Market update by UWCFX - 05.08.2011

[effexx]

Bloody markets in dramatic sell-off.

Markets in the United States, Europe, Australia and Asia continued to sell off experiencing the bloodiest days since the Lehman Brother bankruptcy and market recession in the autumn 2008.

Investors seem completely to have lost confidence in politicians and optimistic forecasts on growth in the US market.
Fear that the debt crisis in the periphery of Europe will hit Italy and Spain and the whole EURO-zone add to the dull mood and investors sell off of stocks.

National banks continue to protect their currencies, but the effect of Japanese Central Bank interventions on Wednesday, had a short-lived effect and was wiped out over night with stronger YEN against US.

Gold continues to be the bright spot reaching peak levels of 1680 before yesterday’s onslaught. Gold fell to 1640, has recovered and is at present trading on 1656.

Oil also fell dramatically on stagnating growth fears. Oil is now stabilizing on Brent USD 107.

Analysts continue to differ on the markets are in for a double dip recession or whether the sell-off offer a buying opportunity.
Treasury bills and private bonds are markedly up over the last couple of days.

[effexx]

Run, walk or BUY?
Market panic continues.

Panic selling continued in the Asian market this morning after last week’s onslaught. Relatively good
employment figures in the US Friday afternoon created a short relief when the credit rating Standard
and Poor after the closure downgraded the world’s largest economy to AA.

This has sent new shivers into world markets. Fears of Italian and Spanish default are raising new serious questions
On the future of the EURO-zone. Investors are running from stocks and weaker currencies into Gold, Swiss Franc and YEN and surprisingly enough US treasury Bills.

The world market is without doubt facing its gravest challenge since the Lehman Brother crisis in 2008 G-7
and European Central Bank (ECB) assurances over the week-end has done nothing to calm over nervous,
volatile and shaky markets.

Gold is again the big winner reaching 1700 during the night with Silver as well jumping 5 % to 40,20.
Money continues to flow into Swiss Franc, YEN, treasury bills and bonds. The Chinese Huan has appreciated 0,2 %
against the USD as the Chinese stock markets are holding off better than other Asian markets.

USD is the big looser.

Be prepared for a new stormy and volatile week giving FX traders unexpected opportunities.

[effexx]

Originally Posted by effexx

Run, walk or BUY?
Market panic continues.

Panic selling continued in the Asian market this morning after last week’s onslaught. Relatively good
employment figures in the US Friday afternoon created a short relief when the credit rating Standard
and Poor after the closure downgraded the world’s largest economy to AA.

This has sent new shivers into world markets. Fears of Italian and Spanish default are raising new serious questions
On the future of the EURO-zone. Investors are running from stocks and weaker currencies into Gold, Swiss Franc and YEN and surprisingly enough US treasury Bills.

The world market is without doubt facing its gravest challenge since the Lehman Brother crisis in 2008 G-7
and European Central Bank (ECB) assurances over the week-end has done nothing to calm over nervous,
volatile and shaky markets.

Gold is again the big winner reaching 1700 during the night with Silver as well jumping 5 % to 40,20.
Money continues to flow into Swiss Franc, YEN, treasury bills and bonds. The Chinese Huan has appreciated 0,2 %
against the USD as the Chinese stock markets are holding off better than other Asian markets.

USD is the big looser.

Be prepared for a new stormy and volatile week giving FX traders unexpected opportunities.

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