11/27/00
And earnings continue to addle investors
Investors' distaste for uncertainty continues unabated. Traders were distracted by the U.S. election standoff as court challenge followed court challenge. In Japan, Prime Minister Mori staved off a no confidence vote in the Diet. Earnings reports didn't help. All equities indexes tracked here were down on the week except for the Toronto Stock Exchange composite 300 and the Singapore Straits Times indexes.
The Japanese yen slid on the political crisis there. Investors are concerned that political confusion will misdirect energies away from economic stimulus and the new emergency budget. Markets are fearful that the political crisis could put badly needed reforms and restructuring on the back burner. The euro was unable to hold on to intervention gains and slipped to a three week low. Without intervention, the currency sags.
Forecast season is upon us. The Organization for Economic Cooperation and Development (OECD) 2001 forecast predicts that growth in both the European Monetary Union and the United States will slow. But importantly, the growth differential between the two will remain, continuing to make the dollar more attractive to investors.
Still waiting...
