There Is Definitely No Reason to Celebrate. by Milota Sidorova

"There is nothing fundamental that came out today or yesterday that would take it up or down. We're all groping for something meaningful to talk about," said Bob Andres, chief investment strategist at Portfolio Management Consultants. "The market is exhausted from going down." One might explain yesterday’s steep growth.
However, no one’s happy and nobody really believes this is going to last for a long time.

Although Dow Jones and S&P 500 rose more than 10 percent or 899 points a day which is the second best performance since Oct 13, data showed Americans were more depressed with the environment than expected.

Ok, let’s put here some facts. The Conference Board’s consumer confidence index reached its 41-year bottom, literally 38 percent from 61 percent in the last month. People are permanently getting stressed by massive job cuts, drops in home prices that strangely don’t reduce their mortgage payments and the rising inflation.
Job claim reports declare there have been more than 760,000 cut positions in the first nine months. However, the statistics don’t stop here. The unemployment index which has currently hit 6.1 percent is expected to break 8 percent border in the beginning of 2009. The retailers announced the upcoming ‘anemic’ holiday could lower the yields more than 2 percents to $250 billion this year which could be the worst sale season ever.

World markets have been reinforcing yesterday. The most troubled Japan index Nikkei closed with 7.7 percent gain. Nevertheless Japanese government watches closely the situation and the lawmakers are about to follow world trend – massive rate cut. American Fed will cut the rates by at least half a point today to the lowest level of 1 percent in the past 4 years.

European Central Bank and the Bank of England are widely expected to continue the strategy and boost national economies.
As for IMF, more than 2 billion rescue injection has been dealt with Iceland that has rose its rate cuts from 6 percent to unexpected 18 percent which may be quite a disaster for investors and lenders. Iceland representatives suggest it has been a part of IMF contract. Hungary, as the last from the IMF supplicants will receive $25.1 billion to shore up its currency and markets.







related story: http://news.yahoo.com/s/nm/20081029/bs_nm/us_financial6;_ylt=AgodaeeC_fUWT6zOd.Qq3jms0NUE

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

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edited by beata Biskova