News / Economy

World Markets Mixed, but Dow Posts Gain

World Markets Mixed, but Dow Posts Gaini
X
June 21, 2013 11:13 PM
Global markets were mixed Friday after a turbulent week that saw the biggest one-day sell off on Wall Street in more than a year. The stock plunge was blamed partly on news that the U.S. central bank could slow its efforts to stimulate the recovering U.S. economy - and concerns about a slowdown in China. But some analysts say the global selling spree was an overreaction by investors who have grown accustomed to easy money policies aimed at kickstarting the U.S. economy. Mil Arcega has more for VOA.

World Markets Mixed, but Dow Posts Gain

Global markets were mixed Friday after a turbulent week that saw the biggest one-day sell off on Wall Street in more than a year. The stock plunge was blamed partly on news that the U.S. central bank could slow its efforts to stimulate the recovering U.S. economy - and concerns about a slowdown in China. But some analysts say the global selling spree was an overreaction by investors who have grown accustomed to easy money policies aimed at kickstarting the U.S. economy.

If the U.S. economic recovery is really gaining traction, as Fed Chief Ben Bernanke said Wednesday, then why did the Dow Jones index plunge more than 350 points on Thursday? Equities trader Jonathan Corpina said it’s because a healthier economy means less help from the U.S. central bank.

“Our economy is getting better, and now it’s time for us to see how we can do it on our own,” said Corpina.

The Federal Reserve has been buying $85 billion in securities every month to keep long-term interest rates low - making it easier for businesses to borrow. Some say the monetary stimulus has boosted home prices and helped reduce unemployment.  

Economics professor Steven Kyle, at Cornell University, has his doubts. He spoke to VOA via Skype.  

“We still haven’t seen [house] prices come back to anywhere like we’d like to see, and there are still millions of mortgages that are underwater [homes worth less than the mortgage]. And on the employment front, we are still in pretty bad shape. The unemployment rate has come down, but that’s more because people are leaving the labor force than it is because lots of them are getting jobs,” he said.

The Fed has said it would gradually reduce bond purchases as the economy strengthens and unemployment declines. Meantime, financial markets have benefited greatly. Despite fears of a Fed pullback and worries about China’s slowing economy, market economist Max Wolff says there’s no reason to panic.  

I think all-in stocks probably turn in a pretty decent year. But, I mean I've been on the record for a while saying this: I think we probably reached our maximum in April or May, I don't expect us to be above that in a meaningful long-term sense at year-end," said Wolff.

Cornell professor Steven Kyle says investors overreacted. “I do think it’s a little bit overblown, but the fact of the matter is, those guys like to be the first one out the door whenever there’s a change in the market.”

European stocks were down, while Asian and U.S. markets were mixed on Friday as the dollar gained strength and bond yields rose higher. Despite choppy trading on Wall Street - the Dow settled into positive territory, in time for the closing bell.

You May Like

Turkey: No Ransom Paid for Release of Hostages Held by IS Militants

President Erdogan hails release of hostages as diplomatic success but declines to be drawn on whether their release freed Ankara's hand to take more active stance against insurgents More

Audio Sierra Leone Ends Ebola Lockdown

Health ministry says it has reached 75 percent of its target of visiting 1.5 million homes to locate infected, educate population about virus More

US Pivot to Asia Demands Delicate Balancing Act

As tumult in Middle East distracts Obama administration, efforts to shift American focus eastward appear threatened More

This forum has been closed.
Comment Sorting
Comments
     
by: Mombasa69 from: A safe Bunker in a forest
June 21, 2013 11:51 AM
Recover Some Ground, lol not right now they haven't ah let's see, -46 atm...

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
NASA’s MAVEN Probe Enters Mars Orbiti
X
September 22, 2014 9:20 PM
NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video NASA’s MAVEN Probe Enters Mars Orbit

NASA’s newest Mars probe, called MAVEN, has successfully entered its designated orbit around the Red Planet. Scientists will use its sophisticated instruments to try to learn what happened to the atmosphere Mars had a few billion years ago. VOA’s George Putic has more.
Video

Video For West Ukraine City, Conflict Far Away Yet Near

The western Ukrainian city of Lviv prides itself on being both physically and culturally close to Western Europe. The Russian-backed separatists in the eastern part of the country are 1,200 kilometers away, and seemingly even farther away in their world view. Still, as VOA’s Al Pessin reports, the war is having an impact in Lviv.
Video

Video Saving Global Fish Stocks Starts in the Kitchen

With an estimated 90 percent of the world’s larger fish populations having already vanished, a growing number of people in the seafood industry are embracing the concept of sustainable fishing and farming practices. One American marine biologist turned restaurateur in Thailand is spreading the word among fellow chefs and customers. VOA Correspondent Steve Herman reports from Bangkok.
Video

Video Chinese Admiral Key in China’s Promotion of Sea Links

China’s President last week wrapped up landmark visits to India, Sri Lanka and Maldives, part of a broader campaign to promote a new “Maritime Silk Road” in Asia. The Chinese government’s promotion efforts rely heavily on the country’s best-known sailor, a 15th century eunuch named Zheng He. VOA's Bill Ide reports from the sailor’s hometown in Yunnan on the effort to promote China’s future by recalling its past.
Video

Video Experts Fear Ebola Outbreak ‘Beyond Our Capability to Contain’

Each day brings with it new warnings about the deadly Ebola outbreak already blamed for killing more than 2,600 people across West Africa. And while countries and international organizations like the United Nations are starting to come through on promises of help for those most affected, the unprecedented speed with which the virus has spread is raising questions about the international response. VOA's Jeff Seldin has more from Washington.
Video

Video Natural Gas Export Plan Divides Maryland Town

A U.S. power company that has been importing natural gas now wants to export it. If approved, its plant in Lusby, Maryland, would likely be the first terminal on the United States East Coast to export liquefied natural gas from American pipelines. While some residents welcome the move because it will create jobs, others oppose it, saying the expansion could be a safety and environmental hazard. VOA’s Deborah Block examines the controversy.
Video

Video Difficult Tactical Battle Ahead Against IS Militants in Syria

The U.S. president has ordered the military to intensify its fight against the Islamic State, including in Syria. But how does the military conduct air strikes in a country that is not a U.S. ally? VOA correspondent Carla Babb reports from the Pentagon.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid

World Currencies

EUR
USD
0.7768
JPY
USD
108.84
GBP
USD
0.6124
CAD
USD
1.0999
INR
USD
61.042

Rates may not be current.