People Don’t Feel Markets Speed Up by Milota Sidorova

American markets seem to be doing well after extreme volatile two week period. Moreover, they are speeding up, showing signs of possible recovery. Watchers cause this situation with the promise of White House to carry on with second round of rescue pro social plan. This time it should be focused on middle class businessmen. President Bush has also announced a series of world summits aimed to resolve the problems of global financial crisis. Sky Rocket Dow Jones open is also referred to the Conference board report that composite index of leading economic indicators edged 0.3 percent that is actually the good news for the first time in five months.
Dow Jones increased 413.21 points or 4.67 percent to finish on total 9,265.43 points. Both indexes Nasdaq and S&P 500 kept following the trend.
Critics suggesst we can’t speak of permanent recovery, despite of several positive waves over Wall Street and relatively strong governmental back up. Investors remain carefully cautious. They prefer to buy low-yield safe assets which are very cheap to buy.
Fed chairman Ben Bernanke spoke out to lawmakers last weekend. He urged for quick action steps and despite massive expectations he didn’t show any firm hint of another cut.
Investors forecast at least half percent point rate cut before December. The upcoming meeting of the Federal Open Market Committee is scheduled on Oct 28-29.

As for the rest of the world, Russia stood up for rescue package focused on construction industry. Moscow is dealing one of the most ambitious architecture projects. Home prices have increased rapidly and threaten every branch of economy.
China have announced its consumers’ spending slowed last month because its people, despite living in safe distance are afraid to invest and even to spend more on western goods.
Consumers’ spending lowered in the U.S. as well and merchant do fear that upcoming Christmas season could end in the red numbers. Because people don’t feel the banks are recovering. They feel the inflation, unemployment, criminality, everything that has been secondary caused by the financial crisis. And they need a leader or a puppet to trust in.
For so long, we keep on waiting for the results of November 4.



related story: http://news.yahoo.com/s/ap/20081019/ap_on_bi_ge/wall_street_week_ahead;_ylt=Au_0I18uzioKEqIN5oVNJeKs0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova