The Lapsed in August was too weak for U.S. stock indexes retreated with between 4 and 6 per cent. So this August, has become the most negative since 2001. He is also the first August in which the exchange does not take growth for the past five years. Session last month was filled with twists, the indexes several times changed its direction. Ultimately, Dow Jones Industrial Average rose 0.05 percent to 10,015 points, while during the session was sunk to below 10,000 points. For the whole month, Dow Jones fell 4.3 per cent. Index of companies from Nasdaq Stock Exchange lost 0.3 percent to 2,114 points today, the S & P 500 rose 0.04 percent to 1049 points. Both the index in August fell by 6.2 and 4.3 per cent. Today abrupt change and bring significant negative sentiment report from the last Federal Reserve meeting. The reason for negative attitudes given the news that the American economy must “invest significantly” to be contemplated new aid from the Federal Reserve reported Wednesday. The heads of the central bank would consider measures for additional incentives if the economic prospects deteriorate significantly, “said a transcript of the meeting of the Fed held on August 10.
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Worsening outlook for the global economy brought decreases in almost all stock indexes in Asia and Pacific region in August, while the yen fell against the price of dollars for the fourth consecutive month. The main Japanese stock measure of the Nikkei 225 ended the last session this month with a sharp decline from 3.6% to 8 824.06 points and the loser became the index in the region in August. Its value has fallen by 7.5 percent since July, after the strong appreciation of the yen, further darkened the outlook for the Japanese economy. In this month showed that gross domestic product rose only slightly to 0.4 percent on an annual basis aligned to the base in the second quarter. The Nikkei 225 fell by over 16% since the beginning of this year and catching up in this respect the Chinese Shanghai Composite, which fell by 19% during the first eight months of the year. Shanghai Composite was one of the losers in the index in the world this year because of the expected withdrawal of the Chinese government incentives for the economy. Unlike last August, however, who was one of the worst in the history of the month Chinese stock markets, this proved to be neutral. Shanghai Composite lost 0.5% to 2 638.80 points in today’s session and stood near the levels at the end of July. However, the Nikkei 225 fell to its lowest value for the last 16 months.
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The U.S. indexes fell on Monday due to growing concerns among investors about the state of the economy before the publication of monthly unemployment data on Friday. “The market is experiencing a nervous breakdown, the overwhelming opinion is that business or must begin to hire people or need a new cash injection to stimulate the economy,” said Bert Whyte investment director of LPL Financial. After losing more than 140 points in afternoon trading, Dow Jones Industrial Average closed down by 1.39 percent to 10,010 points. Almost all blue chips lost positions with Intel Corp. split over 2 percent after the company, a world leader in the manufacture of chips said it would pay 1.4 billion dollars for the acquisition of Germany’s Infineon Technologies AG. Shares of biotech Genzyme Corp. rose after the company rejected a proposed takeover by pharmaceutical giant Sanofi-Aventis in the amount of 18.5 billion dollars. S & P 500 fell 1.47 percent to 1049 points while the Nasdaq Composite lost 1.56 percent to 2120 points. Earlier Monday, Commerce Department in Washington announced that the country’s consumption increased by 0.4 percent in July – the strongest for the last four months, while incomes rose by 0.2 percent. On Friday the government will announce employment data in August – data that Wall Street regarded as a barometer for the economy.
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The U.S. shares fell today as a Standard & Poor’s 500 this fall is the fifth of six sessions. Reason for the deletion of the initial rise on Wall Street were concerns about the fiscal stability of Spain. The S & P 500 lost 0.8 percent to 1,047 points, Dow Jones Industrial Average fell 0.7 percent to 9986 points, and Nasdaq Composite – by 1.1 percent to 2119 points. Spanish newspaper El Economista reported that a Spanish court has ruled that some of the methods the government to collect taxes are illegal, leading to speculation that the country will have difficulty in reducing its deficit. After the court decision may be delayed collection of several hundred million “tax. The decline in U.S. shares and contribute the communication branch of the Federal Reserve in Kansas City to slow production in the region in August. Investors are expected and planned for this Friday speech by Fed Chairman Ben Bernanke, who recently set the economic conditions as “unusually uncertain.” Earlier in the day shares moved in positive territory after data larger than expected drop in initial claims for unemployment benefits.
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The main stock indexes in the U.S. managed to overcome successive disappointing data on housing markets in the country and made up in the middle of today’s volatile session to complete the trade increases. the decreased stock prices of the previous four sessions failed to overshadow ultimately decrease the credit rating of Ireland, which prompted a sell off of stock exchanges in Asia and Europe. The index of 30 of the largest and most liquid stock companies in the U.S. Dow Jones Industrial Average rose 0.2 percent to 10 060.06 points, recording its first winning session of last Thursday. The broader S & P 500 rose 0.3 percent to 1 055.33 points while the Nasdaq Exchange index of all companies Nasdaq Composite rose more appreciably by 0.8% to 2 141.54 points. All of the index started the session with large reductions because of sharp drop in sales of new homes in the U.S. in July reached its lowest level since statistics are kept during the last 40 years. The Energy companies were among the losers during today’s session, while the construction and extractive sector rose. Worse was the presentation and the financial sector, shares of Wells Fargo, Citigroup and Morgan Stanley fell by between 0.2% and 0.8%. The reason for this became poor sales figures of new and existing homes occupied this week, because they are troublesome for banks that have large investments in mortgage-backed Securities in their accounts.
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The American economist Nouri Roubini predicted that growth in the U.S. will be “well below 1% for the third quarter and said that the chances of a new recession are 40 percent. Roubini, who is chairman of Roubini Global Economics LLC suggests that the government will revise the data for growth in the second quarter, cut them into 1.2%. “All directional winds from the first half of the year, now turned against us,” he said giving example of the effect of the government plan for 814 billion dollars to stimulate the economy and tax credits for families buying property for the first time. As the best scenario seems Roubini “anemic growth” for many years, indicating the need to reduce debt levels of households, governments and financial system as a whole. “With the sluggish growth of up to 1% risk stock markets suffer sharp downward correction. At the same time credit and interbank spreads have increased and increased global risks, “he said. “Thus, the negative signals sent between the real economy and markets for risky assets can easily lead to double economic recession. Roubini warns that the two recessions will occur immediately one after another.
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Most Asian stock indexes began the new week with decreases because of speculation that the recovery of the global economy remains stuck, causing problems for export-oriented companies. The regional MSCI Asia Pacific Index retreated minimum to 118 points. In general bearish sentiments were particularly strong, and many of the markets decreases were minimal. The ratio of winners / losers for companies in the index was 3:2. The exchange in Tokyo the Nikkei 225 retreated by 0.7 per cent to 9117 points. With a major contribution to falls were companies exporting to the U.S.. Analysts say that the reason why expectations for disappointing data on gross domestic product of U.S., to be published on Friday. With the fall session and completed in Hong Kong where the Hang Seng fell 0.44 percent to 20,889 points. China’s main index CSI 300 fail to hold the increase, which moved throughout the session and ultimately ended with 0.07 per cent lower on Friday at 2896 points. The South Korean Kospi fell 0.4 percent, nearly as many losses and the leading index in the Singapore Straits Times.
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The U.S. shares withdrew part of its losses in late trading Friday, but closed mostly negative territory. Last week was a second consecutive negative changes, but volumes remained low in the middle of the season. The index of the largest and most traded companies, Dow Jones Industrial Average ended the session with a retreat of 0.58 percent to 10,212 points. S & P 500 fell 0.37 percent to 1071 points, and Nasdaq Composite managed to win the minimum 0.04%, reaching 2179 points. “We have seen the realization that the economy in the second half of the year – and hence corporate profits – will be more modest performance than many people thought six months ago, told Adrian Krondge, partner and head of investment in subsidiary company’s asset management Balentine. Some investors remain optimistic, saying that the market has focused too much in short-term unemployment figures. “We went from the worst recession we’ve experienced in modern history,” said Roy Williams, CEO of Prestige Wealth Management. In his soon expected improvement of data on unemployment and earnings in retail trade. Among the most decreasing positions on Friday was that the computer giant HP (-2,26%). He said good growth rates of profits and sales for the second quarter. Losses were seen in a number of energy companies, after oil closed with a decline of 1.3 percent on Friday, increasing its weekly decline to 2.6 per cent. Raw material price of New York Mercantile Exchange reached 73.46 dollars per barrel in September with delivery.
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The U.S. banks operating on Wall Street, prepare for declining revenues from intermediation in financial markets this year after the third quarter started badly for them. Economic insecurity in the world and the problems with public debt in Europe led to a decline in market activity in July, summarizes the Financial Times. Managers of banks reported that volume and profits in the last month were below those even in half-heartedly second quarter, hedge funds have been especially cautious in opening up large positions in equities and debt. Trade was woke up follow the results of stress tests of European banks, but deepening fears of a final end to the boom in trade (assist the profits of financial institutions after the financial crisis) has prompted some banks to consider reducing the traders. According to a senior banker July has been a very bad month for trade. “If in August and September is not a major improvement, banks will be forced to cut jobs,” he said. Shrinking profits from trading the financial markets highlights the growing importance of commercial and consumer banking, which improved in parallel with the economy. The heads of Wall Street analysts and give poor results in July as the passivity of investors and the fierce competition among banks. Because of the low activity during the month many banks did not reach set targets for income from financial intermediation as for bonds and currencies – major source of profits recently, and in shares.
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The stock exchanges in Asia and the Pacific fell for the first time this week after growing concerns among investors about the recovery of U.S. economy prompted them to seek less risky assets like the yen, the dollar and government bonds. Shares of Japanese exporters have suffered most due to the appreciation of the yen to its strongest level against the dollar for the past 15 years. A strong yen makes goods of local producers more expensive on foreign markets and reduce their earnings after conversion into local currency. Shares of Canon and Sony fell more than 3 percent of the exchange in Tokyo for expensive yen. Shares of Toyota and Honda in turn lost around 2% because data for the decline in U.S. sales in July. Chinese mining companies fell after a decline in metal prices. Regional stock measure MSCI Asia Pacific, which oversees securities markets in ten Asian countries, Australia and New Zealand, losing 0.6 percent, disrupting its good performance from the previous two days, which brought him an increase of 2.2 percent. Most now come down shares of companies and consumer technology sector in its composition. Both groups decreased by more than 1%. MSCI Asia Pacific, however, reduced the loss of its highest point this year, celebrated on April 15, half to 6.3 percent.
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