Markets are going through mixed emotions with hope for further easing from the Bank of England whereas on the other side Ben Bernanke Chairman of the US Federal reserve dashed hopes of further Quantitative Easing in the short term but decided to carry on with its “Project Twist” as expected
European markets are looking for a lower start to the day after losses in the previous US session and a report showing that China’s manufacturing might shirnk in June. Its not just the Eurozone that is hampering investor sentiment at the moment but the overall outlook for major economies such as China and US is under question aswell with slowdown in hiring and weaker expected growth.
Considering the risk to reward ratio at the moment it would not be a surprise that investors prefer having cash in their portfolio then looking at major equity markets even though some might consider them to be relatively cheap at these prices.
Posted by Khurram Ali