This appears to be the way that the slowdown/recession will be experienced - periods of gain with sporadic positive announcements and stability with the price of oil followed by steeper losses as the effects of the sub prime mortgage crisis and the effects of ongoing inflation reappear.
Reuters: Oil's sharp fall pushes stocks to 3-wk peak
U.S. crude is now down more than $20 after hitting a record above $147 a barrel and fanning inflation concerns.
"As the oil price comes down the rest of the market will take that as a relief. But it is only a relief, don't be fooled ... That in itself does not solve the underlying problems of a slowdown."
Also helping sentiment, second-quarter corporate results from both sides of the Atlantic are proving to be not as disastrous as some had expected.
No comments:
Post a Comment