Major Market Movers: Waiting US Data

Daily Forex Fundamentals | Written by Crown Forex | Nov 26 08 08:14 GMT |

Yesterday the feds decided to reveal another plan in order to revive back house loans, Car Loans, Student loans and others calling it Term Asset Backed Securities Loan Facility. Markets were happy to see another plan which could revive the slowing economic activity, yet confidence was not restored leaving the US indices with little gains. The protracted slump in the world's largest economy won't be cured easily and the proposed plans won't be able to restore confidence especially more jobs terminations are taking place with expectations that those unemployment levels will augment in the upcoming year. The feds believe that this plan would be sufficient in providing credits for the small businesses and citizens, but in the current situations I don't think the US citizens are welcoming any debt because nobody is sure whether they will stay in their jobs or not??? Rebates are needed to revive spending along with reforming the financial sector once again just to reach to stability phase; according to the new elected president Barack Obama various speeches we might be witnessing another stimulus which props up the growth but letting citizens head toward shops. Also the TALF will continue to support the government sponsored enterprises in Fannie Mae, Freddie Mac and Ginnie Mae; where two of those companies got notified last week by the NYSE that they might be de-listed if their shares prices does not rise above $1 per share. TALF couldn't boost indices The endless turbulence and the lack of confidence that this plan would support the protracted slump had prevented the US indices from climbing safely in the green area. Dow Jones Industrial Average gained 0.43% or 36.08 points closing at 8479.47 levels, the S&P 500 inclined 0.66% or 5.58 points to close at 857.39, yet NASDAQ lost 0.50% or 7.29 points reaching to 1464.73 levels. US future indices fell in the Asian session today; Dow Jones Future lost 49 points reaching to 8396 levels, the S&P 500 future lost 5.60 points reaching to 847.60 levels and NASDAQ future fell 6.00 points to 1129.50 levels. Asian stocks also plunged; the Japanese Nikkei Index fell 1.3% or 110.71 points closing at 8213.22 levels after Toyota Motors, the second largest automaker, credit rating was lowered down to AA from the previous AAA due to the fall in their sales. Hong Kong's index gained 2.67% or 342.20 for the second consecutive day after the proposed plan by the feds was out yesterday. Awaiting Fundamentals before Thanksgiving Day… A full and busy calendar; we will start our day with the Durable goods reading markets anticipate to see a deeper contraction in sales reaching to -3% coming worse than the previous fall 0.8%, also we've got the Durables ex transportations falling 1.6% in October from the previous fall of 1.1%. NO money to spend, the prolonged restrains created from the Credit Crisis and the continuous job cuts had curbed the levels of spending in October, the change in spending behaviors will push the world's largest economy into a second episode of contraction as this time it would be deeper than what we witnessed yesterday. 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.