After a poor few sessions last week, with a brief respite to the selling yesterday, most of the major indices are moving back down today or are just about holding their own. However, apart from minor economic news and earnings there’s nothing to get too excited about right now.
HSBC’s purchasing managers’ index for the Chinese service sector fell to a reading of 50 for July, the lowest level since records began to be kept in November 2005. The poor number hit the Japanese market with exporters feeling the brunt and now the declining US market has moved the UK and Europe into the red.
The Dow industrials are down 54 points despite some strong factory order data in June which climbed a seasonally adjusted 1.1%, against forecasts of 0.6%. The level of $503.2 billion is the highest on record with durable goods orders moving up 1.7%, higher than the initially estimated 0.7% gain.
In July, any negative news was quickly forgotten as the markets powered to all time highs, so far this month things seem to be different with much more of a focus on poor economic news from around the world.
I expect further weakness and am watching and waiting for an opportunity to pick up some less expensive stocks. It seems like many of the big fund managers are struggling to see which way things will go right now with plenty worrying about the Federal Reserve’s attitude to stronger US data in terms of raising interest rates. With volatility on the up, the calm days of early summer may be over. Where the geo-political situation goes in areas like Iraq and Kurdistan as well as rogue events like the Ebola outbreak in Africa could make things interesting. If the S&P 500 breaks down below 1,900 August could throw up some nice bargains.
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.
by contrarianuk
Markets continue downward move after yesterday’s respite
Aug 5, 2014 at 2:22 pm in Market Commentary by contrarianuk
After a poor few sessions last week, with a brief respite to the selling yesterday, most of the major indices are moving back down today or are just about holding their own. However, apart from minor economic news and earnings there’s nothing to get too excited about right now.
HSBC’s purchasing managers’ index for the Chinese service sector fell to a reading of 50 for July, the lowest level since records began to be kept in November 2005. The poor number hit the Japanese market with exporters feeling the brunt and now the declining US market has moved the UK and Europe into the red.
The Dow industrials are down 54 points despite some strong factory order data in June which climbed a seasonally adjusted 1.1%, against forecasts of 0.6%. The level of $503.2 billion is the highest on record with durable goods orders moving up 1.7%, higher than the initially estimated 0.7% gain.
In July, any negative news was quickly forgotten as the markets powered to all time highs, so far this month things seem to be different with much more of a focus on poor economic news from around the world.
I expect further weakness and am watching and waiting for an opportunity to pick up some less expensive stocks. It seems like many of the big fund managers are struggling to see which way things will go right now with plenty worrying about the Federal Reserve’s attitude to stronger US data in terms of raising interest rates. With volatility on the up, the calm days of early summer may be over. Where the geo-political situation goes in areas like Iraq and Kurdistan as well as rogue events like the Ebola outbreak in Africa could make things interesting. If the S&P 500 breaks down below 1,900 August could throw up some nice bargains.
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.