But there was bad news on the U.S. jobs front. The U.S. employers announced in September 95,094 job cuts, but these job cuts are now estimated to 112,884. This is the highest number of layoffs in almost 4 years. Bad news for the European and American markets, but the Asian and Australian markets rose. The markets of Singapore and India also did well. The cause for these markets to do well was the fact that the investors looked past more signs of a struggling U.S. economy.
The Dow Jones index knew his biggest Election Day rally ever, while in Japan a weaker yen boosted the shares of major exporters, mostly automakers and consumer electronics firms. The dollar was trading at 99.70 yen compared to 98 yen the previous day. Also the oil prices retreated after going over $70 a barrel overnight.
We have seen that the elections have had a very good influence on the stock markets but the closer we came to the Election Day, the uncertainty of the investors grew again because of the bad news on the U.S. job front. The people were already expecting some layoffs but not this much. This is a sign that the economy is not doing very well. It looks like we’re almost stuck in a vicious circle, where the aggravating economy makes the number of layoffs grow, and the high number of layoffs takes away the confidence of the investors. The investors keep their money instead of investing it in the companies, and the story starts all over again.
Source: CNN : World markets down following Obama victory.
http://edition.cnn.com/2008/BUSINESS/11/05/world.markets/index.html
1 opmerking:
I think we need a stable economy but with the elections you never know so the investors are not certain so the markets went down. Now America got a new president he can work on the confidence of the investors and the economy so we can come out of this vicious circle.
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