stock market prediction July 18 2011 : Comments from Federal Chairman Ben Bernanke on the second day of his testimony to Congress dragged the markets into negative territory as he quelled all hopes of a third round of economic stimulus. Economic reports ahead of the opening bell had been encouraging, but failed to sustain the momentum as Bernanke dashed investors’ hopes and Moody’s said it has put the US’s bond rating under review for a possible downgrade.
Indonesian and Philippine stocks on Friday rose on optimistic earnings expectations in the financial sector, while Malaysian stocks were under pressure after a warning of a U.S. credit rating downgrade by Standard & Poor's hurt industrial shares.
South East Asian stock market activity was subdued with trading volumes in markets below their 30-day moving averages.
These comments immediately dragged the benchmarks lower. Incidentally, the statement comes a day after traders and investors interpreted Bernanke was hinting at a third round of economic stimulus. On Wednesday, in his testimony to the House Financial Services Committee, Bernanke had said: “The possibility remains that the recent weakness may prove more persistent than expected and that deflationary risks might reemerge, implying additional policy support".
Separately, news about the debt ceiling dampened the markets and the Treasury Department may fail to pay at least 40% of its bills if Congress does not raise its $14.3 trillion debt ceiling by August 2. These may likely include payments to social security recipients and military pay. Taking such a situation into account, Moody's Investors Services has put the US’ AAA rating under review for a possible downgrade, citing "the rising possibility" that Congress will fail to pass the debt ceiling by August 2.
watch stock market prediction july 18 2011
dow jones prediction july 18 2011, stock exchange prediction july 18 2011, stock market picks july 18 2011, best stock to buy july 18 2011,financial prediction july 18 2011,
No comments:
Post a Comment