This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE! 2Q Outlook: Optimism To Drain From Markets As Eurozone Concerns Resurface

Stocks in this article: GCAP

NEW YORK, LONDON, and SYDNEY, March 30, 2012 /PRNewswire/ --, the retail division of GAIN Capital (NYSE:GCAP), a global provider of online trading services, today released its 2Q Markets Outlook report focusing on major economies' currency movements as well as across asset classes.  Expectation is that market optimism will falter as problems in the Eurozone remain far from resolved.

In 2Q 2012, analysts expect worldwide economic growth to remain fragile, with the US continuing to outperform the troubled Eurozone. They expect the next few months to be a fairly tough economic environment as central banks of Europe and the US limit stimulus measures, which could boost the dollar and other safe havens while denting demand for riskier assets like stocks.

"The first quarter was all about stabilisation in the Eurozone debt crisis and signs of strength in the US economy. The outlook is not as rosy as we enter 2Q.  Investors have to grapple with slowing growth in Europe and China, election risks in Greece and France, and continued uncertainty about future global central bank policy," said Kathleen Brooks, Research Director,  "We believe the yen will continue to trend lower and the euro could be at risk from further downward pressure, especially as we expect the focus to shift from Greece to the growth data coming out of Spain and Portugal.  Key risk events over the next few months include a failed bond auction and rising bond yields, which could send the euro flying south."

Other expectations from the 2Q 2012 Markets Outlook include:

  • We expect to see a pick-up in volatility from very low levels in the second quarter, as election fever grips Europe, China emerges from a period of weak growth and shifts in central bank policy cause waves in global financial markets.
  • Stocks to face a tougher quarter as investors concentrate on growth and the future direction of central bank policy. While stocks won't fall precipitously,  expect some pretty big pull-backs especially in European markets
  • Australia to register lackluster growth and the Reserve Bank of Australia will remain on hold, with the direction of the Aussie dependent on what happens in China.
  • In the commodity sphere, gold to make a bottom before attempting another stab at last year's highs. Also, will copper finally break out of its range and chase crude oil higher?

The research team also highlights potential price ranges for key pairs, such as EUR/USD, GBP/USD, USD/JPY, USD/CHF, and AUD/USD.  Key cross-currency pairs like EUR/JPY and EUR/GBP are also covered.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs