Thursday, October 22, 2009

Markets now addicted to ‘stimulus measures’ – where do we go from here? Dash for the exits?

Stocks Fall Around World on China, Ericsson as Dollar Rallies

Stocks fell from Tokyo to Paris and the dollar rose as the fastest economic growth in a year in China stoked speculation that government stimulus measures will be removed. “It is clear that time is running out for the sweet spot,” Lee Hardman, a currency economist at Bank of Tokyo Mitsubishi UFJ Ltd. in London, wrote in an e-mailed note today. Following today’s GDP release in China, “market sentiment has been soured as the report has turned attention towards when the Chinese will begin to tighten policy,” he said.

Posted by tyrellcorporation @ 10:51 AM (868 views)
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4 thoughts on “Markets now addicted to ‘stimulus measures’ – where do we go from here? Dash for the exits?

  • mountain goat says:

    Yesterday’s news Apple Stock Hits An All-Time High on bumper quarterly profit, but still the Nasdaq falls. When a bull market ignores good news be careful!

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  • general congreve says:

    Is this what we’ve been waiting for? Are we cresting the peak of the bear rally? Guess we’ll know before the month is out if the game is on or whether we’ll have to sit it out a bit longer.

    I hope it is though, I’ve got relatives breathing down my neck about my advice to buy gold and stay out of the market back in January, need things to crash big time soon. Obviously when they give me grief I tell them they should have bought back in to the stock market in March, but then they excuse themselves by saying they’re too busy to figure these things out and it’s up to me to do it for them, tsk.

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  • mountain goat says:

    GC I am watching the dollar for an answer. If it continues to fall it means people still believe in inflation and taking risk, so any market drops now are likely to be followed by more highs. If the dollar recovers it means sentiment has changed to selling riskier assets and deleveraging.

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  • MG,
    EUR/USD does seem to have fair resistance at 1.51, I must say.

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