Financial Markets: How Are They Doing?
Market activity is clearly bowing to the tide of approaching event risk. Benchmark equities have put distance between current prices and recent 18-month lows, commodity prices have pulled back from record highs and bond yields have been relegated to tight ranges. There is little doubt that the combination of a rate decision, second quarter growth report and employment number could dramatically change the outlook for the US economy through the second half; but market participants’ speculative spirit is still clearly bruised by the consequences of the credit meltdown last summer. What’s more, there are few signs in the market that expansion was as strong as economists’ forecasts suggest. While beating the worst of analysts’ depressed expectations, earnings were still deep in the red. What’s more, consumer spending, business investment and basic lending are clearly preventing a genuine economic rebound.
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07-30-2008, 11:28 PM
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