Wall Street resumed its rally this week after new data showed the overall economy is holding up, but isn’t so strong as to prevent the Federal Reserve from cutting interest rates says Betonmarket’s Michael Wright. The Dow Jones industrial average saw an increase of nearly 200 points on Wednesday. Stocks turned around following two sessions of losses, after a report showed hiring in...
Last week world stock markets managed to recover somewhat from the mauling of most of November. On Tuesday and Wednesday alone the Dow Jones and S&P 500 put on 500 points and 60 points respectively. This puts the S&P 500 back in positive territory for the year heading into what is usually a benign festive trading period. On the currency markets, the Dollar continued to strengthen against...
Wall Street barreled higher this week, giving the Dow Jones industrial average its biggest two-day point gain in five years, after a Federal Reserve official hinted that the central bank may lower interest rates again says BetOnMarkets.com’s Michael Wright. Investors’ renewed hopes for a rate cut added to their relief that companies that made losing bets on sub-prime mortgages, such...
“ The Economy, stupid†was a sign hung in Bill Clinton’s campaign headquarters to keep everybody “on message” in 1992. It was originally meant as an internal motivator, but it soon became a famous centre point for Bill Clinton’s victory against George Bush Snr. At the time Bush was accused of neglecting the domestic economy as the US went through a recession from 1988 to...
The economic roller coaster continues, but unfortunately sick bags will not be provided says BetOnMarkets.com’s Michael Wright. Wall Street resumed its slide last week, as the uneasiness about the wilting mortgage market and concerns about the broader economy, triggered selling ahead of the unofficial start to the holiday shopping season. The Standard & Poor’s 500 index and the...
Last week the FOMC was forced to inject the largest amount of liquidity into credit markets since September 2001. This and fresh write down announcements from large financial firms, all but eradicated the gains from the spectacular rally on Wednesday. The big question many analysts were asking was is the worst really over? The problem is that many firms dont actually know themselves how much...
After the party comes the hangover, and of course the bigger the party, the bigger the hangover. Over the last few years, financial companies have been gorging themselves on ‘foolproof’ credit trades, based on sub prime debt. Now the party is over and companies are having to face up to their antics in the cold light of day, says BetOnMarkets.com’s Michael Wright. Last week was...
For once it wasn’t just the Dollar that took a beating last Friday as the British pound fell sharply against the Yen, Euro, Swiss Franc and even the Greenback itself. The fall was all the more telling given the general mauling the dollar took last week against a whole host of currencies. Before Friday’s pullback the Dollar hit a 26 year low against Sterling. Traders were wary of holding...
Wall Street suffered yet another big drop last week, with investors worried about the spreading fallout from the credit crisis at banks, and about a dollar that just keeps getting weaker. The Dow Jones industrial average fell more than 360 points on Wednesday, coincidently just about matching its post FOMC drop on Thursday November 1st says Betonmarket.com’s Michael Wright. A lot of...
The Dollar again grabbed the headlines last week as it hit all time lows against the Euro and levels not seen in generations against the Pound & Canadian Dollar. The reason for this drop in the medium term has been the gradual weakening of the US economy as it tries to fight the effects of the credit crunch and a housing slump. Recent Case-Schiller data showed that US house prices fell for...