A little–just a bit–of good economic news from Europe
As good news goes, today’s announcement of first quarter GDP growth in the Euro Zone economies isn’t going to produce dancing in the streets. But good news has been hard to come by in Europe recently so even the smallest positive change is welcome. The economies of...Looking for euro stock bargains? You haven't missed out and here are three to watch
Despite Monday’s (May 10) huge bounce on news that European Union governments had agreed on a $1 trillion rescue package, I don’t think you need to chase European stocks. The stock and bond markets might have been convinced for a day that the Greek, Spanish, etc. debt...China's stocks enter bear market territory on inflation fears
Meanwhile back in China… The Shanghai Composite Index fell another 1.9% on May 11 putting Chinese stocks in bear market territory. The index is now down 21% from its November 23 high. The index is now down 19% for 2010 making it the worst performing market in the...So exactly why does Europe need a $1 trillion bailout plan? Look at these banks–they all needed a bailout in the post-Lehman crisis and they're in trouble again
Before we get too euphoric over the European Union’s $1 trillion rescue plan, take a look at these names. They’re distressingly familiar. Fortis (FORSY). Dexia (DXBGY). Societe Generale (SCGLY). BNP Paribas (BNPQF). ING (ING). Barclays (BCS). Deutsche...How long before financial markets ask, So who's going to pay that $1 trillion?
The European Union’s $1 trillion rescue plan will reassure financial markets for a while. But at some point the bond markets are going to ask “So how are they going to pay for this?” In the coming days you’re going to hear lots of comparisons between this $1 trillion...$1 trillion in euro bailout plan enough to impress the markets today
Global financial markets are cheering the European Union’s $1 trillion rescue plan. (Cynics might call it a $1 trillion bribe to the markets, but I’d never join in suggesting that.) The goal was to produce a plan that awed the markets with its sheer size. For a day at...Bank of America's exposure to the euro debt crisis seems very modest; confirms U.S. risk of contagion is low
A little data here. A little data there. Someday we may actually know what banks are at risk in the European debt crisis. (Of course by then the crisis might well be over.) Bank of America (BAC) reported its exposure today, May 7, in a filing with the SEC (Securities...Good news from the U.S. jobs number–although the stock market doesn't care
The U.S. economy keeps chugging along. It might even be picking up steam. (Not that the stock market is in any mood to listen today.) Nonfarm payrolls added 290,000 jobs in April, according to Department of Labor data released today, May 7. That’s well above the...Apple has completely disrupted the technolgy sector: Can anybody else play this game?
It’s war. Full out war. Savage your former allies war. To the victor go the spoils war. To the death war. It’s Google (GOOG) against Hewlett Packard (HPQ) against Microsoft (MSFT) against Dell (DELL) against Lenovo (LNYGY) against HTC against Amazon.Com (AMZN)—and, of...New York we had a problem: Some trades today were executed at the erroneous prices
Overloaded trading systems with badly lagging prices during today’s 700-point intraday plunge gave traders erroneous prices. We might know how big the problem was tomorrow. But for tonight we do know that the New York Stock Exchange and NASDAQ are both unwinding...Don't forget about the euro: Today's stock plunge could have been triggered by the day's big currency moves
Maybe technical levels of stock indexes did turn a bad day for stocks into a heart-in-your-mouth plunge, but stocks prices aren’t the only thing that might have triggered today’s 700-point drop in the Dow Jones Industrial Average from 2:30 to 2:46 p.m. ET. There’s a...Here's how the technical levels help explain what's happened today
Since, in my opinion, technical levels explain the huge plunge that took the Dow Jones Industrial Average down 1,000 points or so (it’s not clear what real stock prices were during the heaviest trading since exchanges fell well behind on executing orders), let’s take...Don't look to the fundamentals–when stocks plunge this far, this fast it means big computerized selling has kicked in
Wow! Or maybe better Yeeouch! In the last hour the Dow Jones Industrial Average has been down 1000s points as it fell and kept on falling. Or just 390 points down as it rallied off the bottom. I don’t know exactly where the index is right now because I’ve taken a...Falling initial claims number raises hopes U.S. economy added jobs in April
The number of Americans filing claims for unemployment dropped last week, numbers announced by the Labor Department today show. That raised hopes that tomorrow’s employment number will show the economy added jobs in April. Economists are expecting that data to be...Spanish interest rates climb as the country takes another step toward crisis
You can breathe a sigh of relief that Spain managed to sell a new debt issue at all, but the soaring interest rate the country had to promise buyers is a sign that worries that Spain is headed straight toward a Greek-style debt crisis are all too justified....And now for some good news (on the U.S. economy anyway)
You’d never know it by looking at plunging U.S. stock prices but the economic data this week have been solid. The numbers point to a U.S. economic recovery that is at worst chugging along and that at best might even be picking up speed. So for example, factory orders...We're moving from a glass-is-half-full to a glass-is-half-empty stock market
Do you feel the psychology of this market changing? A few weeks ago I think you could have accurately said that investors on the sidelines were waiting to get into what they saw as a continuing stock market rally. I think that was true as late as April 15 (when the...Manufacturing growth may have slowed in China–but it's not enough; Chinese stocks keep falling on worries that the government still needs to step harder on the brakes
Growth in the manufacturing sector slowed in China April. At least according to the most comprehensive private sector survey of manufacturing activity. Mind you, numbers released by the government on May 1 show that growth in the sector is still accelerating. Which is...A falling euro says the crisis in Europe isn't over
Watch the euro. Yesterday while stocks in Europe and around the world rallied in relief on news of a $146 billion bailout for Greece, a falling euro signaled continued skepticism that the crisis was over. That skepticism seems to be on the rise this morning. As of...Can China's auto market save GM? Do pigs fly?
So what do you do if you’re a car maker with a home market that’s not buying as many cars as it used to? If you’re General Motors (GM), you invest as fast as you can in making and selling cars in China. Great plan. So great that Toyota (TM), and Nissan, and Volkswagen...It's hard to find water plays–but here are three from Singapore (Yes, Singapore)
The coming global water shortage. It dwarfs all other potential global shortages. Peak oil? A piker compared to no water. Push comes to shove and we will find replacements for oil. Water? Drink or die. The biology is that simple. In my December 2008 book The Jubak...China tightens again–speculation rises on when the big moves will come
Another order from the People’s Bank of China for China’s banks to increase reserves has set off a wave of speculation about how many more reserve increases are in the cards, when the central bank might raise its benchmark interest rates, and when China might decide...Greek crisis postponed, it's time for the Spanish crisis to move front and center
Assuming that the $146 billion bailout of Greece goes ahead as planned, investors can forget about a Greek crisis for about three years. And start to focus on Spain. The debt problem there looks like it’s developing along exactly the same path as the Greek debt...So where do stocks go from here?
Trying to figure out where the stock market—or actually stock markets since global markets aren’t closely correlated right now—is headed from here? Remember that trends always run further and longer than investors expect. What does that mean at the moment? The U.S....The recession is over so where's the cheering?
The recession ended today, Friday, April 30. At 8:30 a.m. to be precise. That’s when the U.S. Bureau of Economic Analysis announced that U.S. GDP had increased for the third straight quarter. After growing by 2.2% in the third quarter of 2009, and 5.6% in the fourth...5 stocks for the next generation Internet
Sigh, another thing to worry about. The U.S. is falling behind in the Internet race. According to Akamai Technologies (AKAM), average Internet access speeds in the United States were just 18th fastest in the world at the end of the fourth quarter of 2009. And if you...Go figure: Markets rally on news that Euro leaders will have a plan to bailout Greece "soon"
Sure glad that’s over. Suddenly Monday’s downgrade by Standard & Poor’s of Greece’s sovereign debt to junk doesn’t matter anymore. European stock markets have hauled out the rally monkey today on news that—well, on news that discussions on an aid package for...Brazil raises interest rates as emerging economies step up their fight against inflation
Brazil’s central bank, Banco Central do Brazil, raised interest rates as expected yesterday, April 27. But the bank also did the unexpected. The increase in the benchmark Selic rate to 9.5% from 8.75% was more than most economists and analysts had expected. 30 of the...All the world's stock markets are breaking down (or so it seems) except for the U.S. market–so far
U.S. stocks tested 11,000 on the Dow Jones Industrials again. Successfully again. The Standard & Poor’s 500 Stock Index and the NASDAQ Composite index held near last week’s lows of 1150 for the S&P 500 and 250 for the NASDAQ. All in all a reasonably promising...Jim’s Daily Email Alerts:
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