Advanced Economies Set to Close 2013 with Excellent PerformanceSource: www.export-egypt.com 12/17/2013, Location: Middle East |
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Equity markets in advanced economies are poised to close 2013 with an excellent performance, up over 20 percent, and led by the US and Japan, according to a weekly report.
The Dow Jones Industrials at about 16000 was up 19 percent on the year in November. Interest rates are closing the year higher, by as much as 120 bps higher in the case of the US 10-year note, up less or about 40 bps higher in the German case, showed the weekly report released by the National Bank of Kuwait (NBK). Official rates short-term remain near zero in most cases and are lower in the EU following the ECB's recent cut in the overnight rate to 25 bps, it said. The general expectation or consensus view going into 2014 is a widely held "more-of-same". In other words: economies are all recovering and improving with the EU in particular about to post further positive growth, after emerging from recession in 2Q2013, it added. Emerging markets, which in some cases suffered from outflows and currency pressures around September when a Fed-taper looked imminent, appear to be in better shape to weather an expected 2014 Fed taper, the NBK report added. The GCC countries continue to post steady growth of about 5 percent on average in real terms (non-oil GDP), on the back of strong financial positions and government spending. Oil prices are near USD 100 pb, but could soften further with progress on the Iranian nuclear deal. The UAE got a further boost to its growth outlook with Dubai winning the bid to host the 2020 World Expo while it, and others in the GCC, keep getting solid support from government infrastructure spending, the NBK report concluded. |
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