After a losing start on Thursday, the DOW Jones industrial closed the day up 552 points; at one point, the index fell to just under 8,000 but ultimately closed at 8,835. After such a wild day, you can expect some profit-taking today, and this combined with more gloomy news may see investors sitting on the sidelines.
While it really comes as no surprise, the Eurozone, having recorded two consecutive quarters of negative growth, is now officially in a recession and England will likely be in the same boat once the figures come in. In the U.S., Retail Sales fell a record 2.8 percent in October and now Federal Reserve Chairman Ben Bernanke is hinting at further rate cuts – the street is betting on a half point cut by the end of the year bringing the federal funds rate to 0.5 percent.
Yen Gains on Dollar and Euro
The yen continues to appreciate in value over the dollar and the euro as investors stick to a strategy of dumping assets funded in Japan in response to a worsening economic crisis. More
Eurozone Follows Germany into Recession Territory
Just one day after Germany announced it had slipped into a recession, the European Central Bank confirms that the entire region is officially in a recession. More
G20 Nations to Meet in Washington
Leaders of the G20 Nations – which account for 85% of the global economy – will meet in Washington to discuss strategies for dealing with the global financial crisis. More
Freddie Mac Loses $25B in Third Quarter
Mortgage giant Freddie Mac lost $25.3 billion in the third quarter losing $19.44 a share. More
