Major Market Movers: Inescapable Global

Daily Forex Fundamentals | Written by Crown Forex | Nov 11 08 08:02 GMT |

Since the beginning of the Crisis all the eyes were headed toward the United States as it was the source to all this destruction in financial markets; but now investors', citizens or any interested watcher are taking a wider outlook witnessing the fall down in some of the world's economy that used to bolster the overall global growth. China is now teetering on the brink of a recession, even when the Chinese government came out in the past two days giving out a plan that would prosper the economy once again, yet there is a huge possibility that the proposed plan came late as a temporary recession will defiantly be seen in the world leading producer . The retreating expansion in the Chinese output levels drove Consumer prices down south, according to the released data prices plunged to 4.0 percent in October to a 17 months low from the previous 4.6%, as this fall came at the month the Credit Crisis intensified. This ease in consumer prices would open the path for the Chinese Central Bank to consider slashing rates down in an attempt to support the economy from shedding more losses. The apparent slow down along with the lack of Confidence in the stocks markets had resulted in a massive down turn to the stock prices, and the weakening outlook had obligated the Asian stocks to head down south, the CSI 300 Index fell 1.20% in the Asian session leaving the index with a total 66.65% fall since the beginning of the year, also the Japanese Nikkei Index fell a total of 3.00% in the early session affected by the ongoing fears from a global recession along with the gloomy outlook of the final quarter earnings. Also on the queue is Australia; according to the released statistic, the national Australian Bank announced the Business Confidence fell to -29 levels in October the lowest in history from the previous -8 in the previous month, also the bank said the business conditions fell to -11 in October from the previous -1. The deterioration in the confidence levels along the tumbling financial sector and the slowing demand on the commodities is putting Australia on the verge of a recession, which would by the first in two decades. The world's outlook continues to gloom; expectations of more downturns are becoming highly anticipated, but who's next this is the question?? Majors companies in the world collapsed, the fear is now to see economies collapsing as most central banks in the world are running out of instruments that could be used in salvaging their economies. The British Prime Minister came out yesterday to say taxes must be reduced along with using more spending policies which would prop the spending levels in the world, the noted added clarifies that taxes might be eased in the Royal territory in order to pick up their economy from a potential recession. Markets continue to have empty calendars from the United States as this week is considered to be a light weak for the Americans, but this did not stop the feds yesterday from intervening to help the AIG, were the decided to buy a $40 billion of their shares along to narrowing their loan from $85 billion to $60 billions saying that this company is considered to be the largest insurer in the world. The intervention retrieved some confidence back in the US session, indices managed to narrow down their losses, the Dow Jones industrial average fell 0.82% closing at 8870.54 levels and the S&P 50 fell 1.27% closing at 919.21 levels and NASDAQ lost 1.86% closing at 1616.74 levels. The outlook remains the same; the US dollar might continue to weaken against majors as the situation is getting darker, yet the destruction is halting upon the other economies so we have to see who will be the first survivor from all this mess. Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.