stock market predictions week september 12 2011

stock market predictions week september 12 2011 : U.S. President Barack Obama's $447 billion proposal in tax cuts and new spending to revive the U.S. economy wasn't enough to restore confidence to markets, even though the stimulus package was larger than analysts had expected. Is it going to be enough to really create jobs? It's difficult right now to be fully convinced of that.

US stock markets ended a short four-day week with losses, after an early rally gave way to doom and gloom, largely due to the eurozone's sovereign debt crisis.

The Dow Jones Industrial Average fell 2.21 per cent for the week to close at 10,992.13 on Friday. The broader S&P 500 sank 1.68 per cent to close at 1,154.23, while the tech-heavy Nasdaq Composite fared better, dropping only 0.50 per cent to 2,467.99.

"Europe continues to be just as big a driver of our equity market than anything happening domestically."

Fears of a possible double-dip recession in the United States also shook the markets, with policy speeches by President Barack Obama and Federal Reserve chairman Ben Bernanke on Thursday failing to arrest the slide.

Bank stocks were hit especially hard as concerns over exposure to Europe's debt crisis were added to fears of immense new legal costs stemming from the United States's subprime mortgage debacle.

Shares of JPMorgan Chase slumped 7.3 per cent for the week, compared to their closing price on Friday, September 2, while Citigroup was down 5.8 per cent and Goldman Sachs was down 4.5 per cent.

The three lenders were among the 17 domestic and foreign banks that were slapped with costly lawsuits by US authorities late last week over losses on mortgage-backed securities.

If there was a ray of hope on the markets this week, it was technology stocks, which eked out gains as bargain-hunting investors snapped up their shares.

Apple, Intel and Amazon were all up by less than one per cent for the week, despite the overall market downturn.

The week was bookended by the US Labor Day holiday on Monday -- during which markets were closed -- and poignant ceremonies on Friday to mark the tenth anniversary of the September 11 attacks, which hit close to Wall Street.

Next week, investors will be watching to see how Congress reacts to the details of President Barack Obama's job-creation plan.

Opposition among Republicans in the House of Representatives is likely to be fierce, but there are hopes that at least some part of the $447 billion plan can win Congressional approval.

Markets will also be keeping a close eye on policy moves in Europe. Finance ministers from the G7 group of wealthy countries are expected to discuss the eurozone's debt crisis at a summit in France over the weekend.

"Right now, it is economic policy which matters: policy in the eurozone and in the United States, the passage or the counterattack against Obama's plan, Investors will also be keeping a close eye on the official US inflation rate to be released next Thursday.

A low inflation number will embolden those who argue that the Federal Reserve should launch a new round of quantitative easing to stimulate the ailing economy.

European markets forecast week september 12 2011
Stock market averages opened lower and never recovered Friday. The focus in on Europe; where equity markets and the euro are reeling amid ongoing concerns about the debt crisis. Spain’s IBEX lost 3.8 percent, Germany’s DAX gave up 3.6 percent and France’s CAC 40 Index slid 3.2 percent Friday on talk Greece is near default. Read More...

UK. Stock market forecast week september 12 2011
Trading on the London Stock Exchange is likely to be driven next week by the fate of British banks as final recommendations are due on a shake-up to avoid further state bailouts of lenders.Read More...

currency market outlook
EU in flux, the Euro currency collapses, plus fear of terrorist attacks into the Anniversary of 9/11 — but the market held the levels that I spoke of in the Midday, which gives me a sense that next week the volatility/market will potentially normalize, and barring any incident over the weekend, we could set up for a retest of this week’s highs. Next week will be very interesting, volatile, and full of opportunity so get ready. See you Monday.

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