Wednesday, October 7, 2009

Stock market is driven by expectations of earnings

Gold sets new historic record, but the expectations for inflation are relatively stable. USD TWI index close (0.7%) to break through the key support. It may coincide with a breakthrough level of 1.4844 on the euro / dollar.
Yesterday started a large-scale rally of stock markets, which continued at the Asia-Pacific session. However, some concern is the fact that high-yield corporate bonds (HYG) and investment grade corporate bonds (LQD), belonging to the category of stock index funds (ETF), not followed them.
Now follow the data on consumer lending, as they may provide yet another proof that the American consumer reduces the proportion of borrowed funds in its capital, which could jeopardize the recovery of domestic demand.
The British pound remained under pressure after disappointing data on total industrial production and production in the manufacturing sector.


Saxo Bank

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