The question facing investors as they enter the first week of February is
what will it take to change the stubborn trends of global financial markets.
A glib answer appears to be: quite a lot.
One month into the new year, investors are still struggling to crawl out of the uber-bearish swamp that was 2008.
Stocks had a negative January. Relatively safe short-term government bonds and the U.S. dollar remained in favour. Gold continued a three-month upward climb. All very familiar.
Above all, the headwinds that have held investors in this pattern for more than a year are not only still there but spreading.
Concerns about a declining global economy, for example, can now be compounded by fears China will fare worse than previously believed. Hopes that the financial crisis is over, meanwhile, have been doused by new losses at various major banks.
To read more, double-click on the square brackets below:
MARKET REPORTS: > GLOBAL MARKETS-Investor patterns still stuck in the mire > EMERGING MARKETS-Unease as US stimulus sets up volatile mix > COMMODITIES-Losses narrow in Jan after seven month plunge
MAIN ECONOMIC AND FINANCIAL NEWS DRIVING GLOBAL MARKETS > Republicans demand changes to US stimulus bill > Obama pushes economic plan; cloud over health pick > China premier says buying US Treasuries depends on risk > China issues rural rescue plan to fight crisis > Fed's Lacker says Fed should not target specific markets > Fannie, Freddie expand effort to curb evictions > Obama, Hu discuss trade imbalances in call > US economic contraction deepest since 1982 > US Treasury Secretary Geithner meets regulators on bank plans
ANALYSIS RELATED TO CREDIT CRISIS > Bank clean up costs up as economies sink > China looks to broker gradual finance reform > Bad bank fix wins support at Davos > Obama nod to mortgage relief targets root of woes > Sea of US policy options raise mortgage bond angst > Taxpayer, banker interests clash over US 'bad bank' > Fed closer to buying Treasuries, but not there yet > Hold the champagne; US new home sales still ugly > Foreign banks face daunting task in Eastern Europe > Gold attracts more flows amid deepening recession
FACTBOXES: > Global financial crisis sparks social unrest > Federal Reserve statement from Jan 27-28 meeting > US states face daunting budget gaps > What US law on currency manipulation says > US economic stimulus bill moves through Congress > US economic challenges facing Obama > Europe's fiscal stimulus plans to tackle economic crisis > The Fed's evolving liquidity toolkit > Fed statement on MBS purchase program > Where has all the US bailout money gone - > Global interest rates in 2008 > ECB statement on dollar liquidity > TEXT-Fed statement from Dec 15-16 meeting > US facing potential $8 trln financial rescue cost > US banks announce capital infusions
Keywords: CREDITCRISIS/TAKEALOOK (New York Treasury Desk +1-646-223-6300) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
A glib answer appears to be: quite a lot.
One month into the new year, investors are still struggling to crawl out of the uber-bearish swamp that was 2008.
Stocks had a negative January. Relatively safe short-term government bonds and the U.S. dollar remained in favour. Gold continued a three-month upward climb. All very familiar.
Above all, the headwinds that have held investors in this pattern for more than a year are not only still there but spreading.
Concerns about a declining global economy, for example, can now be compounded by fears China will fare worse than previously believed. Hopes that the financial crisis is over, meanwhile, have been doused by new losses at various major banks.
To read more, double-click on the square brackets below:
MARKET REPORTS: > GLOBAL MARKETS-Investor patterns still stuck in the mire > EMERGING MARKETS-Unease as US stimulus sets up volatile mix > COMMODITIES-Losses narrow in Jan after seven month plunge
MAIN ECONOMIC AND FINANCIAL NEWS DRIVING GLOBAL MARKETS > Republicans demand changes to US stimulus bill > Obama pushes economic plan; cloud over health pick > China premier says buying US Treasuries depends on risk > China issues rural rescue plan to fight crisis > Fed's Lacker says Fed should not target specific markets > Fannie, Freddie expand effort to curb evictions > Obama, Hu discuss trade imbalances in call > US economic contraction deepest since 1982 > US Treasury Secretary Geithner meets regulators on bank plans
ANALYSIS RELATED TO CREDIT CRISIS > Bank clean up costs up as economies sink > China looks to broker gradual finance reform > Bad bank fix wins support at Davos > Obama nod to mortgage relief targets root of woes > Sea of US policy options raise mortgage bond angst > Taxpayer, banker interests clash over US 'bad bank' > Fed closer to buying Treasuries, but not there yet > Hold the champagne; US new home sales still ugly > Foreign banks face daunting task in Eastern Europe > Gold attracts more flows amid deepening recession
FACTBOXES: > Global financial crisis sparks social unrest > Federal Reserve statement from Jan 27-28 meeting > US states face daunting budget gaps > What US law on currency manipulation says > US economic stimulus bill moves through Congress > US economic challenges facing Obama > Europe's fiscal stimulus plans to tackle economic crisis > The Fed's evolving liquidity toolkit > Fed statement on MBS purchase program > Where has all the US bailout money gone - > Global interest rates in 2008 > ECB statement on dollar liquidity > TEXT-Fed statement from Dec 15-16 meeting > US facing potential $8 trln financial rescue cost > US banks announce capital infusions
Keywords: CREDITCRISIS/TAKEALOOK (New York Treasury Desk +1-646-223-6300) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.