Oil has been sliding today too. It might for some more time.The good news is that there is a real lowering of input costs for manufacturers. Economies under a threat of recession should heave a sigh of relief as an unexpected source. Consumers would see their real incomes rise. They could then buy more which is a great thing to happen to fast moving consumer goods. Natural gas should see a concomitant fall too. This should be welcome news for manufacturers.
Oil revenue earners will see falls in spending. Economies like Indonesia, Venezuela and Rusiia would be the worst hit. Europe is affected by Russia. Add to that geopolitical tensions created by a weak Russia will threaten European trade and markets. Asian markets , in the South East might be affected by the dollar increase. It is possible that Malaysian ringitt and Thai baht would be under severe pressure. A weakening of China will pressurise the Aussie dollar to lower levels.When in doubt, investors will flee to dollar assets. That is negative for the Latin Americans. Local investors will flee too from theses emerging markets in to US Dollar assets. BRICS looks wavering. ECB is still debating when and with December here, no firm decisions are likely prior to the New Year.
So we might see gold and other commodities continue to be in a bearish mode, with Asian stock markets slowing. Indian stock markets looks a bit carried away by sentiments as there is little to back up the eagerness for reforms.
An overall seller day but for USA buyrs may outnumber sellers. Some hope beyond Atlantic.
Oil revenue earners will see falls in spending. Economies like Indonesia, Venezuela and Rusiia would be the worst hit. Europe is affected by Russia. Add to that geopolitical tensions created by a weak Russia will threaten European trade and markets. Asian markets , in the South East might be affected by the dollar increase. It is possible that Malaysian ringitt and Thai baht would be under severe pressure. A weakening of China will pressurise the Aussie dollar to lower levels.When in doubt, investors will flee to dollar assets. That is negative for the Latin Americans. Local investors will flee too from theses emerging markets in to US Dollar assets. BRICS looks wavering. ECB is still debating when and with December here, no firm decisions are likely prior to the New Year.
So we might see gold and other commodities continue to be in a bearish mode, with Asian stock markets slowing. Indian stock markets looks a bit carried away by sentiments as there is little to back up the eagerness for reforms.
An overall seller day but for USA buyrs may outnumber sellers. Some hope beyond Atlantic.
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