Market Outlook 1st - 5th August

Market Outlook
- WALL STREET:
US indices declined sharply last week on concerns about the US debt ceiling negotiations. Looking at economic releases, US 2Q GDP rose 1.3% (+1.8% expected) vs +0.4% in 1Q11. Pending home sales increased 2.4% in June (-2% expected) The Federal Reserve report showed that the pace of the economic recovery slowed in June. Also, looking at corporate results, ConocoPhillips reported $3.4B adjusted earnings compared with 2Q10 adjusted earnings of $2.5B. All sectors lost ground last week, automobiles and components recorded the weakest performance (-7.82%), while commercial and professional services and capital goods fell by over 6%. From a chartist view, the S&P500 index is still trading between 1267 and 1370. The technical indicators are mixed to bullish, calling for a limited rebound.

- EUROPE:
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