The new quarter started with a serious retreat of the world markets due to disappointing jobs report issued this Friday.
The American markets met October with a serious decrease. The S&P 500 dropped 2,1 per cent lower, Dow Jones was down 1.6 per cent - the biggest weekly drop since July. The Nasdaq is also 1.6 per cent lower.
As trading opened in Europe, Britain's FTSE-100 lost 0.6 percent, Germany's DAX declined 0.7 percent and France's CAC-40 swooned 1.1 percent.
Japan's Nikkei 225 average dropped 2.5 percent, Hong Kong's Hang Seng lost 2.8 percent, Taiwan's index shed 1.8 percent, Australia's market lost 2.1 percent and Indonesia's benchmark was down 0.2 percent.
However, the most noticeable lowering happened on the Russian markets. RTS and MICEX met the news with a 4,4-5,5% drop - the most remarkable fall from the end of June. The analysts suppose that it is only the beginning due to the worldwide indecis correction that is going to deepen when the Q3 financial statements of the american companies will be published.
The data from the official job report issued this Friday turned out to be a cold shower for the investors. It ruined most of analytical forecasts. The unemployment rate of 9.8 percent (maximum for the past 26 years) was not a surprise, but the decrease of jobs was remarkably higher than expected - the loss of 263,000 jobs against 175,000 forecast. The information made it clear the recovery is going much slower than expected.
I scanned through several papers, but all of them were pretty objective. However, the Russian newspapers were a bit more worried about the forthcoming tendencies on the markets.
The Smart Money article gave the dry figures of the past events on the global markets, and mentioned the expected indecis correction in Russian sector due to the "long ignorance of external negative effects".
The Kommersant newspaper used a very promising title "Correction meets globalization" and pointed out the growth opportunities for the Russian markets. This piece turned to be my favourite due to concise narration and a few remarkable noted from the analysts. It also drafted a slight future forecast, however, without any advice to the traders.
The Financial Times summed up the market events for the week still emphasizing on the doubts raised by the jobs report, though inspiring it readers with the news from the technology sector.
However, the Times Online article was a bit "spooky" and "cast a shadow" on expectations about the recovery of the US economy. But, anyway, the authors tried to keep neutral, and equalled the bad news with some information on financial advantaged that were gained during this week by Man Group, Legal&General, Deutsche Bank and Smiths Group.
Mail Online didn't miss out the recent market decline as well. But, unlike other newspapers, the title was really optimistic - "Record quarter for the Footsie with best ever three-month rise". The authors amazed me with their skill of contradiction. They started with the most assuring "down, but certainly not out" to make a little historical overview and conclude the "stunning return" from March. The article is written in very vivid language that makes you read it to the very end following the "mouth-watring situations" and "fun and games" in various industries.
To resume it all, i want to say that it is hard to forecast the further market behavior basing only on the facts stated above. Apparently, the markets will try to recover losses on Monday morning, but back on topic I would definitely recommend you to read Kommersant, Mail Online and, of course, follow the immediate data on stock exchanges where all the rises and drops can be traced directly.
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