Stock Market Weakest In 4 Months

The stock market is not doing well. From US, Europe to Asia, all stock indices have been moving in only 1 direction - SOUTH. For the past 2 weeks, finance industry could easily have dropped an easy 10%. For example 3 days ago, SGX started off at more than $12.00/share but today is at a low $10.00 (almost 20% fall). Even a DOW Jones rally of more than 100 points yesterday did not help STI perform a comeback. STI down more than 60 points (-2%) today.

Stock/Equities performance is now poorer as compared to Aug-Oct period when the sub-prime was unveiled. Stock performance could be moving in the same direction in anticipation of US major banks reporting their last quarter financial reports next week. Overall market sentiment is bearish and this is evidently shown in Qian Hu. Qian Hu dropped more than 8% despite a 90% surge in year 2007 earnings. SGX down more than 7% despite more than 60% gain in 1HY08 earnings. DBS, UOB and OCBC are all at its lowest in 4 months.

US Federal Reserve must better react more aggressively to save the market. Central banks leaders should stop deceiving themselves by making irresponsible remarks saying US slowdown wil not affect local markets. It's time to wake up and implement necessary actions to boost the economy.

Is the US heading to recession? Some analysts are saying US is already now in a recession!