Global Share Market Likely To Remain Up Despite Greek Worries, Says Economist

By Tengku Noor Shamsiah Tengku Abdullah SINGAPORE, Feb 11 (Bernama) -- The global share market is likely to remain up despite the Greek worries, says AMP Capital Investors Ltd head of investment strategy and chief economist, Dr Shane Oliver. He said shares are vulnerable to a short-term pullback after strong gains so far this year, and this may now be occurring on the back of Greek worries. "However, the broader trend is likely to remain up. "Valuations are attractive, particularly against very low bond yields, the risk of a Euro-zone meltdown has receded, momentum in global economic indicators has turned positive, global monetary conditions are easing and there's lots of cash on the sidelines," he told Bernama on Saturday. He said share markets fell late in the week, as positive news regarding a Greek deal on its second bailout package was replaced by fears that it was unravelling. He pointed that the past week globally was dominated by the ongoing soap opera regarding whether Greece would agree to the terms required by the troika of the International Monetary Fund, European Union and European Central Bank for its next bailout package, including the 14.5 billion euros (US$19.13 billion) it needs to avoid defaulting on a bond payment on March 20. Oliver said the second Greek bailout was still more likely than not because both sides have too much too loose if an agreement is not reached. On what to watch this week, Oliver said US January retail sales and industrial production would show further gains, home builders and small businesses would show continued recovery, housing starts and permits would rise and inflation would be reasonably benign. -- BERNAMA