Evening Folks

DJ fut +18
FTSE fut -34

Market mixed for the moment...

Movement ahead into the new year, performance in Asia will very much depend on how well emerging markets grow and if US succeeds in a soft landing. Inflation will remain as emerging markets growth is commodity intensive. The question lies in ability to sustain in such inflationary evironment, both for emerging and developed countries.

US continues to suffer from weaker 4th quarter economic performance as shown in sales of existing homes and internet sales growth. Treasuries gain as expectations of such woes to stay moving forward.

Pakistan stocks and currency fell due to assasination of Bhutto. Such events will have a lasting impact as funds will reconsider the risks involved. What investors are looking at is for political situation to stabalise.

Vietnam's economic growth hit fastest in 11 years led by manufacturing and service sector. Government are supportive in their countries progress which plays a major role in growth. Tourism will also see tremendous growth going forward. Inflation is a factor of concern dragging the speeding wagon down.

Take note of how situation in US and EU progress in the new year, and the measures used to deal with slowing growth and inflation issues, as this plays a critical role in how things will unfold.

Enjoy your holidays, happy new year...