Sat Mar 23, 2024 11:33 pm by globalturbo
Barack Obama: Markets tumble following election. . . I’ll bet ‘they’ know the jig is up. . . ~J
Posted on November 7, 2012
Global stock markets, which initially greeted the
re-election of Barack Obama by creeping higher, have gone into reverse
as analysts look ahead to the so-called US fiscal cliff and new figures
raise fresh concerns over the health of the European economy.
Markets in Europe initially rose following Obama’s election victory. Photo: AFP/GETTY
By Ben Martin
3:35PM GMT 07 Nov 2012
The Dow Jones Industrial Average tumbled 1.8pc and the S&P 500
dropped 1.6pc this afternoon. The FTSE 100 is down 1.3 pc, while French,
Spanish, Italian and German have all fallen.
Republican contender Mitt Romney was seen by some financial analysts
as the more business-friendly candidate, while Douglas McWilliams, the
head of the Centre for Economic Business Research, told Sky News before
the election that the Dow Jones Industrial Average could spike by 500
points because his victory had not been priced in by the markets.
Now the election has been decided, analysts are also looking ahead to
the challenges posed by negotiations over the fiscal cliff, a
collection of tax rises and spending cuts that are due to be implemented
in the new year.
“Pressing issues such as the unresolved fiscal cliff are unnerving
markets, with fears that Obama will be unable to forge strong partisan
ties with lawmakers against his policies in order to come to an
agreement,” said Ishaq Siddiqi, a market strategist at ETX Capital. “As
we know, neglecting the fiscal cliff issue could shave a considerable
amount of US GDP, sending the country back into a recession and force
credit agencies to strip the US off its prized Triple A rating.”
Rating agency Fitch also said that Mr Obama needed to act quickly to avoid the cliff next year.
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“From an economic and sovereign credit perspective, the most
important policy priority for the President and Congress is reaching
agreement on a deficit reduction plan backed by clear targets and
specific tax and spending measures that would firmly place US public
finances on a sustainable path over the medium to long term,” the agency
said.
Meanwhile, developments in Europe served to dampen investor
sentiment. The European Commission today slashed its 2013 combined
growth forecast for countries that use the euro from 1pc to 0.1pc and
confirmed that the 17-nation bloc will slip into recession this year.
Thanks to: http://jhaines6.wordpress.com
Posted on November 7, 2012
Global stock markets, which initially greeted the
re-election of Barack Obama by creeping higher, have gone into reverse
as analysts look ahead to the so-called US fiscal cliff and new figures
raise fresh concerns over the health of the European economy.
Markets in Europe initially rose following Obama’s election victory. Photo: AFP/GETTY
By Ben Martin
3:35PM GMT 07 Nov 2012
The Dow Jones Industrial Average tumbled 1.8pc and the S&P 500
dropped 1.6pc this afternoon. The FTSE 100 is down 1.3 pc, while French,
Spanish, Italian and German have all fallen.
Republican contender Mitt Romney was seen by some financial analysts
as the more business-friendly candidate, while Douglas McWilliams, the
head of the Centre for Economic Business Research, told Sky News before
the election that the Dow Jones Industrial Average could spike by 500
points because his victory had not been priced in by the markets.
Now the election has been decided, analysts are also looking ahead to
the challenges posed by negotiations over the fiscal cliff, a
collection of tax rises and spending cuts that are due to be implemented
in the new year.
“Pressing issues such as the unresolved fiscal cliff are unnerving
markets, with fears that Obama will be unable to forge strong partisan
ties with lawmakers against his policies in order to come to an
agreement,” said Ishaq Siddiqi, a market strategist at ETX Capital. “As
we know, neglecting the fiscal cliff issue could shave a considerable
amount of US GDP, sending the country back into a recession and force
credit agencies to strip the US off its prized Triple A rating.”
Rating agency Fitch also said that Mr Obama needed to act quickly to avoid the cliff next year.
RELATED ARTICLES
Investors push FTSE 100 higher on Obama election 07 Nov 2012
Mitt Romney victory could cause US markets to soar 06 Nov 2012
“From an economic and sovereign credit perspective, the most
important policy priority for the President and Congress is reaching
agreement on a deficit reduction plan backed by clear targets and
specific tax and spending measures that would firmly place US public
finances on a sustainable path over the medium to long term,” the agency
said.
Meanwhile, developments in Europe served to dampen investor
sentiment. The European Commission today slashed its 2013 combined
growth forecast for countries that use the euro from 1pc to 0.1pc and
confirmed that the 17-nation bloc will slip into recession this year.
Thanks to: http://jhaines6.wordpress.com
