Economic Jitters Dampen Global Markets
08/21/2008 12:00 am EST
More of the same this week as markets around the world gained a little and lost a little. However, a brighter picture emerged as oil continued to fall, bottoming to around $113/bbl, before recovering to close around $115/bbl. Energy and mining stocks sent bourses from Mexico and Europe, to Canada, a bit higher.
Investors took kindly to the news that energy companies bid almost $500 million to drill for oil in the Western part of the Gulf of Mexico, as well as the report that the increase in crude inventories was much higher than expected—9.4 million barrels vs. the 1.7 million forecast.
Investors in US dollars cheered as the dollar hit its 2008 highs against global currencies, amid reports that the US may possibly avoid a recession.
Globally, the Japanese markets took a hit as that country’s economic woes show no sign of letting up. But both the Hang Seng and Shanghai indexes nudged upward on news that the government of China may offer a stimulus package to brighten the outlook for its economy and stock markets. However, analysts remain wary since the earnings picture has not made great leaps forward.
Yet, many remain bullish on China, although not across the broad markets, as Jim Trippon tells us in this week’s Q&A.
And although Japan’s market is not yet staging a recovery, both Allan Nichols and Chris Gilchrist see some opportunities. Allan discusses the potential of a big-name turnaround stock, while Chris took some time separating the wheat from the chaff, and found a number of interesting Japanese funds that are paying healthy dividends.
Across the sea, Andrew McHattie finds that not all hedge funds are evil—or lethal—to investors.
Stay tuned to MoneyShow.com for daily updates from our domestic and international advisors, and don’t forget that you can view videos of interviews and Webcasts of workshops from our shows that feature many of the folks you regularly see in these pages.
Nancy Zambell edits Global Investing for MoneyShow.com. Her opinions are her own and not necessarily the views of InterShow or MoneyShow.com.