Dubai: Equity markets in the United States
are likely to consolidate near its record high in a truncated holiday
week, encouraged by signs of the strength in the world’s biggest
economy, triggering positive investor sentiment across the world.
are likely to consolidate near its record high in a truncated holiday
week, encouraged by signs of the strength in the world’s biggest
economy, triggering positive investor sentiment across the world.
Higher crude prices, which has been driving the volatility recently, may help equity markets to rally elsewhere.
The Dow Jones Industrial
Average reached a record high of 18,103.45 on Friday, before closing
0.13 per cent at 18,053.71. The S & P500 index hit a peak of
2,092.70, before closing 0.33 per cent higher at 2,088.77.
Average reached a record high of 18,103.45 on Friday, before closing
0.13 per cent at 18,053.71. The S & P500 index hit a peak of
2,092.70, before closing 0.33 per cent higher at 2,088.77.
“United States may
consolidate at current levels at record highs. If I’m holding stock in
the US market, why should I sell as I’m getting all positive indicators
from data points that are coming out. I don’t see any reason to sell,”
Pradeep Unni, senior relationship manager, Richcomm Global Services told
Gulf News.
consolidate at current levels at record highs. If I’m holding stock in
the US market, why should I sell as I’m getting all positive indicators
from data points that are coming out. I don’t see any reason to sell,”
Pradeep Unni, senior relationship manager, Richcomm Global Services told
Gulf News.
“Even we have minimal
outstanding positions in the market and prefer to be on the sidelines
before we start afresh in the year,” Unni said.
outstanding positions in the market and prefer to be on the sidelines
before we start afresh in the year,” Unni said.
Key indices in the United States may hit another peak.
“I still see
Dow Jones hitting new targets at around resistance area of 18,478 in
the next few weeks and S & P may hit resistance area of 2,127,” said
Osama Al Ashri, member of British organisation, Society of Technical
Analysts.
Dow Jones hitting new targets at around resistance area of 18,478 in
the next few weeks and S & P may hit resistance area of 2,127,” said
Osama Al Ashri, member of British organisation, Society of Technical
Analysts.
US GDP surged by 5 per cent
in the third quarter, expanding at the fastest pace since the same
period of 2003, as US consumers and businesses spent more than
previously estimated. Falling oil and natural gas prices helped bolster
expectations for stronger consumer spending heading into next year.
in the third quarter, expanding at the fastest pace since the same
period of 2003, as US consumers and businesses spent more than
previously estimated. Falling oil and natural gas prices helped bolster
expectations for stronger consumer spending heading into next year.
Positive crude oil
Crude oil, which ended 1.31 per cent lower on Friday, may edge higher next week.
“Market will react to
problems from supplies in Libya and prevailing cold season demand in the
UK and US and its impact on heating oil demand, and its positive impact
on prices,” said Richcomm’s Unni.
problems from supplies in Libya and prevailing cold season demand in the
UK and US and its impact on heating oil demand, and its positive impact
on prices,” said Richcomm’s Unni.
Brent and West Texas
Intermediate extended their annual declines of more than 40 per cent on
Friday, the biggest since 2008, as the Organisation of Petroleum
Exporting Countries resisted supply cuts to defend market share while
the highest US production in three decades exacerbated a global glut.
Intermediate extended their annual declines of more than 40 per cent on
Friday, the biggest since 2008, as the Organisation of Petroleum
Exporting Countries resisted supply cuts to defend market share while
the highest US production in three decades exacerbated a global glut.
“At this stage, crude oil
prices can rally 20 per cent from the lows without changing the negative
outlook,” said Ole S Hansen, head of commodities strategy at Saxo Bank.
prices can rally 20 per cent from the lows without changing the negative
outlook,” said Ole S Hansen, head of commodities strategy at Saxo Bank.
Year-end rally
This may trigger follow-up rally in Europe, Asia and rest of the world.
“The rally seen in US markets last week, may get reflected in Asian markets and elsewhere this week,” Unni said.
On Wednesday, the Australia
Securities Exchange S & P200 ended 0.25 per cent higher at 5,394.50,
while Shanghai Composite Index ended 2.77 per cent higher at 3,157.60.
India’s S & P BSE Sensex Index ended 0.12 per cent higher on Friday.
Securities Exchange S & P200 ended 0.25 per cent higher at 5,394.50,
while Shanghai Composite Index ended 2.77 per cent higher at 3,157.60.
India’s S & P BSE Sensex Index ended 0.12 per cent higher on Friday.
However, liquidity would be
lower as most of the investors are expected to be away on year-end
holidays. Markets are shut on Thursday, but open for trading on Friday.
lower as most of the investors are expected to be away on year-end
holidays. Markets are shut on Thursday, but open for trading on Friday.
“Being a truncated week no
one would be interested in initiating new positions in the week. Even
the liquidity on markets would be dull,” said Unni, adding, “activity in
market would start only after January 5.”
US equities may consolidate near peak, leading world indices | GulfNews.comone would be interested in initiating new positions in the week. Even
the liquidity on markets would be dull,” said Unni, adding, “activity in
market would start only after January 5.”
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