1st half 2010 Global markets review and 2nd half 2010 outlook

What was happened in 1st half 2010

Global stock markets:

Majority of the indexes especially Asian markets are testing the new high of 2010, while some of the others like EU markets are trying to rebound after the crash in May sending the indexes to the low of 2010 in May or June this year. That was purely caused by the turning of the high hopes of economy recovering into "Double dip recession", this was due to some of the EU countries' weak economy conditions such as Low GDP growth after the recession, High unemployment rate, high debt position. This makes the investors and retailers taking profit and withdraw from the stock markets to a safety heaven like putting back the savings in the banks as the interest rate is increasing in some of the countries like India, Australia, New Zealand, Malaysia.

Stocks financial results (1st half 2010):
Majority of the global organizations reported fantastic financial results in 2nd quarter of 2010 - Easily upbeat analyst prediction. This is resulted compare to the weak performance of 2nd quarter 2009 - year to year comparison. Most of the commodities recovering, and thanks to the government stimulus package have successfully supported the organizations to drive them from falling into financial problems.

Future prediction (2nd half 2010):

1. Global governments are trying to withdraw the stimulus package to observe the sustainability of the global economy recovering, they are hoping the economy will be driven back by the consumers. The government is forced to cut the spending in order to bring down the debt/liability level.
2. Global governments may stop or delay the interest rate's increment as worry it may bringing the negative impact to the economy recovering.
3. Global economies may achieve slower GDP growth, slow down in economy recovering.
4. Some of the countries especially EU members may fall back into recession.
5. Commodities may retreat due to the lower demand and over supply condition.
6. Gold may retreat when profit taking kicks in near term, as governments need more cash.
7. USD may retreat in line with the weakness of the US economy, Asian currencies may holding firm and appreciate against US and EU.
8. Global organizations may struggle to continue achieving positive month-month growth, and slowing down in year-year growth.
9. Most of the investors and retailers have lower confidence about the economy recovering sustainability, resulting them to withdraw and taking profit from the stock markets - leads to the fall of global markets.
10. Global stock markets may drop in 3rd quarter, subsequently creating another golden opportunity for investors to pick up good fundamental stocks for the year end rally again.