US inflation hits Fed target August 15, 2013 The annual rate of inflation in the US hit the Federal Reserve's target in July, rising to 2.0 per cent from 1.8 per cent the month before (release). This came as US jobless claims – a key indicator of future unemployment levels – dropped off unexpectedly, prompting fears of an imminent tapering of the Fed's [...]
Fed needs more data before it can make a tapering decision August 15, 2013 Speaking ahead of US inflation data, St Louis Federal Reserve president James Bullard has said the Fed would need more data before it can make a a definitive decision about the timeline for tapering off its asset purchase programme. He reiterated that a decision to reduce the pace of asset purchases would not change the [...]
New York Report: Wall St falls as fears over Fed tapering weigh August 14, 2013 WALL Street stocks fell yesterday pressured by uncertainty about the Federal Reserve’s plans to withdraw stimulus, but European shares rose to 2-1/2-month highs after data showed the Eurozone emerged from recession in the second quarter. The euro slipped despite the encouraging euro zone economic data as higher US bond yields buoyed the dollar, while sterling [...]
US producer prices increase by less than expected in July August 14, 2013 Prices received for finished goods made by US producers increased by less than expected in July, according to data from the Bureau of Labor Statistics (release). Year-on-year, the producer price index (PPI) rose by 2.1 per cent, down from a 2.5 per cent rise the month and falling short of expectations of 2.4 per cent [...]
US retail sales data points to pick up in consumer spending August 13, 2013 A GAUGE of US consumer spending rose in July at its fastest pace in seven months, a sign of quicker economic growth that could strengthen the case for the US Federal Reserve winding down its economic stimulus programme. Other data yesterday showed US small business optimism improving in July, while import prices rose less than [...]
New York Report: Shares lifted by better macro data and Apple August 13, 2013 US STOCKS rose yesterday after strong economic data boosted confidence, while Apple bolstered the Nasdaq after billionaire investor Carl Icahn took to Twitter to reveal a long position in the stock. Rising US retail sales in July, combined with a higher Zew German sentiment index and Eurozone industrial production, painted a rosier picture of the [...]
Wall St The Week Ahead: Stock investors pin hopes on retail therapy August 11, 2013 WALL Street’s spotlight will fall on the consumer this week. Investors will look to earnings from major retailers and data on consumer spending with the hope that the numbers will show that Americans have indulged in some retail therapy in recent weeks. Good news on the shopping front could provide some potential catalysts for a [...]
New York Report: Microsoft’s rise helps lead US shares higher August 8, 2013 US stocks advanced yesterday, snapping a three-day losing skid as a rally in Microsoft helped lift the technology sector. The three major US stock indexes all managed to shake off early losses as Microsoft shares climbed. The stock closed up 2.6 per cent at $32.89 in heavy volume. The S&P information technology sector index rose [...]
Why governor’s monetary revolution will eventually backfire August 7, 2013 ONCE again, I find myself in a minority. Most economists – and the overwhelming majority of commentators – are delighted with Mark Carney’s shake-up of monetary policy. But while I welcome the governor’s enthusiasm, I am unconvinced by his proposals. First, the theory. Carney’s thinking is that 1) there is plenty of spare capacity in [...]
London Report: FTSE slumps to 4-week low on tightening fears August 7, 2013 THE FTSE 100 share index closed at a four-week low yesterday on concerns the Bank of England (BoE) and the US Federal Reserve may start tightening monetary policy earlier than expected. A day after two Fed officials suggested the US central bank may cut the pace of bond purchases as early as next month, the [...]