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Market Pulse: Looming Sept crash? Investors don't think so

Friday, August 31, 2012 - 04:25

Aug. 31 - Stimulus hopes fuel sharp gains for oil, gold and euro zone banks in Aug. And the latest Reuters global asset allocation poll suggests fears of a market crash in September may be greatly exaggerated.

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-- and though some -- today what it's for European markets could herald a more turbulent awesome especially. If the ECB disappoints next week. I'm -- -- and this is today's market pulse so let's take a look at how some key assets performed in August and how they'll likely to perform in September up. Joining me is Reuters correspondent and European rights of our flagship global market support -- to public but so I'm. What they -- today and it's not pretty quiet month has August I am. But under the radar some losses of -- for. Well yes that's right and then there's some of the more obvious ones if you think about all the talk we've had about a quantitative easing. But from the Fed potentially and more assistance from the ECB coming up. The big guy and as. And gold oil and surprisingly impressed the eurozone banks obviously getting some us support from a -- these comments about -- about to doing all that it could. He could to to to fix the use that crimes that he was owned banks up 12% in August alone you might -- 12% of not a law is not well that's true. Equities in general though have had a reasonably good month. People are -- of treading lightly back towards that market still nervous about the some of the risks ahead but certainly looking for opportunities in that area. I'm asset allocation people. For the month of September show that's. Global global investors holdings that explodes at these as the highest performance. Yeah that's right it's it's a sign that them as say people people are looking for yield than looking for returns than looking for. Even a -- of safety really and if big companies you know that that that the major companies drug -- companies are doing better and edits because there is through growth out there and and these companies. Dining. Most exposed to it. The -- sites that of course is that the asset allocation shift maybe that's what acting is. Export -- -- you'd assume government bonds in particular so open bonds and extremely low. Is it Fella in the last that I edgy as you have it. A lot of this is about US funds cutting back their applications eurozone debt I think Japanese funds. European funds in general must be -- steady on the month while they wait and see. How this that he planned pans out but today yet US funds they're just not convinced and that still pulling out and that yet. Global holdings off views on government bonds the lowest in what two years. You've touched and Libya if you want yields. But he wants culprit explosion Israel on both explosion you still wants done -- -- investment vehicle bonds. Yeah this is the message a lot of -- manages. Have been pushing for awhile and and basically backing up their words and actions. There's also it seems like the companies themselves. But -- enough to go to the markets and an issue more debt it's been well received. This say this that company's cash rich. Chasing opportunities in emerging markets it's it's a story that's working for -- -- everybody. Am and yeah I think with the is gonna keep going. From your DNA. From investors and traders. Are we to fought the big shots that many well some are calling phone and system. What you have to say this that has a lot of risks on the horizon in September is that it's a packed month of events. From the Fed meeting in today's that speech from from general Bernanke. Next -- ECB meeting so crucial Euro group meeting. There's issues to do with Greece and and Spain still looming on the horizon I mean a lot could happen but. You know it's got a long way to -- -- -- -- at this point correction not trust. I'm thinks threat potentially go potentially -- -- I mean there are people on the sidelines waiting to put that. That money to work so. That's latency competence and thank you very much but finds that several -- -- of public. Not laws market pulse -- effects of many on financial markets and why I'm -- to give up the supporters.

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Market Pulse: Looming Sept crash? Investors don't think so

Friday, August 31, 2012 - 04:25