-Caveat Lector- <oh i do hope not... it is *too* amusing to see the euro valued higher than the dollar..*
Thursday, 18 July, 2002, 05:58 GMT 06:58 UK Markets hope the worst is over A morning bounce in Asia has given investors heart Share prices around the world have steadied, amid mounting hopes that two months of sharp declines may be over. Japan's Nikkei share index closed up 2% at 10,498 points, leading Asia higher, after Wall Street stocks closed up on Wednesday. The markets' months of misery New York Dow: Down 17.5% from 17 May peak London FTSE: Down 20.5% from 15 May peak Frankfurt Dax: Down 19.3% from 15 May peak Paris Cac: Down 23.1% from 15 May peak Tokyo Nikkei: Down 13.2% from 20 May peak US shares had surged at one point, but the froth came off by the end of the day - a sign that the mood is still uncertain. Now, all eyes are on the long list of US corporate results due later in the day. US results have been mixed so far, but analysts take comfort from the fact that investors are starting to pay attention to fundamentals, and may be shrugging off the gloomy mood of the past few weeks. Results roster The main dampener on the market is now the fear that Thursday's earnings statements will disappoint investors. Until corporate America cleans up its act or earnings get better, this looks like a technical bounce James Volk, DA Davidson Some of America's biggest hi-tech firms are scheduled to report results, including Microsoft, eBay, Nortel Networks and Sun Microsystems. On Wednesday, investors faced a more mixed bag, including Citigroup, Ford, Boeing, Coca-Cola and IBM. Although the news was far from uniformly positive, results from Ford, Coca-Cola and IBM were all cheering. Companies count Optimists hope that company results could generally send out a positive signal, reminding investors that share prices are based on corporate earnings first and foremost. Could things be starting to look up? While the mood in the market has darkened, economic fundamentals have remained more or less favourable, and companies have tended to report solid trading conditions. The markets' somewhat muted response to Wednesday's results - the Dow Jones index closing just 0.7% higher at 8,534.17 points - was based on the lack of trust in corporate accounts since the Enron collapse, however. "Until people get their courage back, until corporate America cleans up its act or earnings get better, this looks like a technical bounce, and technical bounces have not had any legs in the past," said James Volk of DA Davidson. Two months of misery Major stock markets around the world have now lost up to one-quarter of their value since the recent peak in mid-May. Many have plumbed depths well below those hit after 11 September: the FTSE 100 index, for example, has hit lows not seen since the end of 1996. After 11 September, all major markets plunged, but recovered sharply towards the end of the year before treading water in the first quarter of 2001. The recent sharp declines - sparked by the admission that telecom giant Worldcom had exaggerated its profits - have caused consternation among policymakers and consumers alike. Falling share prices generally lead consumers to cut spending, epecially in the US, and could push the global economy back towards the recession it flirted with late last year. How far will they fall? Key stories Shares edge higher FTSE falls below 4,000 Euro breaks $1 barrier Analysis Holes in the ceiling Bottoming out? Why markets fall How it affects you Don't panic 'Safe havens' History of crashes IN DEPTH Corporate scandals TALKING POINT Are you affected? The Markets: 8:18 UK FTSE 1004184.4- 6.2 Dow Jones8542.48+69.4 Nasdaq1397.25+22.0 FTSE delayed by 15 mins, Dow and Nasdaq by 20 mins See also: 18 Jul 02 | Business Relief for battered US markets 16 Jul 02 | Business Shares close lower on Wall Street 16 Jul 02 | Business More gloom from US tech sector 16 Jul 02 | Business US recovery on track, says Greenspan 16 Jul 02 | Business US Senate unveils tough fraud bill 15 Jul 02 | Business WorldCom's woes 'go back to 1999' 15 Jul 02 | Business USA Inc starts to come clean on options Internet links: New York Stock Exchange Nasdaq London Stock Exchange The BBC is not responsible for the content of external internet sites Top Business stories now: Markets hope the worst is over TUC to 'press for employment rights' Regulator orders BT to cut web charges Blair ally faces union defeat Boss quits at AIB scandal unit Prescott to unveil £1bn housing plan Merrill faces fresh lawsuit Little respite for tech investors Links to more Business stories are at the foot of the page. <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. 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