Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19
The Narrative About Gold is Changing Again - 2nd Dec 19
Stock Market Liquidity & Volume Diminish – What Next? - 2nd Dec 19
A Complete Guide To Finding The Best CFD Broker - 2nd Dec 19
See You On The Dark Side Of The Moon - 2nd Dec 19
Will Lib Dems Win Sheffield Hallam From Labour? General Election 2019 - 2nd Dec 19
Stock Market Where Are We?  - 1st Dec 19
Will Labour's Insane Manifesto Spending Plans Bankrupt Britain? - 1st Dec 19
Labour vs Tory Manifesto Debt Fuelled Voter Bribes Impact on UK General Election - 30th Nov 19
Growing Inequality Unrest Threatens Mining Industry - 30th Nov 19
Conspiracy Theories Are Killing This Nation - 30th Nov 19
How to Clip a Budgies / Parakeets Wings, Cut / Trim Bird's Flight Feathers - 30th Nov 19
Hidden Failure of SIFI Banks - 29th Nov 19
Use the “Ferrari Pattern” to Predictably Make 431% with IPOs - 29th Nov 19
Tax-Loss Selling Drives Down Gold and Silver Junior Stock Prices - 29th Nov 19
We Are on the Brink of the Second Great Depression - 29th Nov 19
How to Spot REAL Amazon Black Friday Bargains and Avoid FAKE Sales - 29th Nov 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

Credit Crunch To Spill Over The World

Stock-Markets / Credit Crisis 2008 Apr 07, 2008 - 01:22 PM GMT

By: Regent_Markets

Stock-Markets Despite slew of negative headlines, stock markets around the world still managed to close the week up around 4%. The FTSE and CAC managed 4.7% and 5.4% gains while the Nasdaq 100 was the pick of the US markets, closing the week up 5.2%. The rally was sparked by Lehman Brothers announcing the sale billion of dollars worth of shares late on Monday night.


European financials, such as Deutsche Bank and Barclays led, the bullish charge from the start, ironically helped by the news that UBS would write
down CHF 19 Billion. Despite the large sums mentioned, many have interpreted the write down as a sign that the worst of the banking crisis is over. Credit
markets marked down the risk of default from UBS after being impressed with the bank's capital raising efforts. The fact that Lehman's share sale was
significantly over subscribed certainly helped push things higher

However, markets encountered stiffer headwinds for the rest of the week as more bad news continued to flow around the credit crunch. The Bank Of England
Credit Conditions Survey warned that unsecured credit availability is expected to fall somewhat further, and secured credit availability fall even
more. Central bankers may have calmed the credit crunch at its source, but the length and depth of the aftershocks are now the biggest danger to
domestic economies. With mortgage companies pulling deals almost daily, it may simply be a matter of time before consumers crack.

Ben Bernanke may have subdued the credit crisis (for now) with his dramatic interventions, but the possibility of the crunch spilling over the wider economy remains. He commented that much depends on the rate of decline in US housing values from this point onwards. It is arguable that the same could be said of the wobbling UK and European housing markets. For now though, markets are encouraged by the Feds comments that the US economy will strengthen in the second half of 2008, and grow at or above trend in 2009.

The much-anticipated US payroll report came in not only lower than last  month, but even below consensus estimates. This is the third month in a row that the payroll report has not only shown a decline, but has been weaker   than consensus estimates. The only other time this happened was spring 2001, which retrospectively, marked the beginning of the last brief US recession  You might expect global equity markets to fall heavily on the news, but they in fact managed to hold to all or most of their gains for the week.

This could be an indicator that bad news is being priced into stock markets  at the moment. Central bankers and politicians on both sides of the Atlantic
are doing their best to positive in the face of the stream of dismal  economic figures, but traders don't seem fooled. It appears they may already  be pricing in a recession in the US and at least a severe contraction in the  UK.

This week starts off slowly but quickly builds momentum. With no top line announcements on Monday, Tuesday's release of the last FOMC meeting minutes,
will throw markets from any slumber they may be experiencing prior to this. The general consensus is that US rates have further to go, but an influential
Washington think tank has caused many to question the depth of these cuts, saying that the Fed is unlikely to cut below 2%. On Wednesday UK industrial
production figures will be released in the morning.

The week reaches a crescendo on Thursday with the release of six top tier economic announcements. First up are UK and European interest rate decisions.
A Quarter point cut is ‘odds on' for the MPC according to some analysts. Still, the ECB is expected to hold their ‘inflation fighting' stance, and
keep rates the same. The ECB president will speak following the release of their decision. At the same time, we receive US Trade balance figures, and US
unemployment claims. It will be one hectic lunchtime for European traders. To top off an already packed day, Fed chairman Bernanke is due to speak later in
the afternoon.

With a slow start to the week on the economic news front, Traders at BetOnMarkets.com foresee that there's a reasonable chance that last week's
momentum could spill over to the start of this week. A One Touch trade predicting that the Nasdaq Composite Index will touch 2395 at any time during
the next 10 days could yield 15%.

By Mike Wright
Tel: +448003762737
Email: editor@my.regentmarkets.com
Url: Betonmarkets.com & Betonmarkets.co.uk

About Regent Markets Group:   Regent Markets is the world's leading fixed odds financial trading group. Through its main multi-awarding winning websites, BetOnMarkets.com and BetOnMarkets.co.uk, it has established itself as the leading global provider of a unique, powerful way to trade the world's major financial markets. The number, length and variety of trades available to our clients exists nowhere else in the world.   editor@my.regentmarkets.com Tel  (+44) 08000 326 279

Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Do your own due diligence.

Regent Markets 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

6 Critical Money Making Rules