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

FIFA Indictments Put Gold Cup Tournament Under Cloud

Experts say US indictments could lead to charges of other world soccer officials, and lead to major shakeup in sport's governance More

Video Seoul Sponsors Korean Unification Fair

At a recent even in Seoul, border communities promoted benefits of increased cooperation and North Korean defectors shared stories of life since the war More

Video VOA EXCLUSIVE: Iraq President Vows to Fight IS 'Until They Are Killed or We Die'

In wide-ranging interview with VOA Persian service reporter, Fuad Masum describes conflict as new type of fight that will take time to win 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.
Expelled from Pakistan, Afghan Refugees Return to Increased Hardshipi
X
Ayesha Tanzeem
May 28, 2015 6:48 PM
Undocumented refugees returning to Afghanistan from Pakistan have no jobs, no support system, and no home return to, and international aid agencies say they and the government are overwhelmed and under-resourced. Ayesha Tanzeem has more from Kabul.
Video

Video Expelled from Pakistan, Afghan Refugees Return to Increased Hardship

Undocumented refugees returning to Afghanistan from Pakistan have no jobs, no support system, and no home return to, and international aid agencies say they and the government are overwhelmed and under-resourced. Ayesha Tanzeem has more from Kabul.
Video

Video Britain Makes Controversial Move to Crack Down on Extremism

Britain is moving to tighten controls on extremist rhetoric, even when it does not incite violence or hatred -- a move that some are concerned might unduly restrict basic freedoms. It is an issue many countries are grappling with as extremist groups gain power in the Middle East, fueled in part by donations and fighters from the West. VOA’s Al Pessin reports from London.
Video

Video Floodwaters Recede in Houston, but Rain Continues

Many parts of Texas are recovering from one of the worst natural disasters to hit the southwestern state. Heavy rains on Monday and early Tuesday caused rivers to swell in eastern and central Texas, washing away homes and killing at least 13 people. As VOA’s Greg Flakus reports from Houston, floodwaters are receding slowly in the country's fourth-largest city, and there likely is to be more rain in the coming days.
Video

Video 3D Printer Makes Replica of Iconic Sports Car

Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video Al-Shabab Recruitment Drive Still on In Kenya

The al-Shabab militants that have long battled for control of Somalia also have recruited thousands of young people in Kenya, leaving many families disconsolate. Mohammed Yusuf recently visited the Kenyan town of Isiolo, and met with relatives of those recruited, as well as a many who have helped with the recruiting.
Video

Video US Voters Seek Answers From Presidential Candidates on IS Gains

The growth of the Islamic State militant group in Iraq and Syria comes as the 2016 U.S. presidential campaign kicks off in the Midwest state of Iowa.   As VOA’s Kane Farabaugh reports, voters want to know how the candidates would handle recent militant gains in the Middle East.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Film Festival Looks at Indigenous Peoples, Culture Conflict

A recent Los Angeles film festival highlighted the plight of people caught between two cultures. Mike O'Sullivan has more on the the Garifuna International Film Festival, a Los Angeles forum created by a woman from Central America who wants the world to know more about her culture.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.
Video

Video Iowa Family's Sacrifice Shaped US Military Service for Generations

Few places in America have experienced war like Waterloo. This small town in the Midwest state of Iowa became famous during World War II not for what it accomplished, but what it lost. As VOA’s Kane Farabaugh reports, the legacy of one family’s sacrifice is still a reminder today of the real cost of war for all families on the homefront.

VOA Blogs

World Currencies

EUR
USD
0.9205
JPY
USD
123.69
GBP
USD
0.6508
CAD
USD
1.2456
INR
USD
64.051

Rates may not be current.