This Day On The Street
Continue to site
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 3Q Outlook: Global Austerity Measures Begin To Take A Toll

NEW YORK, LONDON and SYDNEY, July 11, 2012 /PRNewswire/ --, the retail division of GAIN Capital (NYSE: GCAP), a global provider of online trading services, today released its 3Q Market Outlook report.  The report focuses on what to expect in Europe following the EU Summit at the end of last month and the possible implications this has for the wider global economy.  It also includes an in depth view of's currency forecasts for the quarter, along with an outlook for commodities and stock markets globally.

In 3Q 2012, analysts expect worldwide economic growth to stall due to the EU still having some way to go to sort out its sovereign debt crisis and with the US facing a presidential election in November and a fiscal cliff at the beginning of next year.  In 2Q it briefly looked as if the economic recovery was picking up steam but progress has been halted by a resurgence of tensions in Europe and government driven austerity programmes impacting growth. 

"Volatility has started to pick up as we head into the second half of the year.  The Eurozone remains a threat to financial markets, the US economy is starting to weaken and the major global central banks have embarked on looser monetary policies.  This may weigh on the Euro this quarter and, correspondingly, be positive for the Dollar," said Kathleen Brooks, Research Director, 

Ms. Brooks added: "Key event risks to watch for this quarter include Dutch elections in September, the US fiscal cliff and the Federal Reserve meeting at the end of July/beginning of August – where we may find out if the Fed joins the ECB, BOE and PBOC in China in boosting its monetary stimulus or if it decides to ride the economic storm alone. If we continue to see soft economic data we may find ourselves in a risk averse environment for some time as the focus shifts back to global growth."

Other expectations from the 3Q 2012 Markets Outlook include:
  • European stocks may outperform US equities as the US economy starts to slow.
  • The People's Bank of China is likely to ease rates further, which may cushion its economy from the global economic slowdown.
  • In Australia: expect one 25 bps rate cut and a predicted GDP growth rate of around 1.6%, which will likely lead to a stronger Australian dollar versus the euro, US dollar and British pound.
  • It could be a tough quarter for oil as both supply and demand issues limit potential gains.
  • Gold is at risk of a decline in the current deflationary environment as growth slows around the world.

The Markets Outlook report 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 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $117.52 7.90%
GOOG $691.20 -2.10%
YHOO $36.58 -1.00%
TSLA $247.54 -1.60%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs