On 15 August 2008, Dow Jones closes its trading session with a modest gain of 43.97 or 0.38 while S&P 500 increases 0.15 percent. It was considerably a mixed session.
On one end, economic hope was triggered by the declining crude oil prices which see the peaked price of $147.27 dropped more than $30. Crude oil is the major market direction now as many believes that if oil price is kept under control, most other commodities will go on a decline trend as well. It is largely believe that most industry dealing or rely heavily on petrol or fuel will be pushed up in prices in a matter of the following weeks. But that is provided that crude oil continues the down trend. Gold on the other hand had passed $1000 an ounce but it is less than $800 now. The growing believes that economy around the world are following US in the slow down which led to the sell-off in crude oil. The fall of oil is also attributed by the greenback which grew stronger and stronger each day against other major currencies around the world.
On the other side of the coin which resulted in the resistance of the market buying sentiment is the worry about a weak credit market. Weak credit has been a ongoing concerns after the almost forgotten subprime woes and credit crunch which took place sometime back.
Looking ahead, major markets around the world will look at Wall Street for market direction. This is including China, SSE, Shanghai Composite Index which is another market that has been seeing a collapse. Technical recovery can be expected amid bargain hunting and volatile investing environment during the up coming weeks,
Above are all personal opinion and not at all an inducement to trade.
Leave Your Comments