It looks like the worse the outlook for corporate profits the better it's becoming for investors who are beginning to sense that perhaps the central bank will not raise interest rates again.
We've seen a lot of bad news emerge from the U.S., ... and it's likely to continue with regard to European companies.
There has been a slight softening in the economic data. Profits generally grow in line with the cycle, so if the economic data is growing sideways, or is not as strong as it was, then to what extent does that indicate (a) troubled recovery in profits?.
While this appears no more than a routine reshuffle, September's review is likely the impact the markets in a positive way.
Iraq is still impinging on the market making any move firmer. My concern is that it is going to become more of an issue as we enter next year.
Markets in Europe moved down after a turnaround in the U.S. markets. The good news was that the Bank of England cut interest rates at the same time other European bourses and the Bank of Japan joined in.
In that environment, markets could retest lows, but if we get the policy response then we'll get more of a rally.
Earnings data is very strong. The numbers that are coming out are very much in line or above expectations.
Today has been different from the past few weeks as we have seen real capitulation in the market as every stock and every sector is down.
This week is expected to be quiet with no major earnings reports, ... reached a bottom but a sharp upturn is unlikely.