The stock markets around the world after FIFA world cup final 2010 looks sharp and upward as markets are steady and gaining around the world. The Dow, which was below 9,980 points last week is has now crossed 10,225 points which has shown enormous growth in the new york stock exchange. A similar trend was seen in Nasdaq and S&P 500 where they also showed signs of growth amid FIFA World Cup Final 2010.

On the other hand, the European and Asian markets have also shown positive inclination in stocks and foreign exchange market. The FTSE has gained more than 70 points in single day trading and it is expected that the FTSE forecast will be positive in future. The NIKKIE of Japan saw drop in 40 points but Hang Seng and Straits Times have seen +88 points and +10 points respectively. The Spanish Stock Exchange IBEX 35 have seen some dramatic downward trend after FIFA world cup but it is predicted that the stock exchange will soon recover after heavy losses it has witnessed since May 2010.

The Frankfurt Stock Exchange has seen positive trend and has increased to almost 2.3% since the winning of Germany against Uruguay securing it’s 3rd position in FIFA world cup 2010 which held in South Africa.

The Stock Markets around the world were seen under negative trend specially in China where the industrial companies dropped and banks of China were seen rising. The stock markets around the world were cautious as U.S. services reports were disappointing allowing investors to be cautious in making investment move.

On the other hand the wall street was seen rising and Dow is now unexpectedly rising above 10,000 points. Crude oil was seen dropping whereas the dollar also fell against yen. Euro currency exchange which was expected to rise also weakened. The forecasting of Jim Rogers was wrong on Euro which he gave a month back.

Negative market trend was witnessed in European markets as FTSE was up 2 percent to 5,080.55. Germany’s DAX opened 0.1 percent lower to 6,010.47. Investors believe that Fifa world cup semi final match which was held in South Africa between Germany and Spain caused DAX to fall this morning. France’s CAC-40 was on 1.3 percent to 3,529.65 and Jap’s Nikkei 225 stock average closed down 0.3 percent at 9,276.65.

The trading was bearish on Monday amid worries over US economy and job market. It is believed that the world’s largest economy is suffering whereas other figures indicate that China’s economy could also be effected and slowed down.

The NYSE Dow Jones is currently at 9686 points. The British Stock Market FTSE 100 was recorded flat at 4,836.28 whereas Germany’s DAX was recorded at 5,834.21 and France’s CAC-40 was recorded at 3,340.00. Shanghai index was down by the afternoon at 2363 points whereas Nikkie was at 9266 points.

On the other hand, the forex market also witnessed some fluctuation as dollar rose and euro declined. The world forex market will soon go down due to corrections but this process could take a week. The analysts believe that the giant economy is responsible for the recent economic downturns.

The job market news is not positive and that is the main reason why news media is not highlighting the recent 90,000 layoffs in US alone. This is a 44% increase from the first quarter of the year 2010 but the news is not welcomed by many as more job cuts are expected in the third and fourth quarter. A rise is seen when some private companies added 20,000 jobs but that is not enough for the downward job market trend.

It is analyzed that unemployment rate is 6% and job market being very strong but the question is for how long will the unemployment be faced by the people as the economy is moving downwards. Finance sector is the major sector which faced job cuts this year. In UK alone 8,000 job cuts has been witnessed and in US the job cut totals 19,000 in financial sector only. Financial sector is known to be the most critical sector of economy and any dramatic change in this sector indicates clear signs of danger. The biggest problem is that the governments are not taking this matter seriously and the news media is controlled by the government which helps in playing the same goal “not to create unemployment hype”. US job market is huge and those laid off can be switching jobs around other states but UK job market is different and the joblessness in UK is severe. The foreign students studying in Britain are jobless because the economy is a vacuum tube. learn more about UK Job Market

Dow have suddenly fallen below 10,000 points and is currently at -9880. Many analysts had forecast that the market would rise after a short fall but due to Euro downfall and North-South Korean crises as reported by the news media, the U.S. Stock Market is in doldrums. The investors have dumped the stocks as tensions gripped the world market. Nearly all investors are concerned about the fall of Euro which has fallen steeply, click to read about Euro News, Analysis and Forecast.

Nasdaq and S&P are sharing the agony as they have also witnessed downfall with the fall of Dow. NASDAQ being a technology market should had an upward trend but as the crises are serious, even the technology market is not safe for investments. The gold market has also fallen but investors are pretty sure that this would not be the recession of US stock market again. The downfall is still known to be for a short period and may not last long as analysts observed. The Oil prices have also witnessed a change of 3% in negativity. The U.S. stock market would witness a downfall of nearly 4% in 3 days period and would not recover soon as expected by the investors. Since Gold Investments are considered to be safer, the falling price of gold doesn’t attract investors because the economy is stable and outlook is positive.

India is the world’s largest gold-consuming nation. The share of gold in international market is 1.5X that of the U.S. although its GDP is only one-twentieth the size of the U.S. GDP. With its soaring rate of gold consumption, India accounts for 18% of the annual worldwide gold demand, while its share of global GDP on nominal dollar GDP is only 1.6%.

India is experiencing an 80% growth in gold investment following a relaxed trade and market limitations. The gold increased 242 per cent between March 1999 and March 2010 which is equivalent of an average annual return of 13.1 per cent and it also outpaced inflation which has increased by 30 per cent during the decade or by an average 2.7 per cent a year. Monetary authorities in India are not tremendously positive about the outlook of U.S. dollar thus their hedge against Dollar will help to set the stage for an alternative reserve currency/asset, an offer broadcasted by countries like China, France and Russia.

Despite the slump in the housing market in the past two years, property has produced the second highest return after Gold keeping PSU and BSE on third & forth respectively.

The decade of 2000 and especially the year 2007-08 saw a great boom in economic activity all over the world. And of course the leaders of this rat race were none other than the major holders of the international market i.e. America and some European states. This resulted in soaring prices of commodities, real estate and oil at breakneck speed. By mid 2008 prices went so high that it marked global inflation to historic levels. Domestic inflation reached 10-20 years high for many nations. Inflation also increased in developed countries but remained low as compared to the developing countries. This scenario caused the formation of economic bubbles largely consisting of the real estate bubbles all over the world.

GLOBAL RECESSION | Financiere.co.uk

Ironically and as predicted by many economists, especially in America, this booming economic activity resulted in the global financial recession. One of the major causes of the recession is the absence of a responsible role of states in the international financial market. There is always a huge risk of such recessions in non-government institutions like IMF, WTO and multi-national corporations rather than the states themselves controlling the global economy. The self-regulatory mechanism in markets, generally known as free market, is a utopia and not practicable in the long run. It might work for the economic leaders for a certain period of time, due to their leadership, but will ultimately fail as it failed for Asia, Africa & Latin America.

The global financial crises had been brewing up for a while, and it actually started to show its effects in mid 2007 and finally came out in the open after mid 2008. All around the world the real estate crashed and oil prices bulled, resulting in fall of stock markets and collapse of large financial institutions. Even the wealthiest nations had to come up with rescue packages and Bailout plans for their financial system. 300 banks were bankrupted only in United States due to the contemporary recession. In its repercussions, 10 banks were bankrupted in Europe. The story does not end up here, thanks to the trickle down effect, the global financial meltdown will effect everyone in this highly globalized world; from developed countries to developing and 3rd world countries.

Global economic recovery is in progress led by the emerging markets. The out-performance of the emerging markets is likely to remain a key feature in the year ahead as the global economy returns to positive growth. There will still be winners and losers, with financial markets satisfying the best and punishing the worst performers globally.
With the risks posed by inflation in the developing economies at this time, official interest rates are likely to be raised sooner and more aggressively in emerging markets. The Asian economies are on the road to recovery to lead the way with India possibly increasing its cash reserve ratio this month. The prospect of widening interest rate discrepancy should continue to strengthen Asian currencies in the year ahead.