openPR Logo
Press release

Economy Crisis: World Governments to the rescue?

04-07-2009 06:24 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Regent Markets Group

US markets closed Friday up around 1%, which in the context of recent volatility is not really much to write home about. Recently, US markets have had an average trading range of 2% per day, which is actually down on the recent peak of 4% per day. In volatility terms, things seem to be quietening down, and this is usually a positive for equities which loath the unknown more than bad news. When the economic data becomes more predictable, markets can move to price in bad news, as appears to have happened today.

Markets finished up on Friday, which is not what one would have automatically expected from the release of the highest US unemployment numbers for 25 years. Wednesdays ADP job numbers gave traders a reasonable steer on Fridays data, so traders weren't entirely shocked by the announcement. Fridays job numbers were very weak though, theres no getting away from that. What is most concerning is acceleration in unemployment. Anecdotally many people across the world have been saying the same thing that the shocking thing about this global recession is how quickly things have developed to point of near depression levels. In the US 5.1 million jobs have been lost since the recession started, but two thirds of these happened in the last 5 months. It would seem that this has been a similar pattern across the world. With Thursdays agreement from the G20 to inject huge sums of cash into the global economy, world governments are hoping to stem the speed of the collapse at the very least.

Elsewhere, the long awaiting FASB announcement on Mark to market accounting rules were released with positive implications for the banks. Some analysts believe the rules changes could increase banks net income by 20% or more. In addition to this, news that the UK government has agreed to back some of RBS business loans and the decision by Barclays to not participate in the governments asset protection scheme made it a good week for financial overall.

There was mixed news on the UK housing market with the Nationwide saying house prices rose nearly 1% in March, but Halifax saying that prices dropped 1% in March. The differences underline the volatility in month to month housing data.

The ECB ruffled some feathers by cutting rates in the eurozone by just 0.25% to 1.25. Trichet commented that rates could still go lower in coming months, but the ECBs adoption of a ZIRP policy is noticeably slower than the UK and US. Although businesses would have appreciated lower rates, investors seem to have interpreted the ECBs action as meaning that the European economy is in better shape than many thought. The news fueled a rally in the euro against the yen and dollar, but it is the pound that was last weeks strongest performer overall. Sterling rose against all major currencies over last week.

Next weeks economic highlights include rate decisions from the Bank of Japan and Royal bank of Australia on Tuesday, followed by rate statement from the MPC on Thursday. Analysts are currently expecting no changed from any of these meetings. In addition the minutes from the last FOMC meeting are released on Wednesday. Thursday also brings UK PPI and US trade balance figures. Friday is a bank holiday for most countries.

Gold has remained in a relatively tight trading range over the last month or so a break out could be overdue.

A One Touch trade predicting that Gold/USD will hit $850 at any point during the next 9 days could return 209% at BetOnMarkets.

BetOnMarkets is the world's leading Fixed Odds Financial Trading website. Fully licensed and regulated, BetOnMarkets handles around 250,000 trades per month from over 100,000 clients. Over 21 million trades have been processed since inception in 2000. The multi-award winning BetOnMarkets allows traders to speculate on the movement of the worlds' major financial markets, up, down or sideways. Tax free (always check with a qualified professional). Trades can be bought from 1-25,000 GBP/USD/EUR/AUD.

Name / Pen Name: Karen Yap

Address:
Regent Markets (IOM) Limited
3rd Floor, 1-5 Church Street,
Douglas, Isle of Man IM1 2AG,
British Isles.

Phone: 448003762737

Email: editor@regentmarkets.com

URL: http://www.betonmarkets.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Economy Crisis: World Governments to the rescue? here

News-ID: 74873 • Views: 667

More Releases for Mark

Impressionist landscape artist - Mark Briscoe
I am Mark Briscoe, Bristish artist well established in the field of Chinoiserie furniture decoration and restoration of antique lacquer. But the techniques for fine art easel painting in the wonderful manner of the old masters is something which I have been exploring in great earnest over the last two years as a long cherished desire. And while I cannot claim to have come anywhere near their heights, I have
Intellias Reaches 1000-Employee Mark
On June 4, 2018, Intellias welcomed its 1000th employee. The company is proud to reach such a high bar and sees this number as a new starting point to reaching 2000 people onboard and landing in the top 10 Ukrainian IT companies by headcount. As of today, Intellias has three development centers in Lviv, Kyiv, and Odessa as well as a representative office in Berlin. The 1000th employee will join
Mark de Clive-Lowe
On Thursday, May 3rd, 2012 internationally known musician Mark de Clive-Lowe (MdCL), will take the stage at The Beehive, located in Boston, MA, for a special performance of his revolutionary sound. Be there from 9:30PM to 1:00AM as MdCL plays impromptu remixes created from scratch, on the spot using drum machines, keyboards and special effects. He will start with a jazz-oriented set and crank up the intensity with his signature
Trade Mark Act
Neoinfo Solutions Pvt. LTD is an IT based company with its main office located in Jaipur(rajasthan). Our expertise lies in the domain of Website Designing development portal development,maintenance software consulting, designing development , implimentation, training and maitenance.In the journey of achieving our combined business and social goals we have kept in mind and have always strictly followed all our data security policies to ensure that all informations of our clients
Trade mark Act
Neoinfo Solutions Pvt. LTD is an IT based company with its main office located in Jaipur(rajasthan). Our expertise lies in the domain of Website Designing development portal development,maintenance software consulting, designing development , implimentation, training and maitenance.In the journey of achieving our combined business and social goals we have kept in mind and have always strictly followed all our data security policies to ensure that all informations of our clients
Facebook Dumps Mark Zuckerberg
INDIANAPOLIS—Facebook pulled the plug on Indiana bankruptcy attorney Mark Zuckerberg’s internet Facebook account on Monday, citing false identity as the reason. Obviously, Indianapolis attorney Mark S. Zuckerberg has the same name as Facebook founder Mark S. Zuckerberg, but you would expect Facebook, the internet social-media giant, to have the capability to accommodate two or more people with the same names. Attorney Mark Zuckerberg said, “I was originally denied an account with