Menu

What a difference a month makes. Standard & Poor's, the world's leading index provider, announced that the world's developed and emerging markets shook off a fear-provoking month of March with impressive returns in April. According to Standard & Poor's monthly global stock market review, The World by Numbers, developed markets posted a 5.15% gain in April after losing 8.95% in March. Likewise, emerging markets climbed 7.49% in April after falling 5.11% the month before.

Market down 27, financials down 1.7% and resources up 0.9% with oil hitting all time inter-day record and closing $3.65 at $119per barrel. SFE Futures predicted a 3 point fall in the market this morning.

NYSE Euronext reported strong transaction volume growth across most of its products and exchanges compared to the same period in 2007 and year-to-date.

A solid finish in the US on Friday night as slightly better than expected jobs figures, manufacturing data and a rise in the US dollar combined to push markets higher.

Potential IPO registrants are waiting for increased clarity and hoping for market momentum to carry them forward. According to the quarterly Ernst & Young LLP US IPO Pipeline Report, the first quarter of 2008 watched the wave of 2007 begin to flatten.

Either bond markets have taken leave of their collective senses, or they too are smelling the re-emergence of animal spirits among investors in equity markets. A month ago markets were warily waiting for the next disaster to hit after the Bear Stearns rescue: but $US100 billion worth of capital raisings by banks and other financial stocks in the US and Europe, the Fed's $US360 billion 28 day money Term Auction Facility funding liquidity in the US markets, and the Bank of England $US100 billion facility to support the UK banking sector, and its becoming a case of 'gloom, what gloom?'

Market down 77 on profit taking ahead of long weekend and perhaps in reaction to a market that went up 88 yesterday on a 104 point fall in Wall St. Option expiry may have something to do with it. Financials down 1.7% after strong rise yesterday post the ANZ results. Resources down with Woodside and Newcrest both struggling. Light volumes today.

Global Investor Confidence fell by 4.4 points to 72.8 from a revised March level of 77.2. Amongst North American investors, confidence fell 4.9 points from 83.2 to 78.3. European investors were even more pessimistic, and their risk appetite declined by from 87.7 to 76.8. Asian investors, however, were somewhat less gloomy and their confidence saw only a modest decline from 87.9 to 86.2.

Sometimes Wall Street resembles the Titanic, before it met an iceberg that didn't like it. Brokers, analysts, fund managers and the like dancing and twirling the night away, ignoring the gathering storm that only the Fed and some of its acolytes in small dark rooms can see.

The market is down 56, not even close to the 11 point gain the SFE Futures suggested this morning. It was down 13 at its best and down 51 at its worst.