US consumer confidence figures push markets lower
A surprise drop in US consumer confidence figures saw the US stock market fall by 0.5% today at a time when many believed the market was on the verge of another rally. While the fall today may seem insignificant in the overall picture, there is a feeling that perhaps some investors in the US have "got ahead of themselves" with regards to the US economy and a potential recovery in the short term.
If this trend continues over the next few days there is no doubt that worldwide stock markets will suffer and the UK will at some point come under pressure. Only a couple of weeks ago it seemed that the vast majority of analysts expected the worldwide economy to recover and individual stock markets to rally in the short to medium term. However, there is now a feeling that perhaps the recovery in the US market and the UK market is a little more fragile than many people had expected and we may experience significant volatility along the way.
If you look at the stock market as a barometer of investor confidence in the future then any fallback in the short to medium term could set alarm bells ringing again.
Share this..
Related stories
German government turns up the heat on GM Europe takeover
Despite taking the lead with regards to negotiations about the Magna takeover of GM Europe, the German authorities are now demanding that EU members such as UK contribute a significant amount of money to the proposed €4.5 billion loan which the German government promised Magna. This is a significant U-turn by the German authorities who had taken the lead due to the fact the GM Europe operati...
Read MoreWill UK car production continue to improve?
The Society of Motor Manufacturers and Traders (SMMT) has this week confirmed that UK car sales are starting to recover and the fall in production numbers has improved dramatically although it is still down 16.1% compared to September last year. However, this is the lowest reduction rate in UK car production for 12 months but will it continue?
There is no doubt that the UK governmen...
IMF suggests worldwide GDP to fall by between 0.5% and 1.5%
The International Monetary Fund (IMF) is alleged to have collated data that shows that the worldwide economy would be shrink by between 0.5% and 1.5% as measured by GDP during 2009. The IMF then sees a gradual recovery in 2010 with the worldwide economy set to improve by between 1% and 2%. So what does this mean for the future?
While the worldwide fall of up to 1.5% in GDP is worryi...
Are we on the verge of changes in the UK education system?
Over the last few days there has been a lot of comment in the financial papers regarding the UK government budget deficit and potential savings in the short to medium term. One subject which seems to be on the tip of every tongue in the political arena is education and in particular the university system and how it is funded.
The CBI has today joined the party with a suggestion that...
Can the Scottish economy survive?
Despite the constant battles and constant rows between the Scottish parliament and the UK government there has been a call for calm and communication as the Scottish economy enters its darkest period for many years. A recent survey has shown the economy has turned down sharply over the last few months and has never been as depressed as it is today for over 25 years. The Scottish National party, wh...
Read More