Articles for: CBOT

Happy birthday to our much quoted and well known friend: the Sub-Prime crisis.

After a shocking week previously, the US market managed to regain some lost ground through to Thursday despite a raft of disappointing economic data results.

Since carving out fresh highs in late October, world markets experienced the first significant correction in around five years, and for many it was a rude awakening.

The Euro has continued its strong run into 2008, approaching the 1.6000 level last week during some volatile trading before selling off slightly last Friday night.

The most important question on the lips of traders and investors across the globe is, quite simply, “When will we see an end to the turmoil?”.

The majority of analysis conducted thus far regarding US bonds has been undertaken on the 30 year part of the curve.

When I see investors buying into the current market I ask myself, who is doing this buying? Why? Do they know something that I don’t?

After a few weeks of emotional extremes in the financial markets it is time to reflect on the US economic picture. There are some positive signs.

It has been a dramatic few weeks on global stock markets. The impact of the credit crunch and years of easy debt, that is simply not available now, is really starting to hit home.

Well much has happened in the last week and if I was writing as I did last week on the mother of all share indices – the DOW – I would probably have taken an even harsher view.