2012 has been interesting so far, with bullish movements across most sectors yet poor fundamental data. The markets appear to be confusing and choppy, so what are traders going to do?
Europe is still the biggest deal in everyone's eyes. The region has not created a bailout plan just yet, meaning that the Eurozone may take longer than expected to start getting itself back on track for success. On the other hand, Spain and Italy have recently conducted successful bond auctions, so global investors may actually be feeling more positive about the region after all.
These markets are crazy. There is no denying it. In the last month, our dollar has decreased by about 2%, the Dow Jones Industrial Index is down about 13%, and the Euro Stoxx 50, a stock index of Eurozone stocks, is down nearly 20%! Crude oil is down over 13%, from nearly $100 per barrel to about $83.50, in a month!
Just today, stocks in Asia and Europe fell broadly as investors dumped risky assets amid renewed concerns that the global economy could slip into lower growth or even the forbidden “R” word - recession.