Risk Sentiments Stabilized for Now, More Consolidations Before Jackson Hole Risk selloff intensified initially last week in response to S&P's downgrade of US rating and the hollow statement G7 regarding the current market turmoil. Though, sentiments "stabilized" as the week went on, after Fed pledged to keep rates low until mid-2013. The attempt to extend the spotlight of European debt crisis to France was unsuccessful and that's followed by banning of shorting financial stocks in France, Italy, Spain and Belgium. Also, Spanish and Italian yields dropped sharply after ECB buying. Major world equity indices recovered strongly from intra-week lows. However, we believe that the market sentiments were just "stabilized" rather than reversed. The European debt crisis won't go way that easily. And global economies, including US, UK and Eurozone are poised to slow down on austerity measures, dragging down other parts of the world. So, risk assets will remain vulnerable to further selloff even though more consolidations would likely be seen before Bernanke's Jackson Hole Speech on August 26. Full Report Here... | 
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