每日市场点评 - Oct 30, 2007

The market gave back all the gains from yesterday although the trading activities remained relatively quiet. Volume again is on the light side. Oil prices dropped by $3 per barrel but remained above $90. As we are going to get the much waited Fed interest rate decision in less than 24 hours, it\'s worth taking a few minutes comparing what is now with what was 6 weeks ago(September 18th): Interestingly, as for Dow, today\'s closing price is not much different from the September 18th closing price but Nasdaq is almost 7% higher compared to 6 weeks ago. This reflects the strong earning results for most tech companies in Q3. Now let\'s take a look at the oil price. Here the picture is totally different as the oil price is moved up by almost 15% even after taking into consideration of today\'s $3 drop. Higher energy prices along with other commodity prices will add pressure to the Fed as the foremost thing for the Fed is fight inflation. Despite that , it is very likely we are going to get a 25bps cut tomorrow but it will be very unlikely the Fed is going to cut by another 50bps. Again, everything will be clear in less than 24 hours.