Credit markets are finally showing some signs of movement, giving hope that exchange traded funds (ETFs) and Wall Street will soon feel a little relief.
Meanwhile, Ben Bernanke is testifying in Congress today, and said another round of government stimulus could be a good idea, reports Jeannine Aversa for the Associated Press. Democrats have been pushing for one, while the Bush administration is cool to the idea.
Bernanke says the economy will probably be weak for several quarters, so Congress should consider such a package.
Lower interbank lending rates are giving new life to global markets, and most of the major world indexes rose today, reports Pan Pylas for the Associated Press. But even if Libor rates continue to head lower, the markets won’t be out of the woods because the economic slowdown might become more and more evident in the coming months.
South Korea is stepping up its own efforts to shore up domestic banks and keep its markets steady by saying that it will guarantee up to $100 billion in foreign debt, reports Choe Sang-Hun for the New York Times. This is in addition to another $30 billion it will pump into the banking sector.
Consumers continue to get a break with gas prices as they slip further below the $3 mark, reports Stevenson Jacobs for the Associated Press. Prices have fallen 29% since the July record of $4.114 a gallon, but they’re still 10 cents higher than one year ago.
Oil prices, meanwhile, are rising today. OPEC countries are alarmed by the falling prices and want a production cut.
The economy’s health has improved for the first time in five months in September on strengthening supplier deliveries and new orders, says the Associated Press. One economist says, though, that the trend is still down and that October will plunge.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.