Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Markets Get Stimulated

Stock-Markets / Financial Markets Dec 09, 2008 - 07:28 AM GMT

By: PaddyPowerTrader

Stock-Markets Best Financial Markets Analysis ArticleEquity markets continue to put a remarkably positive spin on last Friday's calamitous jobs numbers. Indeed since the low of 741 on November 22nd, the S&P 500 has rallied 22% . Does this then qualify as a bull market? Or merely the seasonal media friendly Santa Claus rally? And all this despite more layoffs from Dow Chemical, UBS and MMM and profit warnings from stocks as diverse as Texas Instruments, FEDEX and trucking company Con-Way.


The buy side spin is that the numbers were a wake up call to officialdom. It also guarantees the mother of all fiscal stimulus packages post Xmas in the form of an unprecedented $500bn (3.5% of GDP) public works program. The theory is that the government will spend the monies directly rather than relying on the consumer (via tax cuts) who might have chosen to save instead.

Today's Market Moving Stories

  • Japan's economy shrank 0.5% q-o-q in Q3 , more sharply than the government initially estimated, due to a contraction in business investment and large destocking. This continues the pattern of very weak Asian data. Might we see intervention to weaken the Yen sooner rather than later?
  • The BRC (British Retail Consortium) reported a 2.6% decline in like for like sales last month. Excluding April 2005 this is the biggest fall since January 1995. Consultancy firm Verdict will release a report today warning that 2009 will be the worst year for the High Street since 1965. I wouldn't exactly be going long any household retail names on the back of all that doom and gloom as some of them may not make it to Xmas 2009. Added to this is the prediction from the RICS that the UK commercial property slump won't end until 2011.
  • Chinese exports are on the slide . No wonder they are thinking of letting their currency go.
  • Swiss bank Credit Suisse, in a new research piece, is predicting that the US will experience 8.1 million foreclosures by 2012. That represents 16% of the housing stock! Ouch.
  • The UK Pension Protection Fund (PPF) has just released its latest PPF7800 Index. This shows the aggregate funding position of pension funds has deteriorated to a deficit of £136bn at the end of November, a widening in the deficit of £38.7bn over the past month. Only 1047 of the 7737 schemes in the survey were in surplus.
  • In news of the pantomime that is set to run and run we learn that bailout nation is close(r) to rescuing Detroit (yawn). Joe the Plumber may end up owning a considerable chunk of two of the Big 3 at punitive rates.
  • Sony is to cut 8k jobs, close plants and reduce investments as sales stall.
  • The Irish government, who played their trump guarantee card foolishly without getting anything in return, seem finally to have copped it that the banks are all take and no give. Thay are now resisting demands to extend the bank guarantee . For more on the Irish banks predicament, check out What's Next For The Irish Banks .

Who Will Win The Race To Zero And Then What?
The race to zero is on .

Central Bank Key Interest Rates

Data Today
The German ZEW survey will be the focus of the European morning. Market forecasters have generally not been negative enough when estimating survey data during the financial crisis and so there are downside risks to the consensus again. That said monetary and fiscal stimulus action over the past few weeks may brighten expectations.

In the UK, industrial production is likely to shrink 1% m-o-m in October, consistent with indications from the CBI industrial trend survey.

In the US, pending home sales data for October should mark a further sharp monthly contraction (2% m-o-m), continuing the negative news from the initial source of all our woes.

The global rate cutting frenzy will continue apace with the Bank of Canada loping another ½% from the current 2.25% base rate to 1.75%.

Disclosures = None

By The Mole
PaddyPowerTrader.com

The Mole is a man in the know. I don’t trade for a living, but instead work for a well-known Irish institution, heading a desk that regularly trades over €100 million a day. I aim to provide top quality, up-to-date and relevant market news and data, so that traders can make more informed decisions”.

© 2008 Copyright PaddyPowerTrader - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PaddyPowerTrader Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in