(as of 7:00 AM PST)
There is a definite shift in momentum this morning. Stocks are down and look to be headed further south. China's Shanghai Stock Market, which has been on fire in recent months was off 4% after news that stiffer margin requirements might crimp liquidity. Europe markets are down across the board in spite of the fact that GDP estimates for the Eurozone were raised. In the US a staggering increase in the balance of trade deficit has investors very nervous. It may well cause US GDP estimates for the 1st quarter to be revised downward, possibly into negative territory. Gold and oil are up while the dollar is trying to fall, but is being propped up by a flight to the safety of US Treasuries. There is also a slow, but steady, upward pressure on interest rates with the 30 year mortgage rate approaching 4%.
No comments:
Post a Comment