Weak dollar makes markets nervous

CONCERNS over the dollar’s weakness has been undermining stock markets and further weakness is expected in the days ahead. Concerns about the dollar’s weakness as well as trade deficits and capital flows out of the US are making investors edgy.

They have used the bad news on the capital flows to sell some stock and, in a market that is still short of positive earnings projections, the reaction was to be expected, said analysts.

Just to prove the conventional view of what's happening, the Dow Jones opened up 37 points in early trading to reach 9661. The Nasdaq, which has made huge gains in the past 12 months, edged up 9 points also in early trading to reach to 1891 points Stuart Draper, head of research at Dolmen, Butler Briscoe says the pointers for the future are still "quite positive".