stock market forecast week sept 26 2011

stock market forecast week sept 26 2011 : U.S. stock markets were mixed on Friday as investors remained fearful that a slumping economy will cut corporate profits and that Europe could go into a devastating financial tailspin.

Wall Street hovered between positive and negative territory after a two-day period that knocked more than 6 percent off the value of U.S. stocks. Barring a sharp rebound Friday, this will be the worst week for the U.S. stock market since 2008.

In Asian markets, there were declines of up to 2 percent, despite attempts by the Group of 20 finance ministers, who are gathered in Washington, to assuage global fears. The G-20 ministers pledged late Thursday to do everything they can to keep the sovereign debt crisis in Europe from spreading.

But investors are increasingly skeptical of the ability of political leaders, particularly in Europe, to chart a course forward that does not involve Greece defaulting on its debt and the resulting risk of failure of many banks across the continent.

European Central Bank governing council member Klaas Knot was quoted Friday in the Dutch daily Het Financieele Dagblad as saying that a Greek default “is one of the scenarios. I’m not saying that Greece will not go bankrupt,” Knot said, though he added that bankruptcy was “not necessary.”

In addition, growing concern about China’s slowing economic growth, and a decision by Moody’s to downgrade eight Greek banks, stoked the uncertainty that has fueled a losing week.

Investors are fleeing from risky stocks toward assets viewed as safer, particularly U.S. Treasury bonds; the government needed to pay only 1.73 percent Friday to borrow money for a decade, the lowest level on record.

watch market outlook for weekly september 26 2011

Next week the markets will be dominated by news coming out of Europe, especially any new information about a possible Greek default. Expect possible window dressing as the quarter comes to an end. Laura Mandaro Joins Bob O'Brien and John Shipman on The Markets Hub.For the latest updates on the stock market, visit Stock Market Today

stock market forecast week september 26 2011, U.S. economic sept 26 2011, asian market outlook sept 26 2011, will stock market crash week september 26 2011, European markets sept 26 2011, Hong Kong’s Hang Seng, Germany’s DAX, Japan’s markets september 26 2011. For the latest updates PRESS CTR + D or visit Stock Market news Today

Related Post: