Skip to comments.Major world markets set to open after U.S. credit downgradeBy
Posted on 08/07/2011 5:07:01 PM PDT by Presbyterian Reporter
Markets react to ratings cuts in the U.S.STORY HIGHLIGHTS NEW: Investors are weighing both the downgrade and the Investors are waiting anxiously for major world markets to open for Monday trading, following the U.S. credit rating downgrade to AA+ from the top rank of AAA.
Stock futures tumbled more than 2% at the start of electronic trading Sunday, signaling a nasty investor reaction According to data from the Chicago Mercantile Exchange, S&P 500 futures fell 30 points, or 2.7%. Nasdaq-100 futures contracts slipped 54 points, or 2.5%. Dow Jones industrial average futures were 292 points, or 2.6%, lower.
The futures were the first gauge of investor sentiment following Friday night's downgrade, removing the United States' AAA status for the first time. They give an indication of how investors will react when regular-hours U.S. trading begins at 9:30 a.m. ET Monday.
U.S. futures trading began at 6 p.m. ET, two hours before the opening of the key Tokyo stock market.
Also on Sunday evening, Treasury Secretary Tim Geithner was expected to take part in a conference call with representatives of the other G7 nations to discuss the downgraded U.S. credit rating, a G7 official told CNN.
The G7 nations are the United Kingdom, France, Germany, Italy, Japan, Canada and the United States.
Middle Eastern markets, the first to open since the downgrade, were sharply lower on Sunday. Israel's market temporarily halted trading at one point and finished down more than 6%, while the Dubai Financial Market General Index fell 3.7%.
The General Index on the Abu Dhabi Securities Exchange was down more than 2.5%, while in Saudi Arabia, the Tadawul All-Share Index dropped nearly 5.5% in trading Saturday.
U.S. officials are talking to a "wide range of investors" about the downgrade by the credit agency to try to "mitigate"
(Excerpt) Read more at edition.cnn.com ...
The European Central Bank, in a bid to calm markets, said on Sunday it would implement a bond-purchase program and welcomed the announcements by Italy and Spain on new measures meant to reduce their deficits. It told the governments of those countries that a "decisive and swift implementation" of reforms is "essential."
Dow futures are down over 200 points.
The nations have placed their faith in their paper gods...and the strong delusion sent causes many to follow their blind leaders.
GOLD is up $35 to $45 in early trading. I wonder if the EURO printing press has anything to do with gold’s price increase?
so I think I go print some money to pay my debts. Fair enough?
Streaming play by play numbers:
8pm est: DJF at Negative -286 - 3%
Great link - thanks. What’s your best guess for tomorrow?
One of the things that bothered my in the last two years was the fact the DJIA went from 6547.05 in early March 2009 all the way to 12810.54 just over two years later--too fast a rise, in my humble opinion! I'd like to see it "correct" to somewhere between 9250 and 10,000 before it steadily starts rising again. There will be a sell-off to this range, mostly from fund managers cashing on the rise to that 12810.54 inflated figure.
It should be noted that many companies are sitting on HUGE piles of liquid assets, mostly as a hedge against continuing instability in the economy. Why do you think Apple is sitting on US$76 BILLION in liquid assets held in banks in the USA and in foreign countries? If the economy goes into a double-dip recession, these companies are going to need that cash reserve to protect themselves.
Right now, I had been seriously looking at trading in my 1998 Honda Civic HX CVT coupe for a 2012 Hyundai Sonata GLS sedan. But with the unstable economic situation, I may have to delay this until the economic situation improves--a warning to you, President Obama!!
The current economic situation is making all the big investors "cash out" to lock in their gains from the March 2009 bottom. As a result, I see it settle between 9250 and 10,000, and then the bargain hunters with a lot of cash will move in and snap up a lot of stocks "on the cheap." Unfortunately, with today's SEC reporting requirements, you can forget about things like Joseph P. Kennedy, Sr. depressing stocks to unbelievable lows in the early 1930's, buying them for a song, and selling them several years later at huge profits. Why do you think he was able to pay for substantially expanding the main building of the Kennedy compound at Hyannis Port, MA in the 1930's?
Just an anecdotal aside, the "manage investments" on line function for 401K's with Principal Mutual has been unavailable all weekend. Is it a case of little guys being locked out while the big players manipulate their portfolios or is it a harbinger of system overload with everyone trying to convert to cash.
Don’t blame ME!!!!
Gold $1693 at 2145 EST.
tomorrow is already here , already.
Some are saying a big dip, then buyers swooping in, uptick ,then sell it off take the money and run crash.
Predictions are for Gold at 1860.00 by year`s end.
I agree that the DJIA is overvalued. Interesting, though, that the NASDAQ went down about 1% more than the Dow.
I haven’t quite decided where bottom is, but I don’t think we’re there yet. I’m thinking probably in the 8’s. Maybe the 9’s. Absent, of course, a major black swan event. I’d say lower but there is so much cash out there, sooner or later it’s going to flock back in.