Friday, August 24, 2007

Pre Market Update

The markets across Asia and Europe are mixed. Shanghai continues on higher as usual.

Durable good orders rose sharply in July by 5.9% versus a consensus of 1%.Orders went up for machinery, automobiles, metal products, airplanes and communications equipment. That blunted a drop in demand for computers, as well as electrical equipment and appliances. This is good news for manufacturing and the economy as a hole but not so good for stocks as this reduces the likelihood of a Fed rate cut.

The markets are expected to open lower today.The trend is still pointing upwards though a pullback is not out of the question as traders cash in gains ahead of the weekend.

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