Thanksgiving Day Holiday in the US
US bank holiday will leave the markets desperately thin this afternoon with complete closure of their fixed interest and equity markets plus there being no Dollar cash settlement today.
Yesterday saw a bit of an up and down day on the stock markets with the US indices ending higher at the close on bargain hunting for technology and energy stocks. this has filtered through to a better opening in European bourses and will hopefully hold for the rest of the week.
A bit of positive Corporate news would help but at present, that doesn't seem to be on the cards. The sad demise of Woolworths and MFI along with the less than buoyant economic data lend themselves to this being another of those false dawns.
Yesterday's economic data from Europe, UK and the US all failed to inspire and although the numbers came in as expected, they did sound a bit like Frankie Howard's soothsayer with her Woe, Woe and Thrice Woe'.
GDP figures affirmed, as if we needed it, that the UK and US are deep in recession and there is concern that the measures that have been taken by Governments in all areas to combat the downturn might take an overly long time to trickle through. Pressure will be on to make sure that the initiatives are effective.
The weak US data had an adverse effect on the return on US Treasury Bills with yields hitting 50-year lows. The yield on the 10-year note dropped to its lowest ever level, down 0.13% to 2.98%.
As reported yesterday, China cut rates savagely, the largest reduction in 11-years, in reaction to the rapidly falling growth rate in the country. Even though the economy is still growing at about 7.5% per annum, this level of growth is the minimum required increase for the country to effectively âstand still'.
The Chinese leaders are obviously very concerned. Metal prices jumped on the back of the cut.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Yesterday saw a bit of an up and down day on the stock markets with the US indices ending higher at the close on bargain hunting for technology and energy stocks. this has filtered through to a better opening in European bourses and will hopefully hold for the rest of the week.
A bit of positive Corporate news would help but at present, that doesn't seem to be on the cards. The sad demise of Woolworths and MFI along with the less than buoyant economic data lend themselves to this being another of those false dawns.
Yesterday's economic data from Europe, UK and the US all failed to inspire and although the numbers came in as expected, they did sound a bit like Frankie Howard's soothsayer with her Woe, Woe and Thrice Woe'.
GDP figures affirmed, as if we needed it, that the UK and US are deep in recession and there is concern that the measures that have been taken by Governments in all areas to combat the downturn might take an overly long time to trickle through. Pressure will be on to make sure that the initiatives are effective.
The weak US data had an adverse effect on the return on US Treasury Bills with yields hitting 50-year lows. The yield on the 10-year note dropped to its lowest ever level, down 0.13% to 2.98%.
As reported yesterday, China cut rates savagely, the largest reduction in 11-years, in reaction to the rapidly falling growth rate in the country. Even though the economy is still growing at about 7.5% per annum, this level of growth is the minimum required increase for the country to effectively âstand still'.
The Chinese leaders are obviously very concerned. Metal prices jumped on the back of the cut.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: China, credit crunch, interest rates, UK recession
posted by Dr Search- Principal Consultant at the Search Clinic @ 10:33 AM
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