Monday, June 30, 2008

Stock markets turmoil, rising commodities and week US dollar.

Global stock markets are still under correction. Major indices haven't succeeded to rally after they bottomed on March this year. Last week Dow Jones Industrial Average has turned into the bear market by drop more than 20% from recent October high. Market lab show still Head and Shoulders bearish pattern for S&P 500 and DJIA on weekly basis. We have closed 4 consecutive weeks in negative for broad US indices.

Iran tension and weak USD lift crude oil to new all time high. Another commodity supported by current market conditions is gold by endless sub-prime mortgages financial crises.

Worse earnings reports are dragging down shares which again triggers selling pressure on US dollar. Which makes vicious spiral.

Outflow from US dollar and shares helping some markets and their currencies. Especially economies growing still at modest pace. Have a look to Czech currency Koruna. Despite 20% appreciation YTD against USD it breaks new highs every week no matter of intervention of Central bank.

Related tickers: (DIA), (SPY), (OIL), (USO), (GLD), (UUP), (UDN), (XLF),


0 Responses to "Stock markets turmoil, rising commodities and week US dollar."