CHESSNOID

The global markets are down and continue their momentum from last week.  The fear is still based on the global recession as well as the US recession.

Asian stocks resume downward swing

Japanese shares staged a moderate rebound. The benchmark Nikkei 225 stock average rose 30.42 points, or 0.40 percent, to 7,679.50 in Monday’s morning session.

Elsewhere, Hong Kong’s Hang Seng Index has dropped around 5 percent and Australia’s key stock measure is trading about 1.8 percent lower.

In South Korea, the Kospi has skidded about 4 percent even as the country’s central bank slashed its key interest rate, by 0.75 percent, for the second time this month in a bid to boost the economy and reverse the market’s recent slide.

Of course, this will set the tone for the start of tomorrow for our markets. Right now the stock futures are all leaning downwards. The numbers aren’t scary even though that would follow the Halloween theme this month. 1-2% is normal now and 4-5% would be news worthy.

	Change	%Change	Level
	Dow	-138.00	-1.67%	8,123.00
	NASDAQ	-17.25	-1.45%	1,174.25
	S&P	-15.50	-1.79%	850.50

The futures were up modestly earlier in hopes for a substantial interest rate cut. I do believe that will happen and it will give us a bounce when it is announced. I just don’t think it will be a long lived rally. Investors are realizing that it doesn’t change the fundamentals of our sagging economy.

Stock Futures Gain as Traders Bet on Bigger Federal Reserve Rate Reduction

Oct. 27 (Bloomberg) — U.S. stock-index futures advanced, indicating the market may pare the worst monthly plunge in 70 years, as speculation the Federal Reserve will cut interest rates outweighed concern the global economic slowdown is deepening.

Traders increased bets that the Fed will cut its target for overnight loans between banks in half to 0.75 percent this week. Reports may show the U.S. economy shrank last quarter for the second time in a year as consumers and companies retrenched. More than 40 heads of state meeting in Beijing called for an overhaul of World War II-era banking rules.