World Economies Wait for Bush's Speech

December 1, 2007 12:00:00 AM PST
President Bush will make the last State Of The Union Address of his administration, tonight.The President is expected to outline his goals before he leaves office, that include asking Congress to maintain troops in Iraq, extend the 'No Child Left Behind' programs and for leaders to pass an economic stimulus package.

The state of the U.S. economy continues to weigh heavily on the world markets. That along with concerns of a global economic slowdown sent overseas markets plunging today.

South Korea's market suffered its second-largest decline of the year with a 3.9% percent loss. "Some stocks were heavily sold due to concern about a further fall. The rumor on the bankruptcy of a European hedge fund particularly weighed on the market today" said Lee Young-Gon with Hanwah Securities.

Hong Kong's blue chip Heng Seng Index finished the down 4% percent. Significant losses were also recorded in India and Taiwan.

Market Analyst Francis Lun said, "I don't think we will see further catastrophic loss in another major bank. I think already the sub-prime mortgage is already catastrophic enough, not including another one."

Prior to Wall Street's open this morning, stock index futures were prepared for opening losses. The sub-prime mortgage losses and credit market concerns continue to worry investors.

The Fed will meet on Tuesday and it is expected that there may be yet another round of interest-rate cuts.

This week we'll also learn of the economy's fourth-quarter results and major companies are reporting their yearend results. Some analysts are at least are expecting these reports will bring encouraging news.


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