World stocks fall amid fears of more economic woes

I went to look at my 401K this morning and everything was down. Frustrated, I googled this report from the AP:

Asian stocks tumble after World Bank projects more economic gloom; Europe shares down

* By Jeremiah Marquez, AP Business Writer
* On Tuesday June 23, 2009, 5:16 am EDT

HONG KONG (AP) -- Asian stock markets tumbled Tuesday, knocked by heavy losses on Wall Street after the World Bank warned of a sharper contraction in the world economy. European markets were lower in early trade.

Benchmarks in Tokyo, Hong Kong and elsewhere in Asia sank around 3 percent in a broad-based rout as the bank's gloomy forecast undermined hopes of a quicker end to the worst recession in decades. Crude oil prices and the dollar also declined.

Global markets have risen massively since March, with some like Hong Kong up nearly 60 percent, on signs the recession is leveling out and expectations of a return to growth in the U.S. in the second half of this year.

But the World Bank issued new and much more pessimistic forecasts. It expects the world economy to shrink by 2.9 percent and warned that a drop in investment in developing countries will increase poverty. The bank's previous forecast was for a 1.7 percent contraction.

The news added to growing unease in the market over a spring rally that many investors believe has pushed prices too high, too fast and overestimated the scope of any economic recovery. Wall Street's overnight drop also provided a catalyst.

"The markets have been overbought, and now the correction is beginning," said Peter Lai, investment manager at DBS Vickers in Hong Kong. "Investors are facing the reality again. People fear the liquidity and funds will start flowing out of the markets, so we're seeing profit taking."

Early in Europe, Britain's FTSE 100 fell 0.3 percent, Germany's DAX shed 0.1 percent and France's CAC 40 lost 0.5 percent. Stock futures pointed to modest gains Tuesday on Wall Street. Dow futures rose 13 points, or 0.2 percent, to 8,296 and S&P futures gained 0.6, or 0.1 percent, to 889.20.

In Asia, Japan's Nikkei 225 stock average lost 276.66, or 2.8 percent, to 9,549.61 while Hong Kong's Hang Seng shed 521.19, or 2.9 percent, to 17,538.36.

South Korea's Kospi lost 2.8 percent, Australia's index was off 3.1 percent and Taiwan's benchmark dropped 2.3 percent. Shanghai's main stock measure traded lower by 0.1 percent. India's Sensex lost 1.2 percent.

As expectations of higher economic growth wilted, so did shares of resource companies, which have bloomed in recent weeks. BHP Billiton Ltd., the world's largest mining company, slid 4.1 percent in Australia, and heavyweight oil company PetroChina shed 4.5 percent in Hong Kong.

Whether the markets suffer more declines in the coming days could well hinge on figures due this week on U.S. housing, incomes, gross domestic product and other indicators.

Investors will also pay close attention to the U.S. Federal Reserve's comments on the state of world's largest economy when it concludes a two-day policy meeting on Wednesday. The central bank is expected to leave its key interest rate unchanged at close to zero.

Any selling, though, could be offset by institutional investors with large cash holdings looking to get into the market at a lower prices. Such liquidity has helped drive the recent surge in global markets.

About $508 million of fresh money flowed into equity investment funds in the week ending June 17, according to a survey by EPFR Global, a Boston-based firm that tracks global fund flow data.

So-called emerging market funds accumulated the most money, with Asian funds outside Japan reaping some $693 million, helping make up for outflows in the U.S., Japan and Europe. It marked the 15th straight week that emerging market funds took in new money, EPFR said.

Overnight U.S. traders, also unnerved by the World Bank report, dragged stocks to their largest declines in two months.

The Dow fell 200.72, or 2.4 percent, to 8,339.01, its lowest finish since May 27.

The Standard & Poor's 500 index fell 28.19, or 3.1 percent, to 893.04, also leaving the index with its biggest slide since April 20 and erasing its advance for the year.

Oil prices fell on expectations demand will remain weak. Benchmark crude for August delivery was down 64 cents at $66.87 in late Asian trade.

In currencies, the dollar weakened to 95.06 yen from 95.48 yen. The euro was higher at $1.3879 from $1.3844.

Copyright © 2009 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten, or redistributed without the prior written authority of The Associated Press.

Neda: YouTube Video Too Distressing to Ignore

As Father's Day draws to a close I am reminded about the seriousness of the civil unrest in Iran.

Neda: YouTube Video Too Distressing to Ignore

No New iPhone for me!!!

This is why:

The Fantasia Collection

New York City - June Gloom?

A friend in LA keeps telling me about the "June Gloom" that they are currently experiencing. Today was another nasty, rainy, day in NY so I thought it might be one of these so-called "June Gloom" days. I asked my Grandmother if she ever heard of "June Gloom." She is 89 years old (pushing 90) so I thought for sure she would have.

She didn't. So, I went to Wikipedia to find out exactly what this "June Gloom" is.

Apparently, it is basically condensation above the water on the coast also known as the "marine layer." The "marine layer" turns into "clouds" and the condensation that form the clouds is eventually evaporated by the sun - in other words "burns off."

A lot of people use terms but don't really know exactly what they mean. Now that I know I will feel free to use these terms going forward.


June Gloom
From Wikipedia, the free encyclopedia

June Gloom (also May Gray) is a California term for a weather pattern that results in overcast skies with mild temperatures during the late spring and early summer. The condition is prevalent in many parts of the world where marine stratus or stratocumulus clouds are common, particularly off the western coasts of continents—especially off Peru, Namibia, Western Australia, and California. Such cloud systems are persistent year-round off the coast, yet in certain seasons they blow ashore and create the gloomy "May Gray" effect on land. The June Gloom phenomenon has also been known to occur during the early fall in California.

Early mornings during this period are typically foggy, with an occasional drizzle. The fog turns to low clouds by late morning and early afternoon. Finally, by late afternoon, solar heating is sufficient to evaporate the clouds. Often the overcast will be evaporated ("burned off") quickly inland, but will linger along the immediate coast.

In California, the number of days from May to June that are gloomy vary from year to year. Cooler ocean temperatures, associated with La Niña, usually foretell a more gray period.

June Gloom has been reported by some Californians to bring on symptoms consistent with seasonal affective disorder. It is often cited as a time of depression.

So even though NYC is not technically experiencing June gloom we are apparently experiencing a bit of "April showers bring May flowers" a month late!

Whatever you call it - it sucks!!! And it's very depressing.