Forex News and Rumors

Losses in China Drag Down Stock Markets

Worries that signs of recovery in China are the result of government spending and cannot be sustained for the long term has spooked investors, raising fears that stocks are overpriced.

“Global markets are entering a crucial period: with questions being asked of the global recovery’s longevity as key sources of stimuli pass their peak, confidence in the outlook may not be so readily found amongst investors as was so clearly the case in the first half,” said Neil Mellor, analyst at Bank of New York Mellon in London. More

Oil Falls to Below $69 on Consumer Confidence Concerns

One day after gaining nearly 3 percent, world oil prices tumbled on falling consumer confidence and declining stock prices. New York’s main futures contract, light sweet crude for delivery in September, was down 39 cents to 68.80 dollars a barrel, while Brent North Sea crude for October delivery dipped 60 cents to 71.77 dollars a barrel in midday London trade.

“Crude prices were trading lower (on Wednesday), relinquishing earlier gains as crude markets continue to take its cue from equity markets, which are weaker today,” said analyst Nimit Khamar. More

Canadian Inflation at 56-Year Low

Statistics Canada reports that Canada’s inflation rate fell by 0.9 percent in July, matching a 56-year low. Energy prices have declined by 23.4 percent from July 2008. More

Buffet Points to Government Debt as Risk to Recovery

Billionaire investor Warren Buffet said today that the massive debt load being carried by governments – particularly in the United States – poses a threat to the pace of recovery.

“Enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects,” Buffett, noted. “For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself.” More

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