Friday, December 12, 2014

Economic Journal - Friday, 12/12/2014



(As of 7:20 am PST)
 
After modest gains yesterday, stock prices are back in the red putting the major US indexes on track for their first weekly losses in two months.  The dramatic decline in oil prices over the past several weeks is continuing to ignite fears that the global economy may be at risk of deflation.  Despite the perceived tax benefits for consumers with falling oil prices, analysts and investors alike are still deciding if the price drop in oil is positive or negative for stocks and the global economy in general. Growth concerns in China and Europe are adding to the selling pressure in recent days. Asian markets finished Friday’s session mixed but were down for the week. European markets are lower with the Stoxx Europe 600 index on pace for its sharpest weekly decline since 2012. Economic data is light today, however a report on consumer sentiment from the University of Michigan showed sentiment sky-rocketing to its highest level since January 2007.  Despite the strong reading, markets maintained firm  downward pressure as all signs point to another day of losses to close out a very difficult week.

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