The last few days has seen it’s fair share of waves on the equity seas; the U.S stock indices closed in the red yesterday (due mostly to dissapointing ISM numbers according to speculation) and the Nikkei 225 in Tokyo butchered 4,18% of it’s value during the night here in Europe.
Surprisingly (to me) the Euro indices closed some distance into the green today, and as of right now the S&P500 is up about 1% in New York. It isn’t a far stretch from here to think that Europe will open in the green tomorrow as well, but you’ll learn quickly that in this game there are no guarantees.
I’m undecided what i should think about tomorrow; probably it’s better to stay off the market for a few days to get some sort of indication about which direction we’re heading.
The U.S Federal reserve today announced that it will taper back another 10 million of asset purchases; from it’s previous 75 to 65 million USD as of todays FOMC meeting. Market Watch has more on this story here.
The end of 2013 is approaching with leaps and bounds and i don’t think i’m overstating it if i say that from a macro-economic perpective this year has provided plenty a gift for anyone who’s into the western equity markets. The Euro Stoxx 50 is up 20.8% this year while the S&P 500 in the states has bloated by a hefty 30.2% so far. Great numbers by any standard. And top it all off the U.S Federal Reserve (finally) started it’s tapering of asset purchases last week, something that the markets in general reacted to with great festive joy (much suitingly for the time of year!).
The prospects for 2014 in world wide economic terms indeed look promising pretty much all over. I’m not going to make any predicitions about the coming year for myself or anyone else, i’ll settle with the good vibrations that are all over the business pages these days.
Before this year comes to an end however, it’s Christmas celebrations in the books for me starting tomorrow! I wish anyone takes the time read this a very Merry Christmas and a happy new year. May 2014 be prosperous for you and may all your dreams come true!
Can’t get enough of Zombies after watching the latest episodes of The Walking Dead and World War Z at the Cinema this summer?
Look to Wall Street for your next Zombie fix! Well, according to Brett Arends’s Roi over at Marketwatch anyway, who has written a five Point survival guide to the mindless walkers on Wall Street. A somewhat amusing read, really. I do love The Walking Dead. B-)
The Wall Street Journal’s Howard Gold writes that Investors and media need to listen less to Federal Reserve chairman Ben Bernanke. I can’t but agree; it’s ridiculous how this man’s every single Word either makes or breaks the Equity markets.
This article is well worth reading, as it shows how volatile the stock markets are and how little fundamental financials actually affect the price of a stock. Market sentiment and pack behavior are king in this World!
For the second day this week Japan’s Nikkei index broke the negative 3% barrier and closed at -3.26% after a speech by prime minister Shinzo Abe that instilled negative sentiment in the market.
And yes, the fear of the U.S Federal bank tapering back on asset purchases that so far has managed to stabilize markets world wide is yet again said to be a factor as well. Anyone else than me tired of seeing markets pulling back almost daily on a rumor that’s been floating around for the second week now? Sheez…
The leading indices in Asia all closed in the red, with Tokyo in a clear lead with said -3.26%.