Stocks have retreated in recent days after the Dow Jones industrial average flirted with 11,000 for the first time in 18 months. Single day drop 72.47pts.
1. There are concerns that debt problems in Greece and other European nations could upend a global economic recovery and damage the euro. Greece's borrowing costs continue to surge. Investors are demanding more interest now to hold Greece's debt because of concerns about a possible default. The spread between Greek and German two-year bonds swelled by a staggering 1.2 percentage points Thursday.The higher rates will make it more expensive for Greece to issue new debt or roll over outstanding debt, which could trigger a default.
2. A disappointing report on initial jobless claims is also sending U.S. futures lower. High unemployment is considered a major stumbling block to a strong, sustained economic rebound.
3. New sales reports from retailers showed consumers are beginning to return to stores, though the data hasn't been good enough to offset the Greece debt concerns or the disappointing jobs report.
4. Consumer spending is a primary driver of economic growth, so a jump in spending would show consumers are gaining more confidence in their finances and the economy.
5. Losses accelerated late in the day after the Federal Reserve said consumer borrowing fell unexpectedly in February, dropping by $11.5 billion. Economists had expected borrowing to rise by $500 million. Weakness in credit cards and auto loans gave investors pause about whether consumer spending will remain stagnant and slow a recovery.
KLSE Profit Taking Days on Thursday 8th Apr 2010
Will the first quarter earning support today's earning & make the US DJIA rebound & so do KLSE?
No comments:
Post a Comment