US markets will be closed on Monday but there will be quite a lot of development there.
Stocks, Bonds in ‘Sweet Spot’ as G-20 Avoids Exit
Sept. 4 (Bloomberg) -- Economic policy makers are signaling they plan to leave emergency stimulus in place even as the global economy pulls out of recession, delivering what Credit Suisse Group AG and Bank of America Corp. call a “sweet spot” for financial markets.
U.S. Treasury Secretary Timothy Geithner and European Central Bank President Jean-Claude Trichet are among Group of 20 finance officials gathering in London today who say it’s too soon to declare victory over the deepest recession since World War II. While data this week confirmed the slump is easing, policy makers are unwilling to curb spending or start unwinding their record low interest rates and debt purchases.
That means stocks will benefit as growth picks up and bonds will be helped by central bankers’ reluctance to lift borrowing costs, say economists at Credit Suisse and Bank of America. The MSCI World Index of stocks has gained 55 percent since reaching a 14-year low on March 9. The Merrill Lynch & Co. Global Sovereign Broad Market Plus Index shows government debt yields are the lowest since April.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aKHQAFivV38U
I think it will be a great week ahead and we might see sooner than later 4800-4900 if liquidity continue to drive this market. The only way I see this rally stopping is either China tanking another 10% and close below 2600 and US cutting the liquidity.
Your views?