Saturday, December 18, 2010

"Double dip" or voice concerns about a global stock market underway.

<P> Inadvertently, on the global economy "double dip" concerns re-struck. .</ P> <P> the central bank in the United States and Britain have announced cut of the economic outlook, Europe and Japan and other large economies for industry data is also lower than expected, while the closely watched industrial production in China this week .and import data are not strong. .For a time, investors may be second bottom of the world economy worries increased sharply. .</ P> <P> by this drag on, U.S. and European stock markets plunged across the board 11 close, a drop of more than 2% in general. .The Dow ended down 2.5%, the three major U.S. stock indexes since July 16 suffered its biggest one day fall this year to fully erase all the gains. .Used to measure the U.S. stock investors fear the Chicago Board Options Exchange Volatility Index surged 14% in 11, the highest since June 29 the largest increase, highlighting the strong market risk aversion. .</ P> <P> 12 Asia-Pacific stock markets continued to slump, most stock indexes lower. .South Korea, Australia and the Philippines stock market fell more than 1%, Hong Kong and Chinese Taipei's stock market fell 0.9%, respectively, and 0.8%. .In the A-share market, Shanghai and Shenzhen stock index briefly suspended the previous day's rebound, closing down more than 1% are. .The Shanghai Composite Index finished lower intraday, closing below the 2,600 point mark integer, at 2575.47 points, down 1.23%. .</ P> <P> 12 The European markets opened, the major indexes continued to decline. .The latest U.S. employment data released a further blow to sentiment. .According to Labor Department data, U.S. initial jobless claims last week, the number increased to 484,000, is expected to only 465,000, suggesting the job market is not optimistic. .12 at midday, the pan-Osborn Trafigura 600 index rose turn down, or 0.4%. .U.S. S & P 500 index futures extended losses to 0.8%. .Crude oil futures fell more than 12 electronic trading 2% to below 77 U.S. dollars. .Spot gold prices rose 1.3% and stood on the near one-month high. .</ P> <P> Analysts said the stock market did not associate the Federal Reserve announced measures to respond positively to quantitative easing, mainly due to investor doubts about the effects of such moderate measures. .But from another perspective, the Fed may be forced to take the next step more radical QE. .</ P> <P> former chief U.S. economist at Merrill Lynch, Rosenberg said the Fed expected the economy down again, something that makes stock market investors unbearable, because it may mean the need for revaluation of earnings forecast .. .</ P> <P> compared with cautious economists, many investors do not similarly worried about the current decline was too worried. .Credit Suisse Private Banking chief investment officer, Robert 11, said the current U.S. stock market valuation is not high. .The Fed decided to pledge funds to buy government bonds at maturity measures are positive signal that the authorities will spare no efforts to stop the economic decline. .</ P> <P> well-known investors Mobius believes that the stock market, again a "double dip" the concern is a good thing, because it will force the policy authorities continue to maintain a relaxed policy environment for the stock market .provide sufficient liquidity. .</ P>.

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