What is Powering World Markets Today?
What is driving world equity markets skyward? As for 1/3/2012, anyway, it appears NOTHING!
It started in Germany yesterday. Germany’s DAX skyrocketed by +3%. That is nothing less than an astounding gain. The DAX was the only major world stock exchange open yesterday.
The rest of the world’s markets followed suit today. As of this instant the Dow is +214.
Today’s World Financial News
The Financial Times of London (FT) is the world’s leading financial news publication. It puts the Wall Street Journal to shame for its narrow U.S.-centric coverage.
In this morning’s FT New York headlines, the most optimistic story was this one:
Economists see bleak year ahead
The coming year will rival 2009 for economic weakness as output is hit by the continuing debt crisis in the eurozone, according to a large majority of economists polled by the Financial Times.
That story was published the same day as the DAX went up as if it were a new Korean missile being tested by Kim Jong Uh!
There was no good economic news published yesterday or today.
None. Nada. Zippo!
Along Follows Asia, Europe and the U.S. Markets Today
Like cattle being led to slaughter, the rest of the world’s markets followed suit today; all up like a glowing mushroom cloud.
The major Asian markets opened over +1.5% and literally flew off the top of the chart.
Bolstered by Asia’s early response to yesterday’s DAX skyward heat-seeking missile, the European markets opened strong.
Not to outdone by Asia and Europe, New York markets opened way up and turned hotter than global warming in early trading!
And that’s the way it is… Tuesday, January 3rd… 2012!
There hasn’t been any substantially positive economic news in so long nobody remembers the last time.
Heck, the U.S. Q3 GDP gets revised down and the market pundits call THAT good news!
Though there has been minor signs of life in the U.S. economy lately, nobody in the world has any confidence whatsoever that there will anything other than political gridlock in the United States in 2012… as it sinks ever deeper into a sovereign debt pit it might never climb out of.
Orders of Asian goods are falling and Europe is an economic basket case.
So why are the world markets so happy today?
Please… someone explain it. I can’t.