US Economy fears panic markets

The spectre of a US default has been hanging over the markets for some time but with a weak US debt agreement now ratified in the States, the underlying sentiment is not good.

Global markets have fallen up to 2% on more negative news  from the US yesterday, coming from the US consumer, who just isn't consuming enough. This is more confirmation that the recovery in the US is weak and has added to the overall negative sentiment.

Further debt concerns, this time over Italy, has added to the  bearishness in all equity markets, which is why Gold is close to new highs and there is a general panic out of equities in case we are facing a double dip scenario.

Not a good time to be holding stocks and shares.