Market Outlook - 22nd - 26th August

Market Outlook
- WALL STREET:
US indices lost ground for the fourth consecutive week. On the economic data front, US consumer price index increased 0.5% in July (+0.2% exp.). Producer Price Index rose 0.2% (+0.1% expected) in July, while housing starts fell 1.5% to a 604,000 annual rate in July and industrial production rose 0.9% (+0.5% exp.) in July. Also, Fitch Ratings affirmed its AAA rating for the USA. Regarding US stocks, Hewlett Packard announced the acquisition of UK software firm Autonomy for $10.3B. Wal-Mart 2Q net sales increased 5.5% YoY to $108.6B. Google has agreed to buy Motorola Mobility for a total of appx. $12.5B. Most sectors declined last week, with automobiles & components (-11.09%) and consumer durables (-8.34%) posting the weakest performance, while utilities and food and staples retailing rose most. From a chartist view, the S&P500 is pulling back again to its support at 1100, and should re-test it before any further pullbacks.
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