The regional stock markets are likely to rally post Eid as the second quarter corporate earnings of blue-chip companies have by and large exceeded the markets’ expectations and the downside risks on the global financial markets have lately abated which is encouraging investors to buy into riskier assets, say experts.
The global markets have been rallying in the anticipation there would soon be an announcement of a third round of quaqtitative easing (QE-3) by the US Federal Reserve to shore up a flagging US economy. As well, the markets expect the European Central Bank to do its own QE by buying sovereign bonds of debt-laden countries such as Italy and Spain to drive down borrowing costs.
The region’s markets are currently closed for Eid holidays. The UAE markets will resume trading on Wednesday. Other stock markets in the region are also expected to re-open by next Sunday.
No comments:
Post a Comment