Market Outlook 8th - 12th August

Market Outlook

- WALL STREET:
US indices lost ground last week, taking part in a massive sell-off on global financial markets. On the economic front, US unemployment rate fell to 9.1% (9.2% expected) in July, while factory orders dropped 0.8% in June as expected. In other news, S&P's downgraded the US LT debt rating to "AA+" from "AAA" with a "negative" outlook. Regarding corporate releases, AIG posted a 2Q net income of $1.8B vs a net loss of $2.7B a year ago. All sectors declined, with real estate (-11.69%) and automobiles & components (-11.05%) posting the weakest performance, while energy, banks, diversified financials and materials lost over 9%. From a chartist view, the S&P500 index is accelerating on the downside after the breakout of the lower boundary of its MT range pattern. Next down targets are set at 1130 and 1100.

- EUROPE:
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