The Financial sector continues its jittery episodes but this time rumors diffused in markets that the Europeans will face some distresses especially after the ongoing Credit Crisis continued to anchor the levels of lending and borrowings between banks. Bailout plans along with drastic interventions failed to spread back some tranquility in markets as banks will continue the gloomy chapter not really knowing when it will be over.
To make the situation worse Obama and his Treasury Secretary decided to postpone the release of their plan, which would be the final rescue for the US economy where it might be heading towards a mini depression; leaving markets with some pessimism that the introduced plan will not be enough to stop the sweeping failures in the world leading economy.
Based on that Dow Jones industrial average fell 0.12% or 9.72 points reaching to 8270.87 levels and NASDAQ fell 0.01% or 0.15 points reaching to 1591.56 levels, yet on the contrary, S&P 500 managed to close in green climbing 0.15% or 1.29 points reaching to 869.89 levels.
Delays are taking place, but the new US President insist on the fact that a plan must be approved, so it would be released before the mid of the current month. Where yesterday the Senates voted in favor for the $838 billion measures, winning 61 votes with and 36 against, though still their might be some chance to see part of the plan by the end of today.
With those turbulences in financial markets majors tumbled, the sixteen nation's currency fell reversing the gains that were seen two days earlier, now the pair is currently trading at 1.2893 levels retreating from a low of 1.2810. In addition, the US dollar weakened against the Japanese yen to currently trade at 91.27 levels.
Even the governmental owned companies continue to struggle where they might be in need for more money just to keep them going; Freddie Mac and Fannie Mae also might need more cash to keep them surviving. According to projections, 200 billion dollars are needed if the housing sector continues to weaken leading to huge failures in their assets.
The start of interventions took place with those two companies, last September Freddie Mac and Fannie Mae stood on the brink of filing for bankruptcy, where those two companies holds most of the housing mortgages in the United States and any further tumbling for those two companies will result to adding more disorders in the financial markets.
Moving to our fundamentals, our calendar contains major data from the Royal Kingdom, according to expectations the Trade Balance deficit must narrow due to the weakening British pound, along with the vast decline in the domestic demand, which is a result from the fading confidence, and the endless failures in the United Kingdom.
The Visible Trade balance deficit narrowed down to -8100 million pounds from the previous -8330 million, also the Non-EU trade balance had narrowed to -4800 million pounds from the previous -5304 million pounds; the total trade balance deficit narrowed to -4250 million pounds.
So more destructions are coming on the surface and the Europeans are facing more failures in their financial sector with expectations that they might be in need for more interventions.