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Thread: Share markets panic as recession fears grow

  1. #1

    Share markets panic as recession fears grow

    Dow Jones Industrial Index was down 800 points today. Getting closer to Trump's magical 25,000 mark yet again. When the economy is great, it is all due to Trump. When the economy isn't great, it is somebody else's fault. Take all the credit for the good and pass blame for anything bad.

    https://www.bbc.com/news/business-49352760

    Panic gripped Wall Street on Wednesday as investors fled shares amid fears over a US-China trade war and the health of the global economy.

    The three main US stock markets fell 3%, with analysts pointing to signals the US may be heading for recession.

    Weak data from Germany and China, and another attack on the US central bank by President Donald Trump, helped fuel a rush for haven assets like gold.

    Analyst Oliver Pursche, from Bruderman, said the global picture was precarious.

    "What's happening in Hong Kong, what's happening with Brexit and the trade war, it's all a mess," the chief market strategist said. "Every central bank around the world is trying to prop up economies and every politician around the world is trying to destroy economies."

    News that Germany's GDP contracted in the second quarter, and that China's industrial growth in July hit a 17-year low, had already spooked markets in Europe. The FTSE 100 closed down 1.5%, while in Germany and France the markets finished more than 2% lower.

    Another fear was that the bond market was flashing recession warnings. The yield on two-year and 10-year Treasury bonds inverted for the first time since June 2007. This odd bond market phenomenon is seen as a reliable indicator of possible recession.

    Meanwhile, the CBOE volatility index - the so-called fear index - jumped 4.26 points to 21.78, and spot gold prices rebounded, rising more than 1%. All of the 11 major sectors in the S&P 500 were in the red, with energy and financial suffering the largest percentage loss. Banks also fell heavily, with Citigroup down more than 5%.

    Fed attack

    Mr Trump again attempted to deflect the market turmoil onto the US Federal Reserve and its interest rate policy, calling Fed chief Jerome Powell "clueless".

    In raising interest rates four times last year "the Federal Reserve acted far too quickly, and now is very, very late" in cutting borrowing costs, the president tweeted. "Too bad, so much to gain on the upside!"




    Earlier on Wednesday, White House trade adviser Peter Navarro told Fox Business Network the central bank should cut rates by half a percentage point "as soon as possible", an action he claimed would lead to stock markets soaring.

    Despite the US delaying the 1 September imposition of tariffs on some Chinese imports into the US, it has done little to ease concerns.

    "The challenge is that Trump's trade policy has proven so erratic that you cannot relieve the sense of uncertainty,"
    said Tim Duy, an economics professor at the University of Oregon.

    As of September last year, the US central bank had a relatively rosy outlook for the economy, expecting that the stimulus from the Trump administration's massive $1.5tn tax cut package and spending in 2018 would sustain growth and justify steadily higher interest rates.

    Mr Trump wants to make the economy a central part of his case for his 2020 re-election campaign.

    In an interview scheduled to air on Fox Business Network on Friday, former Fed chief Janet Yellen said she felt the US economy remained "strong enough" to avoid a downturn, but "the odds have clearly risen and they are higher than I'm frankly comfortable with".
    Last edited by Zippyjuan; 08-14-2019 at 02:27 PM.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.



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  3. #2
    #sickOfWinning

    Gulag Chief:
    "Article 58-1a, twenty five years... What did you get it for?"
    Gulag Prisoner: "For nothing at all."
    Gulag Chief: "You're lying... The sentence for nothing at all is 10 years"



  4. #3
    GLD ends up +.68%.
    SLV +1.32%
    Twitter: B4Liberty@USAB4L
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Internet-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul
    They are what they hate. - B4L


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  5. #4
    Trump has nothing to do with dismal P / E ratios . They are though going to have more opportunity to succeed from any gov to the right of status quo DNC .
    Do something Danke

  6. #5
    Quote Originally Posted by oyarde View Post
    Trump has nothing to do with dismal P / E ratios . They are though going to have more opportunity to succeed from any gov to the right of status quo DNC .
    S&P 500 PE ratio is about 20 which is not that high compared to since 1990. One year ago it was 24.

    Last edited by Zippyjuan; 08-14-2019 at 07:16 PM.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  7. #6
    Quote Originally Posted by Zippyjuan View Post
    S&P 500 PE ratio is about 20 which is not that high compared to since 1990. One year ago it was 24.

    What is the Dow historical avg . about 15 ?
    Do something Danke

  8. #7
    Quote Originally Posted by oyarde View Post
    What is the Dow historical avg . about 15 ?
    It hasn't been below 15 on that chart since the 1980's.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.



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