STOCK MARKET WATCH -- Thursday, 20 September 2012

[Ghost Dog]

61. Concern Over Global Economic Slowdown

“We had a strong rally based on aggressive central bank actions, this week we’re getting the reality that economic activity is weak,” Alan Gayle, a senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion, said in a telephone interview. “The slowdown in China is not over and it is likely that Europe will officially enter into a recession.”

U.S. stocks rose yesterday as the Bank of Japan increased its asset-purchase target and sales of existing American homes rose more than forecast. The S&P 500 has advanced 16 percent so far in 2012, reaching its highest price relative to its members’ expected profits since 2010, as central banks around the world stepped up their effort to sustain growth.
China Manufacturing

A Chinese manufacturing survey pointed to an 11th month of contraction in September and Japan’s exports fell in August, supporting the case for increased stimulus as Asia’s growth slows...

... Euro-area services and manufacturing output also contracted in September. A composite index based on a survey of purchasing managers in both industries in the 17-nation euro area dropped to 45.9, a 39-month low, from 46.3 in August, Markit said today in an initial estimate.

U.S. equities extended losses as Labor Department figures showed jobless claims decreased by 3,000 in the week ended Sept. 15 to 382,000. That was above the median forecast of 375,000 projected by 49 economists surveyed by Bloomberg.

/... http://www.bloomberg.com/news/2012-09-20/u-s-stock-index-futures-drop-on-china-manufacturing-data.html