Aug 11 2012
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Expect profit taking this week in local markets
Saturday, Aug 11, 2012
Abu Dhabi: The regional markets are broadly expected to trade in the positive territory this week although investors are also likely to book profits to cash-in on the recent upturn in market confidence, say analysts. However, the volume of trade is expected to remain low because of lack of strong catalysts, although rebounding global oil prices are likely to offer support to the region’s markets.
Nevertheless, slowing of China’s exports, Euro zone’s unresolved sovereign debt issues and a decline in the U.S. economic growth rate remain major concerns for global markets and could accentuate downside risks, near-term.
Analysts say the talk of more monetary stimulus by central banks is shoring up the markets at the moment. There’s talk of the U.S. Federal Reserve unleashing its third round of quantitative easing (QE) and the European Bank (ECB) unleashing its own bond-buying programme to ease borrowing costs for debt-laden Spain and Italy, which look to be the next candidates to seek a full Euro zone bailout.
The uncertainties in the global economy are hampering...with Chinese exports under pressure and the European sovereign debt issues raging on. These uncertainties are proving to be a positive driver for gold prices,” Schubert added.
On Thursday, the benchmark Dubai Financial Market index closed 1.08 per cent higher at 1,572.37 while in Abu Dhabi, the Abu Dhabi Securities Exchange’s general index closed 0.81 per cent higher at 2,534.72.
By Himendra Mohan Kumar Staff Reporter
Gulf News 2012. All rights reserved.
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