US vs UK : A Tale of Two Stock Markets
The gulf between the UK & US stock markets has rarely been more clearly illustrated. The Dow Jones Industrial Average (#Dow30) fell 13.4% from its high of 26,700, but has since recovered 62%. The Asian markets will be celebrating the Lunar New Year and hopefully will come back next week energised and ready to invest.
The UK100 (#UK100) did not fall so far at only 10.1%, but has since only managed to recover 40% of those losses. This would suggest that business confidence in the US economy is far more tangible than in the UK, where it remains fragile. We will likely see a greater recovery in both markets but whereas this will be seen as validation in the US, beleaguered UK investors who have weathered the recent storm are expected to sell into any rally at the first sign of daylight streaming across the position sheets.