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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (19151)	8/5/1998 3:51:00 AM
From: IQBAL LATIF	Respond to of 50167

My yesterday prediction on ASEA ''in my opinion ASEA would consider this mellowing down as a good neutral affect on Global markets- in relative terms ASEA did very well considering that we had nearly a 4 percent drop in SPX-- the Nikkei futures which were down nearly 200 points at the the close are only down few 40 points-- on Globex SPU is trading a shade higher, although Europe is chopy but I expect the divergence in Europe as fundamentals remain good and investors realise it-- today Europe will catch up on its losses as the trading day moves on. The new wave of selling in Nikkei, and HSI must be a big dissappointment rather the big drop in the market has now seen $ lower against Yen without intervention-- lot of Hot money and speculative long positions were unwinded as a result the pressure on ASEA coming from a weaker Yen has reduced-- we even see China full 1.5% higher. A continued selling from these highs will be looked and as evident today will be read by markets with satisfaction, the hedge funds who have shorted big time do not florish in such circumstances, it weaken their resolve it is prospects of global gloom and doom which provides basic ingredients of a short to survive. The action of ASEA as I expected last night is one more worry for shorts the contagion did not spread!