Copenhagen Stock Exchange: Focus: The USA Shapes The Course Of Events, But The Positive Atmosphere On The Equity Market Is Put To The Test

Several equity markets - including the American and the Danish - have in recent weeks reached new record-breaking highs. The motive power has been the by now booming US upswing. In Focus no. 66 Equity Analyst Bjørn Schwarz, Sydbank Markets, looks at the upswing and its impact on Europe. The development on the equity market still appears strong, and the reports from the companies in the current accounting season have once again supported the atmosphere of optimism. The companies have submitted fewer disappointing announcements than in the previous quarters, and there are many signs that the positive mood on the equity market will last a while.

The question is simply whether the trend-setting American upswing will last, and whether it can maintain the trend on the equity market. Even though the upswing may be booming there are five factors that cause Bjørn Schwarz to express concern for the sustainability of the global upswing in the long term:

• Build-up in global savings imbalance
• No job growth in the USA, Europe and Japan
• Global growth dependence on the USA Potential risk of US dollar collapse
• Protectionist measures lie in wait in the USA

Recent figures indicate moreover that the labour market is well on the way to recovery. If this trend is of a lasting kind, it may help eliminate some of the worries that lie heavy on the long-term prospects. Much of the development in the coming months thus depends on the development in the USA.

Read the article "The USA shapes the course of events, but the positive atmosphere on the equity market is put to the test" in Focus no. 66 at the Exchange's website www.cse.dk.