Mitsubishi Group - Rally Off Lows Is Bear Bounce...

Online, July 30, 2010 (Newswire.com) - Mitsubishi Group has issued guidance to its clients warning that the current rally in equity markets is nothing more than a bear market bounce adding that nothing has fundamentally changed since last week when global bourses shed value on poor economic data and worries over Europe's imminent bank stress tests.

A trader at the firm cautioned that the most pertinent data and indicators still point to a significant slowdown in the US economic recovery and that Europe's "all-together-now" austerity measures being rolled out in a bid to reduce deficits may well slow growth to a standstill on the other side of the Atlantic.

"Mitsubishi Group" rejected suggestions that they were "perma-bears" with George Ellis, Head of Institutional Trading at the firm saying, "Only a fool would believe that the US economy can continue growing at the clip it managed when it emerged from recession. Consumers aren't consuming, real estate is turning downwards again and unemployment is starting to show signs of heading upwards again".

An analyst at "Mitsubishi Group" refused to rule out the possibility of a double-dip recession in the US and warned that, even if the nation managed to avoid another period of negative growth, to the ordinary American in the street, it would certainly feel like a recession.