By one measure, the markets have lost 38.5% this year. This is only surpassed by the loss of 38.6% in 1937. The last two sessions have added 3.9%, however the gains have come under light volume trading and this implies that there is still no strong conviction behind the advances a fact mainly due to low volume during holiday sessions. Perhaps investors have taken a cue from history, noting that 1938 added a 25% gain and have bought early hoping for better 2009.

Oil prices, despite trending under $40 for the majority of the day, shot higher by 14% in the second half of trading. The rise in prices comes from an announcement from Russia that they would cut off oil to Ukraine very shortly. February delivery rose $5.57 to settle at $44.60 a barrel on the Nymex. Crude inventory levels from the government rose by 549,000 barrels, well ahead of expectations.

Key economic data for the week starting December 22nd, 2008. Numbers shown are consensus estimates (market anticipates this value) and prior value.

Friday:
	10:00 ISM Index Dec 35.4 36.2

© HGH Associated Press

News Archive (from 10/1/2008 until 12/31/2008)