Fed balance sheet hits new high May 26, 2011 The US Federal Reserve’s balance sheet soared to a new record of almost $2.8 trillion (£1.7 trillion) in the past week as it pushed ahead with its QE2 bond-buying programme, its data showed yesterday. The balance sheet data, a sign of the level of its lending to the financial system, was up from $2.74 trillion [...]
Manufacturing dip affects US shares May 24, 2011 US stocks dipped in light volume yesterday as lingering concerns about a slowdown in growth more than offset gains in energy shares. Investors kept trimming large-cap technology positions, pushing the tech-heavy Nasdaq Composite lower. The S&P energy sector index rose 1.3 per cent, while its industrials index slipped 0.6 per cent, sending the market down [...]
FTSE rebounds but Wall St fall goes on May 24, 2011 UK stocks rebounded today as miners regained ground after grim falls yesterday, though final gains were small. The FTSE 100 ended the session 0.4 per cent higher at 5,858.41 but recorded a high of 5,884.66 in the day’s trading as investor confidence returned. Bargain hunters moved in on miners, which recovered along with metals prices [...]
Chicago figures hit US outlook May 23, 2011 American stock futures were hit yesterday after an official gauge of economic activity surprisingly dipped. The Chicago Fed national activity index for April fell to a negative reading of 0.45, from a positive reading of 0.32 in March. This was the lowest reading since last August and reversed three straight months of gains. Negative figures [...]
DEJA VU ALL OVER AGAIN AS QE2 ENDS May 23, 2011 A LITTLE over a year ago, Greece was in the headlines as the parlous state of its public finances became apparent. At the same time, the US Federal Reserve was planning an exit strategy from its first round of quantitative easing (QE), and there was a major volcanic eruption in Iceland. As the speculation grew [...]
QE2: one is not amused by the potential for US equity downturn May 23, 2011 THE sheer size of the numbers involved in the Federal Reserve’s quantitative easing program (QE2) can be difficult to comprehend. By comparison, Queen Elizabeth II receives a paltry £7.9m per annum from the Civil List. This is nothing compared to the $600bn of US Treasuries bought by the Federal Reserve during this cycle of quantitative [...]
WALL STREET WEEK AHEAD May 22, 2011 Signs of a Wall Street sell-off are all over the place, but US stocks might well survive another week relatively unscathed if investors keep betting on sectors less vulnerable to an economic downturn. Pressure for a correction in the stock market has been building up in the past few weeks as the euro and oil [...]
Fed seen as more hawkish May 18, 2011 THE FEDERAL Reserve should begin to normalise interest rates at the end of this year, according to several members of the Federal Open Markets Committee (FOMC) as revealed by minutes of the Fed’s 26-27 April meeting released last night. However, the committee is split, with others believing that “underlying inflation remained subdued” and “longer-term inflation [...]
WHAT THE OTHER PAPERS SAY THIS MORNING May 17, 2011 FINANCIAL TIMES FED SEEKS ANNUAL US BANK STRESS TESTS The Federal Reserve wants to subject US banks to annual capital tests, reserving the right to veto dividend pay-outs if they do not pass. A draft of the new rule is set to be approved by the Federal Reserve Board and put out for public comment [...]
EQUITIES ARE STRUGGLING AS QE2 ENDS May 16, 2011 MOST global equity markets are struggling to make headway following the sharp sell-off at the beginning of the month. Investors are shying away from stocks on concerns that valuations are looking stretched, and as a number of tailwinds which had previously offered support are now fading. In the US, the first quarter earnings season is [...]