What a day, I wake up to the news that Fitch has downgraded Portugal, leading to a strong sell-off in Euro–reaching a ten month low against the dollar. This news was not tremendously surprising, and I expect the situation in Europe will get far worse before getting better, especially if Greece doesn’t find a funding […]
Archive:
Inventories
The market generally accepts that over the months’ ahead companies will begin restocking dwindling inventories. In fact Goldman Sachs recently updated their 2H09 GDP forecast to 3.0% from 1.0% on the back of expected inventory restocking. This will undoubtedly have a positive effect on US industrial Production, manufacturing, and ultimately US GDP growth for a […]
Oil prices are likely to continue facing downward pressure as the year progresses, stemming from an oversupply amid weak demand. The downward pressure placed on oil prices will probably be exacerbated later this year due to seasonal factors, which include the end of the summer driving season. First off, I would like to point out […]