Major Markets in a Tailspin
For months the major stock markets of the world have had setback after setback. It all came to a head yesterday with Europe and Wall Street falling dramatically, the latter closing 4% weaker in the worst 9 day slump since 2009.
Many investors now screaming recession and running the other way, with many opting to exit the market altogether and sitting on the sidelines hoping for better times.
Markets around the world also closed lower, echoing the sentiment of Wall St:
| US: – 4.31% | Portugal: – 3.26% |
| UK: – 3.43% | Switzerland: – 3.61% |
| Germany: – 3.4% | Netherlands: – 3.9% |
| France: – 3.9% | Sweden: – 4.6% |
| Italy: – 5.16% | Finland: – 5.05% |
The reaction to today’s market tumble of 4% in the U.S – is likely to be set at about 8:30 this morning. When the government releases its July ‘11 unemployment figures. A favorable or better than expected report might send buyers back into the market, however, a bad report is likely to send markets into another spin with fears of a double-dip recession on the horizon.
Consumer sentiment in the U.S had already fallen in July to its lowest in almost two years on deepening concerns about the unemployment rate and stagnant wages, and could now deteriorate even further.
Despite that gloomy outlook, it is likely that the scared money of the world will decide that the United States — and its stock market and short-term Treasury market — are the least scary of all the places they can be.