U.S Economy Down in the Dumps

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Its been sad to hear about the decline of the U.S Economy. The Recession in the U.S economy has been very much strong. The U.S currency market , the housing market, the Investments Market and every other market in U.S has been affected due to the slump in U.S economic-trade cycle. The Share-Market is one of the major loss to the U.S economy. The growth in the stock-market is very slow and as a result, technology, Healthcare and consumer companies have revived their concern for the profits. Technology Market is badly affected due to dump in the economy.

Texas Instruments Inc which is the second largest U.S chip-maker has tumbled down with very few orders. Since dollar is down, Oil has risen. The Crude oil supply for the month of May has been 2.1 percent as the dollar dropped toa n all-time low against the Euro encouraging interest in commodities as an inflation hedge. And on the other hand the S&P 500, the Dow Jones Industrial Average, the Nasdaq Composite Index ..have decreased to 0.9 percent, 0.8 percent and 1.3 percent respectively.

The predictions, the estimations all are going against the expected results. Mike Ryan the New-York based head of Wealth Management Research for UBS Financial Services America has pointed out that ``Earnings and earnings estimates are coming down, which oversees about $734 billion and we're likely to see stocks continuing to be under pressure.''

So, I feel think twice before you think of U.S stocks,currencies or anything related to United States of America.

Dollar Dilemma

The Dollar is all disappointed as it has declined almost by 7.7 percent against the Euro. The Finance Ministry is not worried about the currency’s relative value than the risks from sharp fluctuations. The world’s two biggest currency traders the Duetsche Bank AG and the UBS AG said that the “ declining in the volatility means the likelihood of buying and selling currencies in a concert to halt the dollar’s slide had dminished even with the greenback at record lows.

Finance ministers object to rising volatility because it complicates the assessment of economies, interferes with monetary policy and gives companies little time to adjust by cutting costs. Foreign Exchange Strategist says that “ its not about the levels but about the volatility they are concerned with.” “``If the dollar drops in a gradual fashion, they are unlikely to act. There's not really a meeting of minds as to when intervention is needed.'' On the other hand, the stronger euro benefits the Europe by helping to temper the inflation rate. But being weak is also helpful at one end that is a weaker dollar benefits the U.S. by giving a boost to exports which have increased 2 percent.

Chocolate Magic made U.K stocks go up…..

Choco Magic

Chocalates which are sweet in nature are always nice to eat and tasty as well. They make us happy, they make us feel relaxed, they bring joy to everybody. But there is something else whom it can make happy. They are the U.K stocks. The Chocolate Largest Confectioner Cadbury took up the U.K stocks and especially the FTSE by 21.10 points. The Cadbury Schweppes added 2.4 percent. The U.K stocks and including the currency, everything went up.

Alex Smith an economic analyst said that “ we believe cadbury is the most strategically advantaged confectionary major and therefore the most attractive takeout or merger target”. And on the other hand, apart from the chocolate industry, Smiths group is the world’s largest maker of airport-security scanners which have also done a fantastic job and were up by 2.1 percent. So the U.K stocks can be at high with chocolate industry as well. Let’s hope that this business will continue in future as well.

Consecutive 3-day win for OIL

High Expectations in OIL Market

If the U.S currency market is not doing well and is declined then that indicates that it attracts more investment to the Oil market and as a result it makes the crude more cheaper for the investors in other currencies. Yesterday, the U.S Dollar was record down against the Euro as the Eurozone inflation data rose to an all-time high. This attracted many investors towards the Oil market. The oil prices are record-high. It is $115.54 a barrel which is the highest since it began its trading in 1980’s. People were expecting an increase in crude stocks and gasoline is going down, but if the gasoline stocks start dropping before summer, then it might be a real trouble to the U.S economy. Crude Oil for the month of May delivery is gained as much as 61 cents on the New York Mercantile Exchange. This is the consecutive three-day winning match for OIL.

No doubt, Oil is a revenue-generating source for the world-economies but then if it is raising more and more, then there may be some good trouble to the U.S economy because it is the first victim as weaker dollar attracts more demand for OIL market. Lets hope for the best things to happen

Happy Days for U.K’s Economy

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Having seeing the slump in the housing markets and banking sector in U.K, the Bank of England is worried that their economy may turn as the U.S ‘s economy and may go into deep recession. So they have taken the preventive measure and have cut the benchmark interest rates for the consecutive third time since last December. The Monetary policy committee lowered the bank rate by a quarter point to five percent. The Bank of England stated that the Credit conditions have tightened and the availability of credit appears to be worsening. Slower economic growth this year should help to keep domestic inflationary pressures in check. I feel that this interest-rate cut will definitely see a boom period in the U.K’s Economic structure.

ooooooo............Economy in Trouble

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When it comes to housing markets or the banking sectors the U.K consumers are not in a stable mood these days. The consumer confidence level has dropped as there is slump in the housing market and the banks have curtailed their lending habits. The currency market in U.K is declining and is 15 percent down against the Euro.

Since last September the U.K’s growth prospects have become dull. The house prices fell the most. The Bank of England might cut the benchmark interest- rate this week. In U.S also, the recession is deepening and the economy is in worse state. I hope the same will not happen with U.K’s economy.

Ups & Downs……

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U.S stocks index futures declined as the metal company the Alcoa said that its revenue fell short against its forecast. Alcoa is the world’s third largest aluminum company had faced drop in its revenues. The actual revenue was very less than the expected revenue. The Advanced Micro Devices which is the second biggest maker of personal-computer chips stated that its earnings can be lower than the expected one. The biggest metal company has delivered a quite unpleasant start in the new earnings season. S&P 500 index futures companies probably fell an average of 11.3% from a year earlier in the first quarter. The benchmark has lost 6.5% this year as concern mounted a housing slump showed slow economic growth. I’m just unable to predict the U.S stocks position since its been quite flutuating and the volatility rate is high.

Calm U.S dollar clinched at a strong point

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Having known that the U.S dollar has been experiencing some problems and not in a sound position but still the investors and traders were speculating that things will go right in place when it is concerned with the U.S dollar. As per the expectations the U.S dollar has been performing cautiously the past week and has risen the most in the earlier week. The strengthened dollar has been strong against the Yen and the Euro. It has been strong because there was a speculation that the Fed might cut the interest rates. As a result of the speculation the yen fell badly against the U.S dollar and the Euro too. This has encouraged the investors to buy high-yielding assets. But then The dollar has risen up to 1.2 percent level. The rebound rate of U.S D is 0.8 percent against the Japanese Yen. Just a talk that the Federal Reserve might cut the interest rates has made the Dollar to boost up again. Imagine how will be the U.S dollar’s position when Federal Reserve announces its interest rate cut in reality. I feel that the interest-rate cut by the FED might prove very productive to the U.S economy and the currency market as well.

Doldrums

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U.S stocks index futures wicket is down and their back-stage performance is quite dull. The futures fell as the UBS AG stated that a slowdown in the orders may curb profits and investors speculated that service industries in the world’s largest economy contracted for a third straight month. Standard & Poor’s 500 index futures fell by 0.4 percent. Dow Jones Industrial Average Futures dropped by 31 points. Futures pointed to a second straight decline for the S&P 500 after the benchmark for american equities posted its best start to a second quarter in 70years. Fed Reserve acknowledged the nation may be in recession but it is stated that the current financial crisis is worst than the greatest depression in the economy.