Analysis

	World Financial Market Summary for the week November 5th – 9th, 2007.

The concerns about the continuation of the mortgage crisis crashed the US stock indexes.   The Dow Jones index reached 13,200 points, a rebound from which is expected to 13,350 points. The resignation of the major American investment companies’ top managers and the writing-off of huge losses connected with the derivative instruments on mortgage bonds encouraged the sale of the banking sector shares. The bubble, which appeared during the recent months, should let out at least some air…
The weakening of the dollar against the yen is a consequence of all the above-described processes.
The further actions of the major bear will depend on the statistics on the American economy, which shall be announced this week. Basically, it wasn’t as bad within the last two weeks but the dollar was dropping anyway. Only after a disappointing British trade balance the American currency started to grow against the pound. The Euro did not keep up either, losing over 220 points from the historic highs of 1.4750. However, the European currency still retains the basic rising trend.
It’s too early to talk about the coming turn but it’s obvious that our correction scenario is close to being realized. Apparently the mortgage crisis will still bring about panic attacks in the market, which will mostly affect the commodity futures. The price growth in this segment will continue after a small break.