Bloody markets in dramatic sell-off.
Markets in the United States, Europe, Australia and Asia continued to sell off experiencing the bloodiest days since the Lehman Brother bankruptcy and market recession in the autumn 2008.
Investors seem completely to have lost confidence in politicians and optimistic forecasts on growth in the US market.
Fear that the debt crisis in the periphery of Europe will hit Italy and Spain and the whole EURO-zone add to the dull mood and investors sell off of stocks.
National banks continue to protect their currencies, but the effect of Japanese Central Bank interventions on Wednesday, had a short-lived effect and was wiped out over night with stronger YEN against US.
Gold continues to be the bright spot reaching peak levels of 1680 before yesterday’s onslaught. Gold fell to 1640, has recovered and is at present trading on 1656.
Oil also fell dramatically on stagnating growth fears. Oil is now stabilizing on Brent USD 107.
Analysts continue to differ on the markets are in for a double dip recession or whether the sell-off offer a buying opportunity.
Treasury bills and private bonds are markedly up over the last couple of days.