Weekly US markets update and outlookChoppy markets look for surety
On light week for data, attention could focus on next administration's strategy
MarketWatch: The economy and the next U.S. president's plans to fix it will likely dominate markets in the coming week. After a volatile five sessions highlighted by the U.S. presidential election, a dismal October jobs report and a cash crunch at General Motors Corp. investors can look forward to a lighter week, at least as far as scheduled news items. The sparse calendar will allow traders to focus on new information about the depth of the U.S. recession. "The market's trying to digest how bad it can get," said Michael Gibbs, managing director in equity strategy at Morgan Keegan & Co. Glum headlines from Detroit may further sour the outlook. On Friday, GM announced a $2.5 billion loss for the third quarter and said may have to halt assembly lines to deal with a cash shortfall. Also of special attention: president-elect Barack Obama's initial moves to counter what he called "the greatest economic challenge of our lifetime."
On Friday, three days after beating Republican contender Sen. John McCain in their race for the White House, Obama briefly addressed his priorities after meeting with his top economic
advisers. With his inauguration three months away, the Illinois senator's efforts are largely limited to supporting fellow federal lawmakers as they discuss a second stimulus package. He can name the appointees that will eventually make the big decisions, however. Of particularly interest is his choice to replace Treasury Secretary Henry Paulson. "The market is wrestling with so much uncertainty now, anyone with a solid financial background, would be a positive," Gibb said.
Markets in the coming week will also get a dash of earnings from the retail sector, which has already said sales floundered even more than analysts anticipated last month. A handful of retailers will report earnings, including Wal-Mart Stores Inc Starbucks Corp., Nordstrom Inc. and Penney Co. Inc.. With the exception of Wal-Mart Thursday, analysts are anticipating all will report a drop in operating profits. That's in keeping with a 14% decline in third-quarter earnings S&P 500 companies are on track to report, says Thomson Reuters. American International Group, Inc. and Microsoft Corp. are also scheduled to report earnings, on Monday and Tuesday, respectively.
Tuesday holiday
Economic releases are few next week, in part because the federal government will close for the Veteran's Day holiday Tuesday. Bond markets and banks are also mostly closed that day. Stock markets, energy and metals futures, and currencies will all trade normally. The biggest dose of economic data comes Friday, when the University of Michigan releases its consumer sentiment index for November and the U.S. government will report retail sales for October.
KLSE CI Update and Outlook
ICap: THe KLSE CI is below its 30-day, 50-day and 50-week moving averages. Its daily MACD has turned bullish but its DMI is bearish.
As the buying interst emerged, the KLCI has been advancing for about 2 weeks, albeit within a defined downtrend. Accompanying sharp reversal pattern is an upswing of its daily indicators. Since the weekly and monthly technical readings are still lagging, more encouraging developments are needed for a significant breakout of the descending channel. Would the US new president able to revive the world's largest economy and hence reverse the global bear markets?
* Still making news. Dr Sheikh: "I am a millionaire? I wish I were"..........One thing I am sure, you have spent millions of dollars. Where is the so called "space experiment report" ah?
* IMF: Expectations of a new Bretton Woods system overhyped! "Things are not going to change overnight"
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