Stock gains to slow as investors go on data watch
Publication: South China Morning Post - G-China
Provider: South China Morning Post
Date: September 3, 2007
Central banks have been injecting cash into the markets since mid-August and equity investors have reaped the benefits. But concerns over the global credit squeeze and United States mortgage woes haven't disappeared, and if bulls need a reason to check their enthusiasm they won't need to look far to find it.
US Federal Reserve and Treasury officials on Wednesday will testify at a government hearing set up to investigate the credit and mortgage debacle. Expect to hear a lot of polished lines that underscore the fact that regulators had little clue of what the increasingly complicated financial markets were really up to. And that means there's more chance the hearing will produce a bearish market tone rather than a bullish one.
Figures hold clue to Fed move
US markets are closed today for the Labour Day holiday, but once the doors open tomorrow there will be a flood of data for the market to process. Figures on construction spending come out tomorrow, and employment data on Friday. Both will be watched for clues on what the Fed may do at its next policy meeting on September 18.