But while there has been some spillover
of equity market weakness, the difficulties in credit markets at this stage have been mainly confined to the industrial countries.
Not exact matches
In past issues
of The Boeckh Investment Letter (subscription required), Tony and Rob Boeckh recommended using the current bout
of stock -
market weakness to rebalance toward
equities.
At the moment, there's a little bit
of support from weak
equity markets, but we see further
weakness coming through,» Daniel Hynes, senior commodity strategist at ANZ, told CNBC.
Elsewhere in forex
markets, it's a relatively calm day, with a slight correction in the risk - off trade that we have been monitoring for weeks, as the yen is a tad lower today against all
of its major peers, while the Dollar couldn't gain on risk - on currencies, despite the
equity weakness.
Although the Euro's dip today is helping
equities in Europe somewhat, the pronounced long - term
weakness in Asian and European
markets still persists, and the deterioration among the leaders
of the rally, like the Nasdaq, is another sign that the correction will continue.
We would infer a much higher probability
of an economic contraction if current economic data was coupled with fresh
equity market weakness.
Among the evidence that would shift our expectations in this regard would be: material
equity market deterioration, further
weakness in regional Fed and purchasing managers indices, a slowing in real personal income, a spike in new claims for unemployment toward the 340,000 level, an abrupt drop in consumer confidence about 10 - 20 points below its 12 - month average, and at least some amount
of slowing in employment growth and aggregate hours worked.
Baker expects that the
weakness from the housing
market, which is already spreading over to other sectors
of the economy, will have an even larger impact in 2007 as consumers lose the ability to borrow against dwindling home
equity.
Accordingly, a year - over-year increase in new claims
of about 20 % (which would currently equate to a level
of about 340,000 weekly new claims) would create a significant concern
of a new recession in progress, particularly if coupled with other evidence such as
equity market weakness and slowing growth in real personal income.
Among the explanations that have been put forward are the increased credibility
of central banks in controlling inflation (inflation rates remain below 3 per cent across the developed world), the low level
of official interest rates in the major economies reflecting low inflation and the continuing
weakness in some economies, a glut
of savings on world
markets particularly sourced from the Asian region, and changes to pension fund rules in some countries which are seen as biasing investments away from
equities towards bonds.
If anything, recent
weakness — particularly compared to the relative strength
of the US
market — has only served to strengthen the value case for European
equities, in our view.
These funds have been marred by two major
weaknesses: continued uncertainty in Europe and the extended under - performance
of emerging
markets equities.
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Rising Global
Equity Markets Pressure Dollar Overnight Stronger global equity markets are contributing to the weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data and the odds of an interest rate increase by the Federal Re
Equity Markets Pressure Dollar Overnight Stronger global equity markets are contributing to the weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data and the odds of an interest rate increase by the Federal R
Markets Pressure Dollar Overnight Stronger global
equity markets are contributing to the weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data and the odds of an interest rate increase by the Federal Re
equity markets are contributing to the weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data and the odds of an interest rate increase by the Federal R
markets are contributing to the
weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data and the odds
of an interest rate increase by the Federal Reserve.
However, the overall
equity market has you a bit nervous and has recently begun to struggle, showing signs
of weakness.
Stronger global
equity markets contributed to the
weakness in the Dollar early in the trading session as traders once again increased demand for more risky assets after reassessing U.S. economic data and the odds
of an interest rate increase by the Federal Reserve.This morning, traders drove
equities higher after taking a look at the U.S. em...
Stronger global
equity markets contributed to the earlier
weakness in the Dollar as traders once again increased demand for more risky assets after reassessing U.S. economic data and the odds
of an interest rate increase by the Federal Reserve.
But
equity analyst Meyer Shields
of Stifel Nicolaus slapped the dreaded sell on Warren Buffett's baby Thursday, citing economic
weakness and the potential «double whammy» that the recent stock
market correction might mean for Berkshire's
equity portfolio and derivative positions.
«Rising oil prices, additional correction in the
equity markets and a further tightening
of credit could trigger some economic
weakness,» Dr. David Leareah told delegates attending NAR's annual conference in San Francisco in November.