And the data shows… (11-03-2008)

Wall Street suffered a further three digit loss on Monday as financial stocks were sold on fears of further losses due to the credit market, particularly after a rumor saying that Bear Sterns was facing a shortage of cash. Although the company dismissed the story as ridiculous, its share lost more than 11%. Other banks were also lower including Citigroup which was down 5.8% and closed below $20.

An Asia, although markets traded lower during the morning sessions, they eventually recovered and the majority of them closed in positive territory as exporters rose on a weakening yen in Japan and banks in the region came of recent lows, as according to some analysts they had been oversold. In Tokyo Mitsubishi UFJ had been trading at 5-year lows in the morning and yet it ended 1.76% higher while other major banks gained substantially.

In Europe stock markets advanced on Tuesday, as banks rallied and Vodafone Group gained on an upgrade by Goldman Sachs, while energy shares also contributed to gains as light sweet crude breached yet another level and made a record high of $109.20.

Back in the U.S., while futures were pointing upwards, investors will be looking at retail sales and trade balance readings, while a House Energy and Commerce subcommittee is set to examine whether recent private buyouts of telecommunications and media companies serve the public interest.

Source: ISFM