by Jon S. Strebler
Monday offered a lot of the same: namely weakness in energy markets that kept downward pressure on stock markets. Crude oil dropped to $35/bbl, while natural gas hit its lowest price in 14 years. With little else to focus on, world stock prices slid once again.
European exchanges were down for the 5th consecutive day, London's FTSE 100 fell to its lowest level in 3 years, and most Asian indices were down 1 to 2% for the day, based on the usual suspects: Low oil prices, the rout in junk bonds, and the Fed's coming interest rate hike.
We thought investors had come to grips with the Fed's decision to raise rates and that it would end up being a non-event. But whenever other developments (oil, junk bonds) get people to worrying again, they once more wonder if the Fed's doing the right thing. And they respond defensively. ... Log in or subscribe to continue reading.