Why IMU is a multi multi bagger, page-15835

Markets again very gloomy overnight.

Europe largely flat though the French market took a bit of a hit. FTSE down 11 points, Dax down 30 points and the CAC down 60 points.

Data showed UK CPI down to 6.8% from 7.9%.

New threat to the UK inflation issue is rising oil prices.

Eurozone construction activity declined.

In the US the markets were dismal. DOW closed lower by 198 points. the NASDAQ Biotech Index was lower by 22 points, the NASDAQ Composite fell by 148 points and the Russell small cap index fell by 6 points.

Main concern to US markets were comments made by US Fed's Boston president Susan Collins that rekindled fears of future rate hikes. These fears are parked by who said what last it would appear.

"Overall, we are well positioned to proceed cautiously in this uncertain economic environment, recognizing the risks while remaining resolute and data-dependent, with the flexibility to adjust as conditions warrant," Collins said in a statement.
She noted that "further tightening could be warranted."

US ISM service data showed an increase in prices - markets were expecting prices to rise at a lower rate.

Comments that the Chinese economy may need a stimulus programme to avoid a nasty hard landing.