Ramsey
25-07-2002, Thu 10:14 AM
عن داوجونز نيوزواير
EUROPEAN OUTLOOK: Markets Set For Rally, Euro Tests Parity
Euro-USD 0.9996 gain 0.0043 up 0.43%
Stlg-USD 1.5756 gain 0.0032 up 0.20%
USD-Franc 1.4506 loss 0.0072 dn 0.49%
LONDON (Dow Jones)--European shares are set for a sharply higher open to catch up with the rally on Wall Street after hours. Government bonds are set to suffer as a result. Meanwhile, the euro has made it back to test parity against the dollar as the greenback continues to struggle.
STOCKS: European stocks are set to open higher across the board Wednesday as they absorb the surge in the U.S. markets. Many blue-chip indexes are called to open up by over 100 points.
However investors will be keen to see whether the Wall Street rally can be sustained or whether it is a bear trap.
The European earnings season continues at full speed with telecoms again taking center stage. British Telecom, France Telecom, Alcatel, Telia and Orange are all reporting. Other big names releasing results include Lafarge, JCDecaux, KLM, Renault and Pechiney, among many others.
Spain's Telefonica will be one to watch after it brought forward its results and reported a EUR5.57 billion loss for the first half of 2002, mainly due to losses incurred by its mobile phone unit.
The company said the huge loss was the result of its decision to write down the value of its third generation mobile start-ups in Europe and of its German data unit, Mediaways. That news will benefit Vodafone and Deutsche Telecom as it leaves the market in their hands.
BONDS: Euro-zone government bonds are set to fall at the open in response to higher stocks and after the losses seen on the U.S. Treasury market overnight.
However, the fall in the value of the dollar against the Euro will lend some support and losses may be limited as investors remain skeptical that equity market gains will last.
FOREX: The euro is starting the session higher against the dollar and slightly above parity.
The dollar stayed weak overnight in Asia, with investors citing concerns over U.S. export potential and concerns that the surge in equity market may be short-lived as concerns over accounting practices remain.
One reason for investors skepticism in the stock market rally is because after-hours AOL Time Warner Inc., the world's largest media company, said that the Securities and Exchange Commission is looking into a series of transactions that may have improperly boosted revenue.
EUROPEAN OUTLOOK: Markets Set For Rally, Euro Tests Parity
Euro-USD 0.9996 gain 0.0043 up 0.43%
Stlg-USD 1.5756 gain 0.0032 up 0.20%
USD-Franc 1.4506 loss 0.0072 dn 0.49%
LONDON (Dow Jones)--European shares are set for a sharply higher open to catch up with the rally on Wall Street after hours. Government bonds are set to suffer as a result. Meanwhile, the euro has made it back to test parity against the dollar as the greenback continues to struggle.
STOCKS: European stocks are set to open higher across the board Wednesday as they absorb the surge in the U.S. markets. Many blue-chip indexes are called to open up by over 100 points.
However investors will be keen to see whether the Wall Street rally can be sustained or whether it is a bear trap.
The European earnings season continues at full speed with telecoms again taking center stage. British Telecom, France Telecom, Alcatel, Telia and Orange are all reporting. Other big names releasing results include Lafarge, JCDecaux, KLM, Renault and Pechiney, among many others.
Spain's Telefonica will be one to watch after it brought forward its results and reported a EUR5.57 billion loss for the first half of 2002, mainly due to losses incurred by its mobile phone unit.
The company said the huge loss was the result of its decision to write down the value of its third generation mobile start-ups in Europe and of its German data unit, Mediaways. That news will benefit Vodafone and Deutsche Telecom as it leaves the market in their hands.
BONDS: Euro-zone government bonds are set to fall at the open in response to higher stocks and after the losses seen on the U.S. Treasury market overnight.
However, the fall in the value of the dollar against the Euro will lend some support and losses may be limited as investors remain skeptical that equity market gains will last.
FOREX: The euro is starting the session higher against the dollar and slightly above parity.
The dollar stayed weak overnight in Asia, with investors citing concerns over U.S. export potential and concerns that the surge in equity market may be short-lived as concerns over accounting practices remain.
One reason for investors skepticism in the stock market rally is because after-hours AOL Time Warner Inc., the world's largest media company, said that the Securities and Exchange Commission is looking into a series of transactions that may have improperly boosted revenue.