Despite weak credit conditions, lower oil and a slumping euro, Goldman Sachs is optimistic about the region’s growth prospect this year, said Kevin Daly, Senior European economist at Goldman Sachs. The investment bank revised euro area’s GDP growth-forecast higher – between 1.2% and 1.5% for this year and between 1.6% and 1.7% for next year. For the first-time, GS is …
Stocks Regain Momentum To Finish The Day In The Black
[Chart courtesy of MarketWatch.com] 1. Moving the Markets Stocks began the day in the red, but all major indexes climbed back to close in positive territory. The big news of the day was that S&P 500 conquered 2,100 for the first time, another record closing. One of the primary drivers behind market gains today was the news that Greece will …
One Man’s Opinion: Will Earnings Expectations Be More Moderate This Year?
A hike in interest rates may not happen in the US this July though that probably remains the appropriate policy move, said David Joy, chief strategist at Ameriprise Financial. Ameriprise expects the US economy to grow by 3 percent in 2015, which justifies the beginning of a liftoff; but whether that happens in June or July remains to be seen. …
One Man’s Opinion: Will the European Central Banks Initiate QE?
Latest data from he European Union showed annual inflation rate in the euro-zone slowed further to 0.3 percent in July from 0.4 percent in the prior month. A combination of two factors –low import prices, which is a legacy of a stronger euro, and low food prices are pushing the euro-area into the low inflation regime, said Paul Donovan, Managing …
One Man’s Opinion: Will The European Central Bank Initiate Quantitative Easing In June?
The Purchasing Managers Index numbers in the 18-member euro zone were disappointing but were equally consistent with an annual growth forecast of about 1.5 percent, which, if achieved, would be great in what has been witnessed in the euro land generally, said James Bevan, Chief Investment Officer at CCLA Investment Management. It is likely that the euro-area will witness a …
One Man’s Opinion: Is The European Central Bank Likely To Cut Refinance Rates In June While Refraining From QE?
The eurozone grew in the first quarter despite no mending of balance-sheets at the macro-level and stagnation in France and the Netherlands, said David Owen, Chief European Economist at Jefferies International. The building blocks for a sustainable and strong-based recovery were not simply there. Inflation in May is likely to print at or below 0.5 percent, which will put pressure …