Stocks Continue to Unwind, Dollar Gains Height

The U.S stock market presented another disappointing session as economic data and news headlines weighed on the intraday session. The start of the session was characterized by a major drop as U.S traders were influenced by the Asian and European markets. The FTSE for example, finished the session with a loss of -1.65%, just above its 50 day moving average.

Weakness came as the Wall Street Journal posted fresh news that Moody’s Investors Service believes the U.S and the U.K need to trim their deficits otherwise their respective AAA rating could be jeopardized. Furthermore analysts at Fitch stripped Greece of its A-rated status. One must note that a part of the problem is due to Greece’s capital problems and high unemployment rate, which now lies at 9.2%.

Despite the intraday weakness, Obama gave it his best shot to try to support the markets, calling for new infrastructure projects and tax breaks for small businesses that will help the unemployment situation. Even thought recent numbers showed a decrease of 0.2% compared to September’s result and further jobless of only 11k, the current unemployment rate is still at double digit levels of 10%.

This time round it was the energy sector that weighed the most on the markets, closing with a loss of -1.70%. The financial sector dropped by only a mere 0.9%. The broader market S&P500 finished the session with a -1.03% loss, above major support.

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S&P500 Daily Chart

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