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Davos / Jobs / Europe Debt Worries
By Marek W. Stupka | February 9, 2010
Over the last couple of weeks, investors have seen a rather high number of sentiment-changing events of which the most important were: A. US jobs report; C. Worries over sovereign debt in Greece, Spain, and Portugal, and C. Closely watched World Economic Forum in Davos, Switzerland.
World business and political leaders gathered in the snowy Davos, Switzerland January 27 to 31 for the 2010 of the World Economic Forum. This year’s theme: “Improve the State of the World: Rethink. Redesign. Rebuild.” In contrast with the noble forum theme and the rethorics of Davos speakers, however, there seems to be no real, lasting, and positive impact of this year’s forum on the Financial Markets. In fact, the behind-the-curtain talk of the very opposite nature turned out to be market moving - Davos 2010 ended up to be banker-bashing (and particular big-bank banker-bashing), with hedge fund and private equity managers delighted to find themselves on the side of the angels for once: “Hey, we’re not bankers.” As one of the Japanese speakers put it, it seems that the western banks are now perceived as the public enemies rather than public-serving institutions.
On the macroeconomic forefront, the data has been pretty favorable: global industrial output is booming, U.S. economic growth accelerated in final months of 2009 and central banks are in no rush to tighten their monetary policy. U.S. non-farm payrolls unexpectedly fell in January yet the unemployment rate fell to a five-month low of 9.7 percent (albeit the economy actually shed 20k jobs).
However, the true market-moving “story of the day” seems to be the persistent worries about fiscal problems in Greece, Spain and Portugal. Concerns over the sovereign credit (and its financing + insurance) in these European countries forced investors to stay cautious, and brought DJIA below the 10,000 level for the first time since October 2009.
ADVICE FOR MY 1-ON-1 STUDENTS: As per the latest news the fiscal situation in Europe might be helped by the European Government and the European Central Bank, expect a choppy trade in the coming weeks. The markets are already perfectly set for the SHER-LOCK Market Personality, go ahead and use it in accordance with the CONFIRMATOR Trading System rules. If you have any questions or any portion of your currently studied training materials seems to remain unclear to you, just drop me an email with questions, as usual…
Topics: Miscellanous |
July 3rd, 2010 at 2:38 pm
Подтверждаю. Я присоединяюсь ко всему выше сказанному. Можем пообщаться на эту тему. Здесь или в PM.