Oil and metal retreat a sign of what is to come?
Stock markets inkluding the dow are slumping on concerns that the slow, and on many markets non-existant, recovery of global economy are a sign of looming trouble and further decline.
Oil is taking a beating as demand falls further and the metal industries are also showing weak trends. Metals, mining and the manufacturors of related equipment tend to be a good and early indicator of industrial demand. When metals slump this normally means bad news.
Europe sentiment is also backing away from an earlier optimism which seems to have moved to Japan. Bank of Japan Governor Shirakawa aired a careful optimism as numbers came in a bit over expectation, but at the same time pointed out that “high downside risks” to the contry´s economy stilll remain.
In a nutshell: we are not out of this yet and perhaps this fall 2009 will be precisely that.
Related posts:
- Japan economy on comeback course
- Bank of Japan issues new warnings
- China manufacturing contraction sign of doom?
- Dow crunches optimism trend
- Asia down oil up and Bernanke in congress
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