International turmoil has staggered markets. The declines continue in the face of falling oil prices and the damage is spreading from oil producing nations in a contagion reminiscent of the 2008 financial crisis. There is no comparison because the financial system is much stronger now, but investors are nonetheless extremely nervous and unwilling to put any more risk on the table. Russia is taking the brunt of the economic heat. Russian stock indexes continue to fall heavily with no end in sight and the Russian Bank raised interest rates by a massive 6.5% to 17% in an attempt to stop the flight of capital. Oil continues its decline, falling another 2-3%. Gold is volatile bouncing heavily around flat-line. The US dollar is down against most major currencies. A Federal Reserve meeting this week might provide some impetus to the market as global weakness might give bankers more reason to put off interest rate hikes and stir the pot with hopes of more financial stimulus. Stocks today will be looking for a floor from which to start building again.
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