A glimmer of an end to the rout in stocks?
Stocks around the world took a beating last week. So what will this week bring? A continued slide or a rebound?
Monday, January 25, has started off on a mixed but positive note.
Before the U.S. stock markets opened, trading in London showed futures on the Standard & Poor’s 500 stock index rallying by 0.8% as of 12:20p.m.London. European stocks, as measured by the Dow Jones Stoxx 600 Index were essentially unchanged.
Meanwhile in Asia…
Hong Kong’s Hang Seng Index slipped another 0.6% to enter a formal correction. The index is now down 10% from its November high. That 10% decline meets the formal definition of a correction.
Watch to see if the 10% drop in Hong Kong stocks is enough to trigger any buying in that market. Often a drop of that size is enough to convince buyers to go bargain hunting. Given the uncertainty about the health of the U.S. recovery (see my next post) and the speed and degree of monetary tightening in China, a 10% drop may not b e enough this time. We’ll know more in the next few days.
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