The Dow Jones index fell 316 points last Friday to 17,281, breaking a seven-week winning trend. The index lost 3.7 percent for the week. But the sell-off was mainly concentrated on energy stocks as WTI crude oil declined to US$57.81 (HK$450.92) per barrel, a five-year low. US November PPI declined 0.2 percent month-over-month compared to the forecasted 0.1 percent. Lackluster data was also seen in China's November industrial production and the euro zone's October industrial production. But lower oil prices may not be bad for US consumers. The yield in 10-year US Treasuries was low at 2.08 percent. This week's FOMC meeting will give some hint about the rate hike from Fed chairwoman Janet Yellen. But market consensus mostly points to a first hike that will not be seen until 2015. Shanghai stocks finished almost unchanged last week though the Hang Seng Index lost more than 700 points after hitting 24,000 early last week. Dr Check is treating this pullback as a healthy correction and is preparing for next year's rally. Keep your holdings and buy more if there is a deeper correction. Dr Check and/or The Standard bear no responsibility for any decision made based on this Column.
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