CFDTrading
Junior member
- Messages
- 49
- Likes
- 1
European Markets Fundamental Outlook
Wednesday, 10 September 2008 09:12:06 GMT
Written by Ilya Spivak, Analyst for CFDTrading.com
Traders have seen little follow-through to economic data releases in recent weeks as price action continues to be guided by broad trends in risk sentiment.
Europe: What to Watch For
• Crude rebounds a bit as OPEC says they will slow “overproduction”
• Korea Development Bank rejects deal to buy stake in Lehman Brothers
Lehman Replaces Fannie, Freddie As Confidence Remains Shaky
Traders have seen little follow-through to economic data releases in recent weeks as price action continues to be guided by broad trends in risk sentiment. Robust optimism following the government takeover of mortgage lenders Fannie Mae and Freddie Mac gave way today on news that Korea Development Bank rejected another deal to buy a large stake in major US investment bank Lehman Brothers. The news saw Wall St close in the red while Asian equity indices opened substantially lower. Investors could be in for significant volatility in the coming days as the specter of a collapse at a major institution continues to threaten financial markets.
DAX 6233.41
Price action is likely to fall in with broad market themes, with Financials seen under pressure. Europe’s largest car maker Volkswagen AG said demand for its diesel based vehicles in the US may be stronger than originally forecast.
FTSE-100 5415.60
Expectations for the Trade balance call for marginally smaller monthly deficits in July than in the preceding month, though this will hardly derail the downward-sloping annualized trend. Further, there is considerable room for a downside surprise following yesterday’s disappointing Industrial Production figures. That metric fell -1.9% in the year to July versus -1.4% expected as the global economic slowdown takes its toll on demand both domestically and in key European export markets.
CAC-40 4293.34
Industrial Production is expected to decline -2.5% in the year to July, while Manufacturing Production falls -3.1% in the same period. The Trade deficit is forecast to improve a bit, printing at -5.0 billion euro in July versus -5.6 billion in June.
IBEX 11350.00
Price action is likely to fall in with broad market themes, with Financials seen under pressure. Grupo Ferrovial SA, the owner of London’s Heathrow airport, is set to release monthly passenger traffic figures.
MIB 28263.00
The final revision of second-quarter GDP is expected to show the economy shrank -0.3% in the three months to June. Private Consumption is expected to fall -0.2% in the same reference period, while both Imports and Exports shrink an equal -0.7%.
AEX 395.73
Price action is likely to fall in with broad market themes, with Financials seen under pressure. Heineken NV, the largest Dutch brewing company, said it would not seek new acquisitions for the time being having bought Scottish & Newcastle Plc earlier this year.
SMI 7189.45
Burkhalter Holding AG, Switzerland’s biggest electrical fixtures company, said first-half profits multiplied nearly 4 times, helped by the sale of several properties. Price action is likely to fall in with broad market themes, with Financials seen under pressure.
Asia Session Key Developments
• Japanese Producer Prices Collapse in August on Cheaper Oil
• Australian Consumer Confidence Higher on Rate Cut Expectations
Asian bourses sell off as new risks emerge to the financial system
Asian markets buckled as optimism from the takeover of Fannie Mae and Freddie Mac met renewed concerns about troubles at major investment bank Lehman Brothers. News surfaced that the bank was shopping parts of its operation to Korea Development Bank and was turned down, raising concerns about the institution’s health. Investors were wary as the specter of a collapse at a major institution continues to threaten financial markets.
Nikkei 225 12346.63 -54.02 -0.44%Tokyo shares took a beating on heightened concerns about the global economy and financial system, following Wall St into negative territory. Japan's wholesale prices collapsed in August as the Corporate Goods Price Index contracted -0.1% versus a revised 2.2% in the preceding month. The result marks the first monthly decline in nearly a year. The drop comes courtesy of the rapid selloff in crude oil and other key commodities. The Current Account surplus declined further in the year to July, contracting -17.3%. The annualized reading has declined for 5 consecutive months as stagnating demand in Japan’s key export markets withers amid the global economic slowdown.
Hang Seng 19999.78 -491.33 -2.40%The Hong Kong Index followed broader market sentiment, selling off on financial system worries set off during Wall St trading.
S&P/ASX 200 4905.50 -74.60 -1.5%Westpac Consumer Confidence rose again in September, gaining 7.0% having scored a massive 9.1% in August. As before, positive momentum is being driven by markedly lower petrol prices and the prospect of a continuing rate cuts from the Reserve Bank of Australia. That did not help the benchmark index, as investors reacted to downbeat Wall St momentum.
Visit CFDTrading.com for daily reports.
Wednesday, 10 September 2008 09:12:06 GMT
Written by Ilya Spivak, Analyst for CFDTrading.com
Traders have seen little follow-through to economic data releases in recent weeks as price action continues to be guided by broad trends in risk sentiment.
Europe: What to Watch For
• Crude rebounds a bit as OPEC says they will slow “overproduction”
• Korea Development Bank rejects deal to buy stake in Lehman Brothers
Lehman Replaces Fannie, Freddie As Confidence Remains Shaky
Traders have seen little follow-through to economic data releases in recent weeks as price action continues to be guided by broad trends in risk sentiment. Robust optimism following the government takeover of mortgage lenders Fannie Mae and Freddie Mac gave way today on news that Korea Development Bank rejected another deal to buy a large stake in major US investment bank Lehman Brothers. The news saw Wall St close in the red while Asian equity indices opened substantially lower. Investors could be in for significant volatility in the coming days as the specter of a collapse at a major institution continues to threaten financial markets.
DAX 6233.41
Price action is likely to fall in with broad market themes, with Financials seen under pressure. Europe’s largest car maker Volkswagen AG said demand for its diesel based vehicles in the US may be stronger than originally forecast.
FTSE-100 5415.60
Expectations for the Trade balance call for marginally smaller monthly deficits in July than in the preceding month, though this will hardly derail the downward-sloping annualized trend. Further, there is considerable room for a downside surprise following yesterday’s disappointing Industrial Production figures. That metric fell -1.9% in the year to July versus -1.4% expected as the global economic slowdown takes its toll on demand both domestically and in key European export markets.
CAC-40 4293.34
Industrial Production is expected to decline -2.5% in the year to July, while Manufacturing Production falls -3.1% in the same period. The Trade deficit is forecast to improve a bit, printing at -5.0 billion euro in July versus -5.6 billion in June.
IBEX 11350.00
Price action is likely to fall in with broad market themes, with Financials seen under pressure. Grupo Ferrovial SA, the owner of London’s Heathrow airport, is set to release monthly passenger traffic figures.
MIB 28263.00
The final revision of second-quarter GDP is expected to show the economy shrank -0.3% in the three months to June. Private Consumption is expected to fall -0.2% in the same reference period, while both Imports and Exports shrink an equal -0.7%.
AEX 395.73
Price action is likely to fall in with broad market themes, with Financials seen under pressure. Heineken NV, the largest Dutch brewing company, said it would not seek new acquisitions for the time being having bought Scottish & Newcastle Plc earlier this year.
SMI 7189.45
Burkhalter Holding AG, Switzerland’s biggest electrical fixtures company, said first-half profits multiplied nearly 4 times, helped by the sale of several properties. Price action is likely to fall in with broad market themes, with Financials seen under pressure.
Asia Session Key Developments
• Japanese Producer Prices Collapse in August on Cheaper Oil
• Australian Consumer Confidence Higher on Rate Cut Expectations
Asian bourses sell off as new risks emerge to the financial system
Asian markets buckled as optimism from the takeover of Fannie Mae and Freddie Mac met renewed concerns about troubles at major investment bank Lehman Brothers. News surfaced that the bank was shopping parts of its operation to Korea Development Bank and was turned down, raising concerns about the institution’s health. Investors were wary as the specter of a collapse at a major institution continues to threaten financial markets.
Nikkei 225 12346.63 -54.02 -0.44%Tokyo shares took a beating on heightened concerns about the global economy and financial system, following Wall St into negative territory. Japan's wholesale prices collapsed in August as the Corporate Goods Price Index contracted -0.1% versus a revised 2.2% in the preceding month. The result marks the first monthly decline in nearly a year. The drop comes courtesy of the rapid selloff in crude oil and other key commodities. The Current Account surplus declined further in the year to July, contracting -17.3%. The annualized reading has declined for 5 consecutive months as stagnating demand in Japan’s key export markets withers amid the global economic slowdown.
Hang Seng 19999.78 -491.33 -2.40%The Hong Kong Index followed broader market sentiment, selling off on financial system worries set off during Wall St trading.
S&P/ASX 200 4905.50 -74.60 -1.5%Westpac Consumer Confidence rose again in September, gaining 7.0% having scored a massive 9.1% in August. As before, positive momentum is being driven by markedly lower petrol prices and the prospect of a continuing rate cuts from the Reserve Bank of Australia. That did not help the benchmark index, as investors reacted to downbeat Wall St momentum.
Visit CFDTrading.com for daily reports.
