Bank of Montreal economic analyst Robert Kavcic has this cheery thought for us this evening:
Equity markets continued to bleed this week, with overseas and emerging markets moving to the frontline of the battle against the bears. Indeed, the 6.8% and 2.8% respective declines in the S&P 500 and TSX paled in comparison to 20%-plus shakedowns in Argentina and Korea, and the 10%-plus declines in Brazil, Mexico, Germany and Japan. With overseas markets tanking Friday morning and U.S. futures trading “limit down”, many were speculating that the NYSE circuit breakers would be used to halt trading (they were not). Whether you want to blame it on the moon—as in the 1998 Charles Dow award winning paper—or the fact that markets are digesting the increasing likelihood of a global economic and earnings recession—that’s more up our alley—the volatility is numbing.
If, however, you do prefer to look at the moon rather than underlying earnings, here’s one to keep you up this weekend: The last time the NYSE used its circuit breakers to halt trading was during the Asian financial crisis on October 27th, 1997. Monday, of course, is October 27th…
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