Monday, November 18, 2002
Investors and analysts continue to speculate about the meaning of the various central bank decisions of the previous week. Investors are trying to figure out whether the ECB will or will not cut rates to stimulate Europe's barely growing economies. Worries still linger, especially in the currency market, over what the Fed knows but isn't telling. Speculation in Britain, in contrast, is quiet due to the upward climb of the Bank of England's inflation measure. By the end of the week, market players once again focused on new economic data. Asian investors - because of the region's reliance on American customers - celebrated after U.S. retail sales were better than expected.
The equity indexes followed here were once again mixed on the week. The London FTSE rose for a second week. The Frankfurt DAX and Paris CAC managed to reverse the previous week's declines. But in Asia, only the Hong Kong Hang Seng managed to finish in positive territory. In the Americas, the Mexican Bolsa fell. Gains ranged from 3.8 percent (NASDAQ) to 0.5 (Dow). Losses ranged from 2.8 percent (Bolsa) to 0.3 percent (Australia all ordinaries and South Korean Kospi).
The International Energy Agency warned that oil market imbalances remain despite the recent sharp drop in crude oil prices. In its monthly report, the IEA said crude oil and oil product inventories remain low heading into the Northern Hemisphere's winter season. In addition, it revised up its estimate of fourth quarter world oil demand. While early cold winter weather boosted demand for oil products in October, crude oil demand actually dropped, helping to reduce crude oil prices by almost $4 a barrel during the month. Previously weak profit margins and scheduled maintenance reduced refinery production, cut demand for crude oil, at least in the short-run.
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Still looking for the US spark
