Obama bad for economy? World markets plunge for the 2nd day

When Barack Obama’s election victory was declared yesterday, the Dow Jones Industrial Average dipped 312 points. Today it again fell by 121 points, as a second straight day of mass sell-offs put the blue-chip index on pace for its biggest weekly decline since June.


The DJIA fell 430 points in just 2-day after election, investors getting impatient with Obama

The Dow declined 121.41 points, or 0.9%, to 12811.32, its lowest close since July 25. The pullback followed a 313-point selloff Wednesday, and together the 3.3% decline marked the biggest two-day drop this year. “The thinking before the election was that it would remove some of the uncertainty, but it seems to have done the opposite,” said Tyler Vernon, chief investment officer at Biltmore Capital Advisors in Princeton, New Jersey.

“The mood of the market has certainly switched,” said J.J. Kinahan, chief derivatives strategist at TD Ameritrade, as investors monitor developments on the fiscal cliff and wait for more clues about Obama’s agenda. Investors were initially encouraged by two positive reports on the U.S. economy that came out before the market opened. The Dow climbed as much as 48 points in the morning but started to sink as sudden massive sell-offs came after the first hour of trading.

The Labor Department reported that the number of people seeking unemployment benefits fell 8,000 last week to 355,000, a possible sign that the job market is healing. Another report showed that the U.S. trade deficit narrowed to its lowest level in almost two years as exports rose to a record high.


Sudden sell-offs in the markets as the rich are angered by Obama’s victory

“With the election over and the fiscal cliff right at the front of everybody’s mind, coupled with more signs of trouble out of the euro zone, you’re seeing a lot of people take some money off the table,” said Sean Kelly, head of institutional equity trading at Knight Capital Group.

The declines in U.S. dragged down Asian markets. The fears that the U.S. economy is facing another huge economic crisis spurred a sell-off in Asian markets Thursday as Barack Obama’s re-election raised the spectre of another bitter stand-off in Washington. Investors fear a deeply divided Congress will not be able to reach an agreement to avoid a so-called fiscal cliff at the end of the year that many say will send the United States back into recession.

Tokyo tumbled 1.51%, or 135.74 points, to 8,837.15, Sydney fell 0.72%, or 32.7 points, to close at 4,483.8 and Seoul lost 1.33%, shedding 25.83 points to 1,911.09. Hong Kong skidded 2.41%, or 532.94 points, to 21,566.91 and Shanghai fell 1.63%, or 34.22 points, to 2,071.51.

The losses extended into Friday, with Tokyo currently down 0.9% while Hong Kong off 0.4%. South Korean shares drop 0.7%.


Europe, Asian markets dragged down by the sharp fall in the U.S.

The initial upbeat reaction Wednesday to Obama’s victory over Republican Mitt Romney was replaced Thursday with trepidation as the focus turned to the fiscal cliff, a combination of deep spending cuts and huge tax hikes to take effect on January 1.

“The focus has turned back to the economy after the U.S. election, with concerns over euro zone risk resurfacing while the fiscal cliff worries weigh on the local index,” said Kim Soon-young, an analyst at IBK Securities, adding that Asian shares could pare losses if China’s scheduled to-be released economic data is positive.

Source:

http://money.msn.com/market-news/post.a … 0f1697660a

http://www.theledger.com/article/201211 … c=pg&tc=ar

http://www.telegram.com/article/2012110 … 09454/1237

http://online.wsj.com/article/SB1000142 … 32390.html

http://www.reuters.com/article/2012/11/ … 7I20121109

http://www.nasdaq.com/article/asian-mar … Jx-jmc1fkY

http://www.channelnewsasia.com/stories/ … 45/1/.html

for some reason, gold and silver price went up. hmm

It may signal a period of instability… until January that is.

gold has always been the alternative

Have you ever wonder why our ancestors choose gold/silver as something of monetary value instead of other metals like copper, aluminum, zinc?

I have been thinking what if one day humans start seeing gold as ‘just another commodity’. Of course, it has been the way since 700 BC and is rather unlikely to change. But what if it does?

Gold was valued because of the cosmetic value and still is today.
It is even more valuable today because of its commercial value as well - usage in high end electronic equipment etc etc.

[quote=“mevotex”]Have you ever wonder why our ancestors choose gold/silver as something of monetary value instead of other metals like copper, aluminum, zinc?

I have been thinking what if one day humans start seeing gold as ‘just another commodity’. Of course, it has been the way since 700 BC and is rather unlikely to change. But what if it does?[/quote]

do you think gold will break 1800 this time?

In the past, during times of instability, there would be a rush to gold.

However, as of lately, gold has lost some of its appeal, the effect is like only 20-30%

true… if gold doesnt break 1800… hopefully we’ll see the price tumble to 13-1400… but with the easing by FED, dont think it will plunge that much … arghh!! im waiting it to tumble !!

Gold will tumble if everyone follows India. India is the world’s largest consumer of gold, and recently they switch their preferences to diamond. China is now set to surpass India as the biggest gold market.

http://www.mining.com/india-becomes-de- … ket-83985/

Now, what if China too, switch their preferences to jade?

Europe is done for, demands for jewellery falling.

my only hope is greece or spain/italy become mainstream headline either one bankrupt lol

Euro Crisis … benefit a lot of people i guess

indeed!