Well, the week is ending on a sour note. All week we’ve seen the markets, jitter. And, today was no exception.
… The Turkish lira and the South African rand fell on Friday before recovering somewhat. The Hungarian forint and Russian ruble were less resilient, trading down 0.7 percent and 0.5 percent against the dollar by the end of the European trading day. …..
In Europe, Germany’s DAX fell 0.6 percent to close at 9,322.33 while France’s CAC-40 fell 0.2 percent to 4,170.02. Britain’s FTSE 100 dropped 0.5 percent to 6,509.26.
Wall Street traded lower as well, with the Dow down 0.8 percent at 15,727.91 and the S&P 500 down 0.5 percent at 1,784.70. …..
Japan’s Nikkei 225, the main index still trading, reversed early gains that were sparked by reported increases in inflation and factory output. Inflation is a possible sign of economic recovery in Japan, which has been plagued by falling prices during two decades of stagnation.
But a rise in the yen against the U.S. dollar was negative for exporting stocks, dragging the Nikkei down 0.6 percent to 14,914.53. The dollar was down 0.5 percent against the yen, at 102.23 yen.
….. Among stock markets not observing the holiday, India’s Sensex gained less than 0.1 percent and Thailand’s SET was up 0.4 percent. Australia’s S&P/ASX 200 added less than 0.1 percent and New Zealand’s benchmark gained 0.5 percent.
They’re nervous, and don’t know where to go. In shocking news, Americans spent more in December, but, income remained flat. Yes, shocking.
Now, typically, the markets will take the weekend and breath a bit, and calm down. And, I think they will, barring some unforeseen bad news. Which, is entirely possible.
These are just tremors. They can be harbingers of things to come, or they can just be tremors. But, it does speak to the incredible underlying weakness of the markets. They’re not on solid footing and the investors know it.