Investors remain nervous about the longer-term picture in the Middle East, but the easing of tensions in Egypt removes one major worry for global markets and could encourage further gains in the short term, analysts say.
A more stable situation would allow portfolio managers in the United States to focus on some underlying positives this week, including the improving economy and stronger earnings growth.
The coming week is set to be a busy one in terms of clues to the economy’s direction, with data on retail sales coming out on Tuesday and the government announcing the latest figures on consumer prices on Thursday. Inflation is increasingly a concern in fast-growing emerging markets like China and India, but for now price pressures are expected to remain in check in the United States, with core consumer prices estimated to be up just 0.1 percent.
The Egyptian stock market has been closed since Jan. 27 but is set to reopen on Wednesday, and many observers expect it to bounce back as well. In what could also be a bullish indicator, Egypt successfully completed a $1.1 billion bond offering Sunday.
Read the full article in the NY Times.
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