Optimism fading

Optimism fading
(01:53) Report

Jul 2 - The Dow closed lower for the third consecutive week as larger-than-expected job cuts added to signs a U.S. economic recovery could be sluggish.
Conway Gittens reports.

European stocks fall after grim industrial data

European stocks fall after grim industrial data
European markets fall after grim industrial data, ahead of expected subdued US open

http://finance.yahoo.com/news/European-stocks-fall-after-apf-15509211.html?sec=topStories&pos=3&asset=&ccode=

Germany's DAX fell 23.89 points, or 0.5 percent, to 5,083.37 and the CAC-40 in France was 2.65 points, or 0.1 percent, lower at 3,332.29.

The European Union's statistics office Eurostat revealed that industrial production in the 16 countries that use the euro slumped by 1.9 percent in April from the previous month. That was way more than the 1 percent decline expected in the markets and stoked worries that the recession in the euro zone may not yet have bottomed out, as some had hoped.

"April's euro-zone industrial production figures provide few signs that the negative effects from destocking and the collapse in global trade are waning," said Ben May, European economist at Capital Economics.

Industrial production plays a particularly important role in the European economy and its recovery, whenever it comes, will provide a clear indication that the worst of the recession is over.

Sharply lower industrial output was blamed for the massive 2.5 percent quarterly fall in the euro zone's first quarter gross domestic product. The recession in Germany, the euro zone's biggest economy, was even greater as demand for its high-value exports, such as cars and heavy machinery, slumped amid the collapse in global trade.

Meanwhile, the FTSE 100 index of leading British shares was down 12.57 points, or 0.3 percent, at 4,449.30 with Barclays PLC down around 3 percent after it confirmed the sale of its global investment unit to U.S. fund manager BlackRock Inc. for $13.5 billion.

China And Commodities: A Discussion

China And Commodities: A Discussion
China is buying up raw materials at a feverish pace, motivated by fear of a falling dollar. What does this mean for the U.S.?

(Source Forbes) Forbes gathered a panel of industry observers to discuss recent actions by China as it goes on a commodities buying spree. Our industry observers include David Joy, chief market strategist for Riversource Investments, Liz Ann Sonders, chief investment strategist for Charles Schwab & Co., and Bill Singer, shareholder in the Securities Practice Group of the law firm Stark & Stark.

Some background on China's recent commodities boom. Recent figures show it holds 1,054 tons of gold, up from 600 tons in 2003; it upped its imports of iron ore to 57 metric tons in April and also increased its imports of other commodities including copper and oil. Specifically, China purchased 399,833 tons of copper in April, a record, vs. 374,957 in March.
http://www.forbes.com/2009/06/04/china-commodities-dollar-intelligent-investing-debt.html

Jim Rogers: S&P Could Go to 50,000

Jim Rogers: S&P Could Go to 50,000

From The Business Insider, June 3, 2009:

Ahh, Jim Rogers, always good for a nice headline (see: above). In an interview with the Economic Times of India, the famously dramatic and bearish investor, hits on all his favorite themes, like the collapse of the West, the appeal of commodities and farmland, and of course inflation and the collapse of the dollar.

While he's negative on US assets -- he says he's gotten rid of all of his dollars, for the most part -- he advises against shorting this market.

It's a bear market rally. I was going to say I don't think S&P 500 will see new highs. But I have to quickly temper that by saying against the dollar because the S&P 500 could triple from here if they print enough money and the value of the US dollar collapses, then S&P could go to 50,000, Dow Jones can go to 1,00,000.

Which is one reason why I am not shorting stocks right now. Because there is a possibility of this sort of a thing. There is a possibility that stocks could go through unheard of levels, but would be in worthless currency. Read Article...
http://www.businessinsider.com/jim-rogers-sp-could-go-to-50000-2009-6