An Update On The Stock Markets

The stock markets continued their downward spiral as investors mulled the reality that a recovery is not around the corner, and it will be a hard and long struggle. The losses were rather modest than yesterday, but it was still another tough day on the Stock Markets. Originally the day has started well with investors reacting positive to the news that the Federal Reserve and the Treasury were increasing consumer lending to buy up securities that were linked to loans and credit card.

The day closed with Wall Street falling another 132 points from 6792 to 6660. This is new low. We also saw the S&P 500 fall over 17 pips from 705.9 to 688.38. This is the first time that the S&P500 are closed below the 700 mark since October 1996, and it is frightening to predict what will happen next. The US markets are now at a new low, and as I said yesterday it’s really hard to say any good news in the stock markets. We also saw the FTSE 100 fall over 80 pips from 3595 to 3513. We also see similar downward trends in both the German Dax and the Nikkei 225.

There was encouragement from US President, Barack Obama who is trying to restore some confidence in the economy by telling investors that stocks are under valued and are a good deal to buy. I doubt that we are going to see any renewed confidence in the markets because all news seems to be bad news now, and the recovery is nowhere near. The outlook for the economy is generally very weak and the markets still do not look like they have hit their lowest levels. It will be interesting to see how much further they can fall.

Until next time

Kind Regards,

Robert Stewart