With the squeeze hammering the worldâ€™s demand, which reflected directly on the gains of corporations, the Unemployment rates surged vastly indicating further weaknesses. To shock markets the US unemployment rates surged on Friday reaching to 8.1% above the prior reading and markets expectations.
The endless deterioration in the worldâ€™s growth and the continuous uncertainties in financial markets had postponed a recovery until the upcoming year; where previously all policy makers used to say that a recovery would be seen in the second half of this year, which I really doubt it!
We all know that this dilemma was restricted on the US markets but it managed to diffuse all over the world to knock down other rivals. Therefore, last week we saw some changes in the Euro area where the outlook had darkened especially after Trichet came out after reducing their rates down by 50 basis points.
Inflationary pressures, which are considered the main concern of the ECB, might be heading into negative levels as demand in the sixteen economies had stalled along with Crude prices that are still holding on the extreme low levels according to OPEC.
Based on those low crude prices, OPEC are considering trimming down their production for the fourth consecutive time in order dry off the supply in markets, boosting prices above $50 per barrel, yet the global recession taking place will continue to offset the effect of those rate cuts until a noticeable recovery will be sensed.
Our calendar for today lacks major fundamentals, satisfied only with the Japanese Eco Watchers survey for February, showing a noticeable improvement with the current climbing to 19.4 levels from the previous 17.1, along with the outlook reading rising to 26.5 from the previous 22.1 levels.
Yet on the contrary Asian indices tumbled in the early morning closing in red, Nikkei Index fell 1.21% or 87.07 points closing at 7086.03 levels, Hang Seng fell 2.20% or 262.80 points reaching to 11659.46 levels. Fear is still hovering in financial markets pushing the world indices into the red zone.
Then moving to the Swiss Unemployment rates, where the rate inclined in February to 3.4% from the previous 3.3%, alongside with the seasonally adjusted rates rising to 3.1% from the previous 2.9% that got revised up to 3.0%.
Finally, we have the Canadian Housing Start reading with expectations that the levels of started houses had dropped in February to 145.0 thousand from the previous 153.5 thousand, as the Credit woes and recession continue to cripple the growth of the worldâ€™s economies.
So dear reader this week is considered to be a light one compared with the previous weeks so lets just see what would the upcoming five days unfold to usâ€¦