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MPSIF Market Update - 3/10/03 Agenda Agenda U.S. Economic News U.S. Economic News International News International News Geopolitical Influence Geopolitical Influence Market Reaction Market Reaction Where to invest? Where to invest?

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Agenda. U.S. Economic News International News Geopolitical Influence Market Reaction Where to invest?. U.S. Economic News. Dollar hit a four-year low of $1.10 against the euro Revised 4 th Quarter Numbers Positive GDP - 1.4%(from 0.7%) Productivity = 0.8% (from 0.02) - PowerPoint PPT Presentation

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Page 1: Agenda

MPSIF Market Update - 3/10/03

AgendaAgenda

U.S. Economic NewsU.S. Economic News

International NewsInternational News

Geopolitical InfluenceGeopolitical Influence

Market Reaction Market Reaction

Where to invest?Where to invest?

Page 2: Agenda

MPSIF Market Update - 3/10/03

U.S. Economic NewsU.S. Economic News

Dollar hit a four-year low of $1.10 against the Dollar hit a four-year low of $1.10 against the euroeuro

Revised 4Revised 4thth Quarter Numbers Positive Quarter Numbers PositiveGDP - 1.4%(from 0.7%) Productivity = 0.8% (from 0.02)GDP - 1.4%(from 0.7%) Productivity = 0.8% (from 0.02)

Real consumer spending fell by 0.3% in Real consumer spending fell by 0.3% in JanuaryJanuary

ISM (50.5) & Negative Beige Book Report ISM (50.5) & Negative Beige Book Report

Negative Employment Report – Rate cut more Negative Employment Report – Rate cut more likelylikely

Page 3: Agenda

MPSIF Market Update - 3/10/03

International Economic NewsInternational Economic News

Euro AreaEuro Area Unemployment rose to 8.6% in JanuaryUnemployment rose to 8.6% in January Retail sales fell by an unexpectedly large Retail sales fell by an unexpectedly large

1.9% in the year to December1.9% in the year to December.. Continued Problems in GermanyContinued Problems in Germany ECB Cuts rate by ¼ % versus ½ % ECB Cuts rate by ¼ % versus ½ %

expectationexpectation

JapanJapan Japan's jobless rate rose to 5.5% in Japan's jobless rate rose to 5.5% in

JanuaryJanuary Core inflation rate drops for 40Core inflation rate drops for 40thth

consecutive monthconsecutive month

Page 4: Agenda

MPSIF Market Update - 3/10/03

Geopolitical InfluenceGeopolitical Influence Another Deadline for Saddam (March 17Another Deadline for Saddam (March 17thth))

TerrorismTerrorism

Oil PricesOil Prices

Page 5: Agenda

MPSIF Market Update - 3/10/03

Market ReactionMarket ReactionDJIA Nasqaq

S&P 500 IndexIndex CloseClose ChangeChange

DJIADJIA 77407740 -1.9%-1.9%

NasdaNasdaqq

13051305 -2.4%-2.4%

S&PS&P 828828 -1.43%-1.43%

Page 6: Agenda

MPSIF Market Update - 3/10/03

Where to InvestWhere to Invest

Sectors prone for a reboundSectors prone for a rebound Manufacturing?Manufacturing? Basic Materials?Basic Materials? Technology?Technology?

Sectors on DeclineSectors on Decline Housing Sector?Housing Sector? Retail?Retail?

Page 7: Agenda

MPSIF Market Update - 3/10/03

It could be you one dayIt could be you one day