U.S. employers axed payrolls by a shocking 533,000 in November for the weakest performance in 34 years. Experts tell CNBC that the outlook for the economy is grim.
S&P 500 May Fall to 700 Points
With the VIX hovering in the 60s range, there is a high chance that the S&P 500 may trade in the 700 to 900-point range between now and year-end, says Diane Garnick, investment strategist at Invesco.
Greenback Likely to Remain Resilient
Even if November's jobs report shows a larger-than-expected loss, the greenback is unlikely to suffer much, says Olivier Desbarres, director of FX strategy at Credit Suisse.
Keep an Eye on Longer-Term Fed Rates
It doesn't really matter if Fed's rates fall to 0% but keep an eye on how much lower longer-term rates will go, in particular mortgage rates, says Dariusz Kowalczyk, chief investment strategist at CFC Seymour.
Risks of Aggressive Fed Rate Cuts
The Fed may make a 50 basis points rate cut later this month, says Thomas Lam, senior treasury economist & VP of global markets at UOB, after more dire U.S. economic data emerged. He outlines the risks the aggressive rate cuts will pose.
ECB Seen Bringing Rates Down to 1%
The European Central Bank may bring rates to 1% by the second-quarter of 2009, says Thomas Harr, senior FX strategist at Standard Chartered, after it surprised a larger-than-expected 75 basis point rate cut Thursday.
Pessimism Rules the Market
Pessimism is definitely ruling the market at this point, notes Tim Hornibrook, division director at Macquarie Global Investments, after crude oil fell almost 7% overnight.
Don't Count on China
Hans Goetti, CIO with LGT Bank in Liechtenstein believes that China would be unable to pick up the drop in U.S. consumption. He also paints a picture of what the global recession may look like.
China Won't Bail Out the West
The concept that China will bailout the global economy and that emerging markets are going to grow dramatically and support the U.S. is unfounded, according to Bob Parker, vice chairman at Credit Suisse.
China's focus is boosting their growth rate, Parker added.
Parker sees the China's fiscal stimulus packages amounting to $1.5 trillion by the end of the first quarter of 2009.
Yuan Depreciation is Reasonable
The recent depreciation of the Chinese yuan against the dollar is quite reasonable, thinks Jing Ulrich, MD & chairman of China equities at JPMorgan Securities.
Japan Can Ride on China's Growth
If you believe that the Chinese economy is going to be relatively more robust than the developed economies, then Japan has a "call option" on that as China is its #1 trading partner, says John Alkire, CIO of Morgan Stanley Investment Management.