US Investment Views 30 Sept

Asia

HSI: –0.09%; HSCEI: –0.19%; SHSE: +1.72%; NIKKEI: –1.99%

Asia was largely down except China. The reason for the lone-rise was, according to Bloomberg, “on speculation government measures to tame reall-estate prices will remove uncertainty over tightening and prevent asset bubbles from hurting the economy”. These things often happen in the markets when things become more clear. But your author has to remind you, to “prevent asset bubbles from hurting the economy” is right, what if there is already bubble?

Europe

Europe was down just before your author started writing this entry, but it is now in green. Reasons are not quite known at the moment, but Ireland continues to make the headline. The cost of rescuing banks in Ireland surged to 50b euros, more than what your author said yesterday, and fiscal deficit is set to rise to 32% of GDP. In Spain, downgrade by Moody’s is confirmed to be one notch, which was very well anticipated. So it was quite a good news, but the markets nevertheless turned positive.

US equity preview

Futures are up, possibly following the rise in Europe. Headlines include Jobless claims decreased 16,000 last week, and revision of US GDP estimate for second quarter from a year-on-year growth of 1.6% to 1.7%. Report also suggests that auto sales in September might have been the best since March. Your author does not thing these have too much impact on the markets, especially the GDP numbers and Jobless claims numbers.

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.