What a day and certainly going to be registred in the history book as one of the bad days for markets around the world. Wel, this year there have been many. The US stock futures doesn’t look bright. As of this writing, Dow futures were down by nearly 200 points, S&P nearly 30points. Japanese Yen is below 100 mark. Asian stocks were hammered almost to the north of 5% decline and multi year low. Dollar at two-year high versus euro.
Here are some notable quotes –
We are far from the end of the road back to stability, but the plan to recapitalise our banking system, both here and abroad, will, I believe, come to be seen as the moment in the banking crisis of the past year when we turned the corner.” -BoE governor Mervyn King
The likelihood of a global catastrophe has in fact declined over the past couple of weeks.” – Glenn Stevens, Australia’s central bank governor.
The coming quarters will be very challenging … Our hope is that (the U.S. economy) will turn upward towards the end of 2009. – U.S. Treasury Undersecretary David McCormick.
Banks have started crediting sectors again. But we still need two or three weeks for the situation to start improving.” -Russia’s First Deputy Prime Minister Igor Shuvalov, quoted in the Financial Times.
As the credit crunch has worsened, wholesale business inventories have risen, causing an alarming rise in inventories in Asia and emerging markets at a time when seasonally these are usually being drawn down.” – Sean Darby, Nomura.
“The gold and forex reserves have fallen by $50 billion. We need to be careful when we use this stabilising influence.” – Russian Finance Minister Alexei Kudrin.
I wonder what’s in the store. We see weak but strong rallies and then fall(s). It appears to me that the desire to sell is still not over and may be we are about to witness 2001/2002 lows of near 7K area. Still a long way to go though. But these are the times that requires extra attention. So be careful.
Profitable trading, OP