Stock markets can’t wait for FED meeting

U.S. Federal Reserve can put in focus a number of issues, but can’t solve all of them

In brief: Investors in Europe are lowering their expectations, after FTSE, DAX and CAC indices grew by 0,64%, 0,32% and 0,55% respectively.

Although the overseas indices closed with growth, European bidders view it as a short-term effect. Persisting problems in the U.S. residential property market may provoke a fresh turn of recession, which even the U.S. government can hardly cope with.

There are also the issues of investor’s fears and general instability in the market, which is likely to go through a downhill trend. The FED weekly report on jobless claims is still the most anticipated event of the day. Analysts predict a reduction in the number of initial claims by 10 thousand and growth of unemployment rate to 4.5 million. As expected, the number of claims may not reach the half-million peak of November 2009. Tomorrow’s yearly FED round table will surely both seal the fate of daily and weekly trades and determine further market climate.

Alex Korneev
2010-08-26 21:43, Economics.

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