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Market Tips: Oil to Fall Sharply in Fourth Quarter

CNBC.com
Thursday, 16 Jul 2009 | 8:09 AM ET

Global stocks and oil prices were rocky Thursday as investors await results from JPMorgan and Google to determine the corporate earnings climate. Experts tell CNBC that oil is likely to fall sharply at the end of the year.

Oil Prices Likely Decline in Q4

Expect a steep decline in oil prices in the fourth-quarter of 2009, says John DiPlacido, oil trader and president at Energex.

Hot Sectors in M&A

Resources will continue to be the center of M&A activity, notes Todd Marin, head of investment banking, Asia Pacific JPMorgan. He also tells CNBC which other sectors are worth watching.

Look to Corp Bonds and Asia

Corporate bonds and emerging Asia are still the most attractive investment areas, Charles MacKinnon, CIO of Thurleigh Investment Managers, told CNBC.

Upbeat on China

Mark Konyn, CEO of RCM Asia Pacific sees opportunities in China as he believes we will continue to see strong liquidity in the market there.

S&P Could Slump 100 Points

The S&P index could fall toward 800 points in the coming months as economic uncertainty remains, Martin Marnick from Helmsman Global Trading told CNBC Thursday.

Stocks to Tread Water For A While

"The market has to fight a headwind over the next couple of months. You're in that seasonal period where stocks are going to tread water very likely before they make their final yearend sprint to positive territory," David Sowerby from Loomis Sayles said.

Intel Earnings Make Tech Sector Appealing

"The real shot in the arm obviously was the Intel numbers," David Sowerby from Loomis Sayles said Thursday of the positive start to earning season. "The key was better revenue growth than expected, better gross margins than expected, raised guidance." He suggests being overweight in the tech sector.

Good Earnings Aren't Enough

Strong corporate earnings probably won't be backed up by earnings upgrades, which are the key to the outlook, Khuram Chaudhry from Banc of America Securities - Merrill Lynch told CNBC Thursday.

Sidestep AUD & Kiwi Dollar

Use any dip in risk appetite to buy some of the riskier currencies, but not the Aussie dollar or Kiwi dollar, advises Olivier Desbarres, director, FX strategy at Credit Suisse.

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