Credit Crunch Springs Back into Action (BetOnMarkets)
After taking some time off between Christmas and New Year, the credit crunch was well and truly back in action last week. Fears over further banking problems and sovereign debt downgrades for the likes of Ireland and Greece surfaced last month, but until now, these fears have merely been simmering in the background.
British and American economies are still on sick list
Equitieswere firmly on the defensive last week, with all the majorinternational stock indices trading in the red. The negative sentimentset in after Wednesday’s ADP Non Farm Employment figures fell by693,000 between November and December, which was way ahead of consensusestimates.
Markets suffer their worst run for generations (BetOnMarkets)
The final week of 2008 passed with many markets recording their worst annual performance for generations. Equities finished above their lows, but still finished down by at least 30%. The S&P 500 closed 2008 down 38%, while the Nikkei closed down over 40%. The ‘lost decade’ rolls on ever more for the Japanese stock market.
Automaker Bailout Fails, Stock Market Short Lived Optimism Evaporates (BetOnMarkets)
After an opening surge on Monday, markets had a mixed time of it for the remainder of the week. President elect Barack Obama’s announcement of a huge public works program helped virtually every market rally against the main trends of the last few weeks. Equities and commodities were higher, while the dollar, bonds, and CDS levels all eased.
Financial Markets See More Contractions (BetOnMarkets)
Markets received a jolt of pain on Friday, as US employment numbers came in at -533,000, way beyond consensus estimates. The figures were the worst for three decades and are yet another instance to add to the ever growing pile of “once in a generation” type extremes that we've seen in 2008. Friday’s numbers were predicted by just one outfit (ING) and that was seen as an outlier.
Stock Market Santa Rally Could Correct this Week (BetOnMarkets)
Markets pulled their socks up last week, with global equities putting some distance between the November lows and Friday’s close. The FTSE 100 enjoyed a 13% weekly gain, while the Dow, S&P500 and Nasdaq are up 17.1%, 19.9% and 18.3% from the November lows respectively. The week started well with traders liking what they saw in the massive bailout of Citi group.