subject: The Morning Outlook [print this page] The Morning Outlook The Morning Outlook
Friday ended in a big sell off, with the major indices dropping close to three percent in the last half hour of trading. Unsatisfying job figures herded investors away from U.S. markets and into alternative investments. The Euro is currently trading at 1.1977, a new low indicating a lack of confidence in the Euro-zone as a whole. Hungary is fabled to default on its debt amid the current debacle with Greece and the remaining countries within the PIGS acronym.
Gold is currently trading at 1,213.30 down 2.90 or .24%. gold has been climbing for the past two weeks but has remained volatile as investment banks get in and out inversely to the market.
Oil is at a new low, 71.43 down .08 or .11% in connection with overall market conditions. BP is currently trading at 38.43, up 1.27 or 3.4%. On Thursday BP executives announced that the oil well had finally been capped, although the fitting was looser than expected. Technicians are now concerned with managing the well's ventilation and the remaining leaks. Relief wells are also planned in order to harness more of the flowing oil.
Tar and oil have begun to reach U.S. shores; Pensacola Florida's sandy white beaches are being defended by locals with booms and other clean up materials in order to defend the shores. Zero sympathy is held for the Oil giant here in the U.S. and the road will be very long and rough for BP to regain both market cap and image.
It is difficult to hypothesize how the markets will act today with mostly flat futures and no breaking headlines. I cannot see any reason for markets to rally today barring anything wild occurrence.
