Tuesday, September 18, 2007

Looking at FED decision about interest rate.

Anticipated decision about interest rate is coming today at 20:15 Czech time zone. Therefore I expect quiet trading on Prague Stock Exchange till today closing bell with gap for tomorrow's open. Futures are indicating that chances for rate cut are equal for 25 bp and 50 bp. Worsening US economy with credit turmoil are the main reason for cutting. Contrariwise inflation fear is still visible as we are still out of range 1-2%.


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