FTSE 100 up sharply on US economic stimulus September 14, 2012 The blue chip index jumped sharply in early trading, as it consolidated gains in the US in the wake of QE3. Headline miners led the index up, with Ferrexpo jumping 15.15 per cent in early trade, as metal prices rose on hopes of increased demand. South Africa-focused Aquarius Platinum jumped 12.48 per cent, Evraz soared [...]
Gold spikes as Fed turns on the taps September 13, 2012 THE FEDERAL Reserve launched a third round of quantitative easing (QE3) last night, with Ben Bernanke pledging to buy an extra $40bn (£24.8bn) of assets every month until the economy recovers and unemployment falls in earnest. The Fed will also keep extending the average maturity of its asset holdings through the rest of this year, [...]
Why Ben Bernanke’s decision to launch QE3 is a bad mistake September 13, 2012 SORRY, but this is not the way to run an economy. There was a case for quantitative easing (QE) at the start of the financial crisis, and conceivably more recently too, to prevent the money supply from collapsing, in the US, in the UK and elsewhere. But not today – and especially not in America. [...]
FTSE closes at three-week high as data improves and optimism lifts September 13, 2012 BRITAIN’S benchmark share index rose to a three-week high yesterday, boosted by expectations of stimulus action from the US Federal Reserve, prospects of renewed merger and acquisition activity and a brightening technical picture. After the close of the UK market, the Fed was widely expected to unveil a third round of quantitative easing for the [...]
Wall St soars as Fed pledges fresh stimulus September 13, 2012 US stocks and crude oil prices rose and the dollar weakened yesterday as investors bet the Federal Reserve’s fresh dose of monetary stimulus would improve economic growth. The US central bank initiated another aggressive stimulus programme, saying it will buy $40bn of mortgage-backed debt per month until the outlook for jobs improves substantially as long [...]
Fed launches open-ended bond buying programme September 13, 2012 The US Federal Reserve this afternoon launched a third round of quantitative easing. It will spend $40bn (£24.8bn) a month on buying mortgage-backed securities, with no end date. Interest rates are likely to stay “exceptionally low” until at least mid-2015, the Fed added. US economic growth cooled in the second quarter, coming in at a [...]
Wall St flat as awaits action September 12, 2012 WALL STREET ended little changed yesterday, erasing early gains, as investors turned cautious before a Federal Reserve decision on another round of monetary stimulus to boost the economy. Stocks got a lift early after Germany’s constitutional court approved the new Eurozone rescue fund, which will allow the European Central Bank to buy sovereign bonds in [...]
FTSE treads water but miners drop after ominous statistics from China September 11, 2012 BRITAIN’S top share index pared early losses to end flat yesterday, with uncertainty regarding the outcome of a German court ruling on the Eurozone’s bailout fund and the US Federal Reserve’s likely stimulus plans prompting investors to avoid strong bets. However, analysts said sentiment was improving following some positive steps taken by policymakers in Europe [...]
Dow Jones hits five-year high in light trading September 11, 2012 THE DOW Jones Industrial Average closed at the highest level in nearly five years yesterday in a lightly traded session before key decisions in Germany and the United States that could give markets a further boost. Energy, industrial and financial firms led the advance. Contributing to gains by the Dow, shares of IBM rose 1.15 [...]
Fresh calls for asset purchases after US consumer debt shrinks September 10, 2012 US CONSUMER credit shrank in July, the Federal Reserve revealed last night, the first fall for nearly a year. The change surprised analysts and gave yet further impetus to the calls for another programme of asset purchases. Driven by Americans paying off credit card debt, consumer credit shrank by nearly $3.3bn (£2.1bn) in July, compared [...]