Ramsey
22-08-2002, Thu 9:31 AM
Úä ÏæÇæÌæäÒ äíæÒæÇíÑ
EUROPEAN OUTLOOK: Stocks May Stretch Gains Some More
Euro-USD 0.9778 loss 0.0026 dn 0.3%
Stlg-USD 1.5266 loss 0.003 2 dn 0.4%
USD-Franc 1.5024 gain 0.0050 up 0.3%
ZURICH (Dow Jones)--European shares are expected to open higher and government bond prices lower. The euro starts in a lower range against the dollar.
STOCKS: European shares are expected to open slightly higher in carrying on gains from Wednesday.
European stocks gained on earnings news but retreated from session highs later on volumes that caused analysts to question the longevity of the current upswing.
Strategist Richard Kerr at Banc of America said poor volume trends indicate that European bourses are likely to run out of puff as the valuation argument loses strength. He warned that the market consensus for 2003 earnings growth is still too high and further economic gloom was likely to keep earnings estimates in focus.
"We are still seeing a rally in a downtrend," said Ian Williams, strategist at Granville Baird. He added that low volumes mean the big-cap, liquid stocks are seeing most of the trading activity and said that investors are still risk adverse.
"Given the doubts hanging over company forecasts, there still is downside risk," he said, adding that the issue remains whether company profit forecasts are excessively optimistic.
Strategists at CSFB said in a note that while investors will continue to pay some attention to valuation levels, these will play second fiddle to the outlook for companies' earnings.
The Wall Street Journal reports that European executives generally appear ready to comply with a new U.S. law requiring top corporate officials to attest to the accuracy of their financial results.
On tap this session for reports are ING, Clariant, Linde and Swisscom, among others.
BONDS: Euro-zone government bond prices are expected to open lower with shares back in fashion.
Euro-zone government bond prices fell Wednesday, as comments from U.S. Federal Reserve officials dampened hopes of an interest rate cut in the near future.
Euro-zone bonds continued to underperform U.S. Treasurys and the 10-year spread between bunds and T-notes widened 11 basis points to 40 basis points.
FOREX: The euro opens the session at slightly lower levels against the dollar after giving up gains made in U.S. trading.
Traders are now positioning in a new, lower range of $0.9750 to around $0.9800.
The dollar had slipped after comments from Federal Reserve policymakers threw cold water on hopes for lower interest rates sometime soon.
Meanwhile, the correlation between the price of oil and the euro has grown notably tighter since Sept 11.
EUROPEAN OUTLOOK: Stocks May Stretch Gains Some More
Euro-USD 0.9778 loss 0.0026 dn 0.3%
Stlg-USD 1.5266 loss 0.003 2 dn 0.4%
USD-Franc 1.5024 gain 0.0050 up 0.3%
ZURICH (Dow Jones)--European shares are expected to open higher and government bond prices lower. The euro starts in a lower range against the dollar.
STOCKS: European shares are expected to open slightly higher in carrying on gains from Wednesday.
European stocks gained on earnings news but retreated from session highs later on volumes that caused analysts to question the longevity of the current upswing.
Strategist Richard Kerr at Banc of America said poor volume trends indicate that European bourses are likely to run out of puff as the valuation argument loses strength. He warned that the market consensus for 2003 earnings growth is still too high and further economic gloom was likely to keep earnings estimates in focus.
"We are still seeing a rally in a downtrend," said Ian Williams, strategist at Granville Baird. He added that low volumes mean the big-cap, liquid stocks are seeing most of the trading activity and said that investors are still risk adverse.
"Given the doubts hanging over company forecasts, there still is downside risk," he said, adding that the issue remains whether company profit forecasts are excessively optimistic.
Strategists at CSFB said in a note that while investors will continue to pay some attention to valuation levels, these will play second fiddle to the outlook for companies' earnings.
The Wall Street Journal reports that European executives generally appear ready to comply with a new U.S. law requiring top corporate officials to attest to the accuracy of their financial results.
On tap this session for reports are ING, Clariant, Linde and Swisscom, among others.
BONDS: Euro-zone government bond prices are expected to open lower with shares back in fashion.
Euro-zone government bond prices fell Wednesday, as comments from U.S. Federal Reserve officials dampened hopes of an interest rate cut in the near future.
Euro-zone bonds continued to underperform U.S. Treasurys and the 10-year spread between bunds and T-notes widened 11 basis points to 40 basis points.
FOREX: The euro opens the session at slightly lower levels against the dollar after giving up gains made in U.S. trading.
Traders are now positioning in a new, lower range of $0.9750 to around $0.9800.
The dollar had slipped after comments from Federal Reserve policymakers threw cold water on hopes for lower interest rates sometime soon.
Meanwhile, the correlation between the price of oil and the euro has grown notably tighter since Sept 11.