2007 was a year of volatility for global financial market which was marked by weak USD, much higher energy and commodity prices and turbulence triggered by US sub-prime mortgage crisis; new emerging markets (especially China, Russia and India) were the key drivers of global economic growth and they will continue to be best performers in 2008. In 2008 US economy is expected to slow down in the first half and speed up after it has fully recovered from sub-prime problems and bad debt. We are likely to see slower growth in the developed world except the two commodity export countries (Australia and New Zealand), better performed equity markets in new emerging markets, slightly stronger dollar and higher energy &commodity prices.
Global currency markets outlook for 2008
In 2007 the dollar has fallen 13% against the Euro, 10% percent against the Japanese Yen and 8.5% against the British pound. Although oversold in 2007, the dollar won't appreciate too much but rather rise (or even fall) slightly against the overvalued Euro, Cad, and Gbp because the Fed is very likely to cut interest rates once or twice this year to stimulate economy and an orderly declined dollar is good for US economy. Like US UK is supposed to cut interest rates while Japan will maintain its lowest interest rate due to the dormant economy and New Zealand will keep its highest one in fear of inflation. Both China and India are facing serious inflation now, if China appreciates renminbi it will be quite profitable to buy Asian currencies because other Asian countries want to raise their currency value to contain inflation and at the same time not to lose their market share to cheaper Chinese goods.
Global equity and bond markets outlook for 2008
US and European equity markets will probably remain low in the first half and rise moderately in the second half. Global emerging markets (especially Asian markets) are likely to do well. Japan's economy remains fairly weak and its export-oriented sectors are at risk from a global economic slowdown, so its stock market is not expected to rise much.With the prospect of US inflation rising slightly in 2008, equity markets will certainly outperform bonds and cash yet by an insignificant margin.
Global commodity markets outlook for 2008
In recent years the fastest growing entities and key drivers of global economy are three manufacturing-dominant nations: China, Russia and India, that is to say, they grow by consuming energy and commodity. Since the energy & commodity supply growth will continue lagging behind the demand growth, oil, natural gas and coal prices will rise further in 2008, so will gold, silver, raw materials and agricultural produce.
Learn more about this author, Merlin Penn.
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Global financial market outlook for 2008
- By Madhusoodanan.K.P.
Recently the US Federal Reserve cut interest rates by 75 basis points from 4.25 per cent to 3.50 per cent on January 22 and a further 50 basis points to 3 per cent on January 30.This was the Fed's response to a possible re...read more - By Michael Greaney
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What happens in one company affects all countries since buying and selling is global; therefore,the Global financial market outlook for 2008 is anybody's playground at this time. The serious experts who make their fortunes...read more - By Paul Lines
The global financial market outlook for 2008 is, for the first time in a number of years, quite mixed, with pessimistic outlooks almost equalling the optimistic in the forecasts of many financial observers. Perhaps the ...read more - By Gary C. Gibson
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The year for recession, markets are falling by two-figures and its only January 2008. After 3 weeks of experience in 2008 most people can clearly see the trend for the 11 month that remains. The climate on the markets is g...read more - By Joel Akin
The world is on the look for an out in 2008. If the world we live in is to be then we must find a way of fixing the problem. Now the point of any discussion on such a subject is to find the subject is wealth. People as...read more - By Anonymous Writer
The global financial market outlook for 2008 can be described as steady in terms of underlying economic conditions but variable in terms of individual and isolated market conditions. To predict the complete global financia...read more - By Richard Bakare
I think it is safe to posit the idea that America is a full fledged service economy. Moreover, I believe it safe to wager that the American consumer and American services are closely tied to the global economy. It has been...read more - By Merlin Penn
2007 was a year of volatility for global financial market which was marked by weak USD, much higher energy and commodity prices and turbulence triggered by US sub-prime mortgage crisis; new emerging markets (especially Chi...read more - By Karl Brown
Ongoing turbulence in financial markets as investors reassess the creditworthiness of their own, and their counter-parties' portfolios has dampened the outlook for the global economy in 2008. The strong performance in many...read more - By Phronesis
It is a New Year and people are looking at the global financial market from different angles. At times, it is easier to learn from past mistakes than listening to counsel from experienced people. We cannot talk about the 2...read more - By Henry Tobias
The outlook for the financial market in 2008 is on the surface quite bleak. I am not an expert on financial matters. I even pay a professional to look after my own money. I am however interested in what the other professio...read more
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