E-Money Blog - Forex, CDF, Commodities - daily news and rates

After the tremendous shock on the trade market, many of the investors on the market are leaving the ship. This caused noticeable drop in some of the biggest indexes. As you may presume the Dow Jones industrial average (INDU) lost 1.4 percent. The Standard & Poor’s 500 (SPX) index lost 1.6 percent going obviously poor, and the Nasdaq composite (COMP) lost 1.5 percent. In the beginning of the day Microsoft index started quite good and held the attention of the investors, however in the afternoon the things have changed and the interest decreased drastically.

The start of the year is not quite full of hope, as the worries that the housing, combined with the credit market would lead the economy of USA to recession is pushing away the investors. One of the best analysts of the forex trade market has advised on CNN today that many of the people are falling into the trap of the panic and started to sell losing money. He also advised them to act upon the rational thinking and not the feelings since especially this thinkings are pushing the crisis further.
The other markets are doing a little bit better. An example the treasury ldropped the yield on the 10-year note to 3.56 percent from 3.71 percent late Thursday. Bond prices and yields move in opposite directions. In currency trading, the dollar fell versus the yen and rose versus the euro and the market is closing at 106.81 Yens per dollar and 0.6817 Euros per dollar.

A barrel of U.S. light crude oil on the New York Mercantile Exchange rose it’s delivery for March to rose $1.30 to $90.71 and finally the COMEX gold rallied $4.90 to $910.70 an ounce.

As of 11:13 a.m. EST, the Dow Jones Industrial Average fell 44.22 points, or 0.37% to 12056.71, the Standard & Poor’s 500 index fell 3.80 points, or 0.29% to 1321.39 and the Nasdaq Composite Index lost 23.90, or 1.02%, to 2316.12. The consumer-friendly Fox 50 dropped 5.08, or 0.53%, to 953.37.

Before the market opened this morning, the Fed slashed the benchmark interest rate by 0.75% to 3.5% in an emergency action. The central bank also cut the discount rate by 0.75%.

Info provided by FoxBusiness, full article is here.

This representation is based on the Reuters recent news. The indexes of the big Asian foreign exchange markets continue to loose their value. The panic caused by the upcoming USA recession suppressed the trade levels below the 8%. The most serious raze is on the India forex market, where the Sensex dropped with 11% and the deals were temporarily stopped.

It is expected that the devastating wave, raised on the Asian markets yesterday and during the night will hit with full throttle the US trade markets and Wallstreet today as yesterday was a day off for the markets. Before this hit it is expected that the wave will pass through the Europeans foreign exchange markets where it was noticed the most serious recession in the indexes since 11 of September 2001.

The interest in government shares raised dramatically as only salvation in the fond tempest. The industrial metals as copper and zinc, including in this group the petrol as well got noticeably cheaper due the prognosis that the interest in them by US and the countries from EU will drop.

The traders in Tokyo are commenting: “We’re like to be on funeral today. Nobody knows what will happen in New York today.” Until we know what is going on there we can’t do anything else but sell - is saying a dealer in U.S. investment bank in Tokyo.
We will continue to inform you about the actual state of the market today and the recent days.