A smorgasbord of factors incentivised stock market participants to bank some profits after a more-than-decent run in recent weeks and months. These include a slowdown in manufacturing activity worldwide, signalling stuttering economic growth. The longest government shutdown in US history did little to maintain investor confidence, and private data gained relevance.
The stage is set for a fall of a few dollars in oil prices. Why? Because of deteriorating economic conditions, as illustrated by the recent weakness in equities. The Nasdaq Composite Index lost 1.90% yesterday, while its cousin, the S&P 500 Index, finished the day 1.12% lower.
Tuesday’s day of atonement in equities caused by the misgivings of powerful bankers has turned out to be a short-lived affair. After all, their predictions were for a future correction which might occur withing the next 24 months, not on some random day in November and only lasting for 24-hours and some 1 to 2 percent at worst.
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