Stocks Fall On Fresh Global Economic Concerns
- SPX-
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Monday, April 23, 2012
Stock Market Commentary:
Growth Concerns From China to Europe Hurt Stocks:
Stocks and a slew of risk assets fell on Monday after a slew of economic and political data questioned the health of the global recovery. Overnight, China said its manufacturing sector contrcated for the sixth consecutive month which is not ideal. Germany’s manufacturing index also contracted which was also a surpise. Spain’s economy contracted in Q1 for the first time several years. The Dutch cabinet resigned after failing to pass much needed austerity measures. In the first round of presidential elections, French voters were mixed but largely expressed a negative view for the Sarkozy administration. According to CNBC.com, this was the first time an incumbent French president came second in the first-round vote in the present electoral system’s 54-year history. The second round will be held in two weeks. This bodes poorly for the political capital behind the current EU bailout plan. Especially, if citizens of other countries in the E.U. do not want austerity, the ramificaitons could be delieterious.
Market Outlook- In A Correction
From our point of view, the market is still digesting its strong move in Q1 of 2011. The major averages are currently struggling with their respective 50 DMA lines as investors digest a slew of earnings and economic data. As always, keep your losses small and never argue with the tape. If you are looking for specific help navigating this market, feel free to contact us for more information. That’s what we are here for!
