Economic reports from both Canada and the United States were better than expected Friday, but investors weren’t buying it, sending stock markets down on both sides of the border.
Amidst worries about fiscal turmoil in Europe and dropping technology stocks, stock markets in the U.S. dropped Friday, pushing the S&P 500 to its worst monthly decline since February 2009.
China moved to rein in lending at its big banks, and Japan’s credit rating has been cut to negative from stable by Standard & Poors.
Amidst worries about fiscal turmoil in Europe and dropping technology stocks, stock markets in the U.S. dropped Friday, pushing the S&P 500 to its worst monthly decline since February 2009.
China moved to rein in lending at its big banks, and Japan’s credit rating has been cut to negative from stable by Standard & Poors.
China moved to rein in lending at its big banks, and Japan’s credit rating has been cut to negative from stable by Standard & Poors.
Robert Prechter, who predicted the crash of ‘87, is calling for another big leg down for stocks as part of a bear market that began in 1999. He was previously quoted by Reuters as saying that the 2007-2009 crisis in the markets and the U.S. recession presaged a severe longer economic slump. He told Reuters that he sees the economy struggling for years to come, suggesting that we may have begun the next phase of the bear market. He further indicated that the S&P 500 could drop below the 666 mark hit in March from 1092 at the close last Tuesday.
Meanwhile, the S&P/TSX composite index has fallen six percent since eclipsing the 12,000 mark earlier in the month as commodities, including gold and oil, have softened, and the Canadian dollar has suffered too. Who could have guessed? The Big Dogs have been calling for a weaker Canadian dollar for quite some time now (translation, stronger USDCAD pair).
Peter Bain
www.forexmentor.com
This entry was posted
on Tuesday, February 2nd, 2010 at 1:10 pm and is filed under Blogroll.
You can follow any responses to this entry through the RSS 2.0 feed.
Responses are currently closed, but you can trackback from your own site.
