Fisher Capital Management News: Equity Markets

May 10, 2011 - PRLog -- Equity Markets: All the major equity markets, and most of the emerging
markets, Are stable over the past month. There had been expectations
that the Fed might introduce further quantitative easing measures at
its recent OMC meeting, and this provided some support for the markets
in the early part of the month; but it made only very modest.

Government Bond Markets: The major government bond markets have
made further significant gains over the past month, despite the funding
pressures resulting form huge fiscal deficits, and the renewed concerns
about debt defaults.

Short-term interest rates have remained low, and monetary policy has
been supportive; but it has been the enhanced “safe haven” status of
these markets that has provided most of the momentum, as investors
have sought “shelter from the current storm”. However the moves have
surprised most commentators, and this has led to warnings about “bond
bubbles” that will not be sustained.

Financial Markets: Sentiment in the financial markets has deteriorated.
Signs of slowdown in the Chinese economy, have produced a much
more cautious view of prospects for the rest of this year and in 2011;
and there have been renewed fears about banking problems in Europe,
and the likelihood of sovereign debt defaults. There have also been
further indications of the conflicting views of central banks about the
most appropriate response to the current problems.

Currency Markets: Uncertainty has been the main feature of the
currency markets over the past month. The dollar has recovered from
earlier weakness after the Fed made only very modest changes in its
monetary policy at the latest OMC meeting, and is ending the period
basically unchanged; sterling has weakened slightly against the dollar
but is higher against the euro; and the euro has also fallen back against
most other currencies as the fears about sovereign debt defaults in
Europe have increased.

But the feature of the currency markets over the month has been the
sharp appreciation of the yen because of its enhanced “safe haven”
status. The move is obviously an unwelcome development for the
Japanese authorities, and there has been considerable speculation about
intervention by the Bank of Japan to reverse it; but there has been no
action so far.

Short-Term Rates: There have been no changes in short-term rates in
the major financial centres this month.

Commodity markets have followed the trend in the other markets,
improving in the early part of the period, but falling back towards
month-end.

The main features have been the continued strength of wheat prices
after the Russian decision to suspend wheat and grain exports, and the
sharp fall in oil prices.

Fisher Capital Management Korea is a leading global financial institution holding extensive relationships with financial institutions, institutional investors and corporations across the world. As a full service company Fisher Capital Management Korea provides a full range of investment banking services including advanced risk management, corporate strategy and structure, plus raising capital through debt and equity markets. With this as our backbone we continue to provide a client service second to none.

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Fisher Capital Management Korea is a leading global financial institution holding extensive relationships with financial institutions, institutional investors and corporations across the world. As a full service company Fisher Capital Management Korea provides a full range of investment banking services including advanced risk management, corporate strategy and structure, plus raising capital through debt and equity markets. With this as our backbone we continue to provide a client service second to none.