Daily FNArena News

China’s emerging middle class cannot be underestimated, and foreign companies wishing to benefit will need to follow the Chinese up the income ladder.

Intersuisse advises investors to buy Coles Myer shares and tender into the buyback.

Danske Bank sees another three to six months of focus on negative news flow as energy prices and rising inflation take their toll. Beyond that, Danske’s favoured view is for a resumption in global expansion.

The recent correction has left valuations at attractive levels, UBS says, recommending infrastructure and resource stocks.

Economists at ABN Amro note that all the corporate profits outside the mining sector and the finance industry have evaporated in Q1. This will have consequences for future investments in Australia, they believe.

With all eyes on the World Cup and traders distracted, Lloyds TSB expects the EUR/USD to take a dip into next week. As for commodity prices, the strength story has been overdone, the economists say.

HSBC’s senior economist Edwards has sharpened his view on Australian interest rates following this week’s stronger than expected economic data.

The 30 month outlook for the US dollar is for further decline, Deutsche Bank suggests, as one would expect the gold price should move up accordingly.

Technical chartists believe the S&P/ASX200 index is now in danger of falling further as key technical support levels have been breached.

Dennis Gartman believes the current price movements for gold are critical for the short term outlook.