Economy worries hit stock market and oil price

Graham_Devon

Concerns about the US economy and the potential spread of debt problems in Europe has led to large falls in many stock markets.
US and key European markets lost more than 2% while those in Spain and Portugal fell by more than 5%.
In the US, worse-than-expected levels of unemployment benefit claims added to worries about the pace of recovery.
Analysts said the negative sentiment was largely behind the price of US crude oil falling by about 5%.

http://news.bbc.co.uk/1/hi/business/8499506.stm

So is this a blip? Or is reality starting to set in?

We all know reality will have to take hold one day, so is this the start?

purch

so is this the start?

No the start was in late 2008 (in case you missed it)

Graham_Devon

I wish I could be as clever as you purch!

Asheron

O I'm so shocked!

Radiantsoul

The stock market has really moved much since November it seems.
It suspect it will wobble around 5000 points for a while.

sabretoothtigger

It is a major correction I think but I dont think we'll crash to new lows if thats the worry.

A reset of 20% would be quite healthy, we know from the housing market that when prices only move in one direction its sign of a bad market


The news doesnt really cover it, the jobs were already bad when stocks were still rising. The reason its falling is because it ran out of steam, people saw they couldnt feasibly squeeze any more money out so now they are selling up.

Markets always overshoot and the sooner it falls back the sooner we can go back up again.

Analysts said the negative sentiment was largely behind the price of US crude oil falling by about 5%.
Brent crude fell by $4.31 to $72.67 a barrel in New York having gone as low as $71.47. In London, Brent crude slipped by $4.27 to $71.65 a barrel.

Some of this will be positive, a falling oil price is a natural kind of stimulus for economies. Prices should self adjust if its working properly


Non farm payroll job figures are out for USA tomorrow and some of the losses could reverse then

The falls in European and US markets were similar to those experienced in mid-January, when China's attempts to curb its growth brought concerns that other world economies would feel the impact.

Its part of the same movement, the support for prices will rest around last Julys records I think

Generali

The markets have had a gentle reminder that the Government borrowing huge amounts of output from tomorrow to use today isn't necessarily a painless process.

Having said that, the FTSE trading on a forward pe of < 10 makes shares look very good value if you think a painless exit from recession is possible.

chucky

Graham_Devon wrote: »

http://news.bbc.co.uk/1/hi/business/8499506.stm

So is this a blip? Or is reality starting to set in?

We all know reality will have to take hold one day, so is this the start?

how many times have you asked is this the start when the stock markets drops?

the markets have been going up and they're now re-adjusting prices.
as Generali is implying - maybe too much confidence that isn't there had been priced in previously.

peter999

Graham_Devon wrote: »

http://news.bbc.co.uk/1/hi/business/8499506.stmWe all know reality will have to take hold one day, so is this the start?

I don't think politicians are up to the job, don't think they know what they're gonna do.

Will just happen by crisis management & seismic shocks, as fault lines pull things apart.

peter999

chucky

chucky wrote: »

how many times have you asked is this the start when the stock markets drops?

but in saying that Graham - they are taking a massive battering today...

i only wish that it was April so that so more could be bought for my ISA!

ICAP :eek::eek::eek:

mr_fishbulb

chucky wrote: »

i only wish that it was April so that so more could be bought for my ISA!

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