The region’s financial markets are likely to edge upward this week in anticipation of strong second quarter corporate earnings being reported by the blue chip companies, a general improvement in risk appetite in Europe and on the back of hopes the US Federal Reserve would unleash a third round of quantitative easing to shore up a flagging domestic economy, say market experts.
“Equities in developed European markets are cheap for those willing to wager that the continent’s problems can be solved by the current political leadership,” wrote Mark McFarland - Chief Investment Strategist at Emirates NBD in his latest weekly research note. “Our outlook continues to extend into Emerging and Frontier Markets for long-term returns. Earnings growth has still to revive across the Emerging Markets space but latest data for June show a strong revival in Saudi Arabia and in Mexico.”
Musa Haddad, Head Trader with National Bank of Abu Dhabi Asset Management in his technical analysis of the Dubai market said: “Trust my higher low, and my weekly Moving Average Convergence/Divergence that is about to give a long term buy signal, as my moving averages are in the process of a golden crossover.”
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