The recent Wall Street meltdown can put so much worry that stronger dollar along with Europe's economic shutdown could hurt America's corporations. Next week is important as investors are looking forward for the third-quarter earnings to begin.
Reports observed that most investors are focusing on dollars and oil prices for the third-quarter season.
Dollar's strength against Euro is among the few postive factors to consider for Europe, with the region showing some weak currency. Exports should also improve, just like how dollar helped improved portions of the U.S. economy during recession.
Chief Market Strategist at Wunderlich Securities Art Hogan said, "The weaker the Euro gets, the more competitive Europe is in the global economy."
"With the weaker euro, there should be some stabilization with exports from Europe; like the U.S. with a weaker dollar coming out of the recovery, it helped our growth and got us back on track to some degree. So from a timing perspective, it's a good thing for European companies," said James Liu, Global market strategist at J.P. Morgan Funds.
"European companies should benefit from this, so markets in Europe have a tail wind," he added.
Investment strategist at Edward Jones, Kate Warne said, "The dollar will be negative for some of the larger companies with global operations, but most have protected themselves from currency swings, so it's likely to be more of an excuse" opposing to the actual reason.
Warne said that if they expect to dampen the U.S. earning, then some European companies can benefit from stronger earnings. Investors don't pay close enough attention to it when there can be potential in it.
"Investors might want to take advantage of the stronger dollar to add European companies," said Warne.
