As you probably know, the US is the world’s largest economy. When she sneezes, the rest catch a cold. The US nonfarm payrolls registered no growth while unemployment stayed at 9.1%
My speculation on Friday night was that US major indices would fall and by the closing she would turn positive? The US indices did not turn positive. My speculation was that soft or weak data would pressure the Feds and they would come to the rescue with an extension of monetary stimulus.
· Is there a change in focus
· Are investors not hoping for additional stimulus
· Would stimulus or QE3 have no effect on the economy this time or
· As US has a long weekend going into Labor Day, investors wouldn’t hold long positions.
Global markets weaken since, followed by Asia Pacific and probably Europe which focuses on extended sovereign debt ...
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