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European Markets And U.S. Futures Back Into The Red Territory

Published 12/31/2000, 07:00 PM
Updated 01/29/2009, 06:41 AM
SONY
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Current Futures: Dow -74.00, S&P -9.10, NASDAQ -10.50
 
European Trade: European market and U.S. futures moved lower in the overnight session. However, Asian markets managed to hold above the break line, after President Obama’s plan cleared the first hurdle. 

A report showed this morning that U.K. house prices have hit a four year low, shedding over 16% in the last year alone, the most since 1991. However, in the last few months the downside action started to subside as the Bank of England eased the monetary stance and the U.K. government pledged to increase the number of mortgages throughout its “subsidiaries”, such as HBOS and RBS.

On the other side of the pond, the Fed warns the financial markets about a long lasting period of deflation. In addition, the Fed has said for the first time that the world economy has weakened significantly. This is just another confirmation that the Fed is going to keep the rates as low as possible, <0.25%, for a long period. Some suggest, the Fed might not move the interest rate any higher until well beyond 2010. By these measures, the Fed hopes to add liquidity to the economy, thus the business cycle could again start to move higher.

In Europe, the U.K. Ftse shed 33.89 points (0.79%) to 4,261.31, while the German Dax lost 45.06 points (1.00%) to 4,473.66

Crude oil traded virtually flat in the last session. Crude oil for February delivery rose $0.30 to $42.10.

Gold moved lower, following the dollar’s strength. Bullion for immediate delivery fell $14.90 to $884.60.

Previous Asian trade: Tonight, the Nikkei rose 45.22 points (0.56%) to 8,106.29. The Australian S&P/Asx gained 51.50 points (1.50%) to 3,495.50. After the Nikkei trading closed, Sony announced its earnings dropped 95% in Q4.

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