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Weekly Focus

A glimmer of hope

Fri, May 8 2009, 05:56 GMT
by Allan von Mehren, Steen Bocian

Danske Bank A/S  |  View company's profile


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Global Update

  • Global PMI is rising faster than expected, pointing to a recovery in H2 2009. Risks to global growth are shifting to the upside for the coming quarters after a long time of downward revisions.

  • Especially Asian indicators are turning fast and we expect the strength to continue in the coming months.

  • Indicators on global housing markets are improving. Surveys of housing demand are turning up in both US, UK and Euroland. There are also tentative signs of stabilisation in house prices.

  • Credit conditions are tightening at a slower pace in the US and jobless claims confirm signs of a turn in the business cycle.

  • The EU Commission put the budget situation on the agenda again, as they forecast even higher budget deficits in Euro countries.

  • We look for further rises in risky assets and higher bond yields over the coming months as a continuation of the recovery theme.


Market movers ahead

  • Result of US bank stress tests in focus Thursday. US non farm payrolls main mover Friday.

  • Next week focus turns to US retail sales for April and Q1 GDP data in Euroland.

  • In Scandi, the focus will be on inflation data in Sweden and Norway and a number of central bank speeches in Norway.


Archive


Legal disclaimer and risk disclosure

This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.
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