Low volumes see Wall St tread water April 5, 2011 THE S&P 500 failed to break a key technical resistance level for a second day yesterday as low trading volume raised further questions about the market’s strength. The broader market index closed slightly below 1,333, a closely watched level as it represents double the low reached in March 2009. Trading volume was relatively low with [...]
Fed eyes inflation expectations April 4, 2011 The American Federal Reserve is “very, very focused” on inflation expectations, a top Fed official said yesterday. While Dennis Lockhart expects only a “moderate pace of inflation” in the US, policymakers will keep a close eye on potentially self-fulfilling consumer expectations for higher prices, he said. However, Lockhart expects consumer spending to remain subdued. “A [...]
WALL STREET WEEK AHEAD April 3, 2011 THE Standard & Poor’s 500 index is poised to hit its highest mark in nearly three years this week after more signs of life from the jobs market, but think twice before betting the house. Many investors are coming to the view that the US employment situation has turned a corner, but the risks that [...]
Banks tapped Fed for billions March 31, 2011 BANK of America went cap in hand to the Fed’s discount window twice more than perviously revealed, according to a slew of documents released by the Fed yesterday. It borrowed a total of $1bn (£624m) over two days in August 2007, in addition to $500m previously disclosed. The documents, which were released after a news [...]
Quarter-end dash pushes up Wall St March 30, 2011 US stocks rose yesterday as investors positioned themselves for the quarter’s end and the S&P 500 attempted to hold above a key technical level. Stocks advanced as money managers re-allocated positions for the end of the quarter, with the S&P 500 up 5.9 per cent. The S&P broke through 1,330, which was noted as a [...]
UBS: Barclays too big for UK March 29, 2011 BARCLAYS will have no choice but to consider leaving the UK, according to prominent UBS banks analyst John Paul-Crutchley. In a note to investors asking if the bank could be “the first to leave” London, Paul-Crutchley said yesterday that Barlcays and JP Morgan are “broadly comparable”, except that the Fed has given JP Morgan permission [...]
INDICES RISE BUT SO DOES UNCERTAINTY March 28, 2011 CFD MARKET STRATEGIST, GFT IT HAS been just over two weeks since Japan was hit by a devastating earthquake and tsunami, yet most major stock indices are already trading back at pre-crisis levels. This is despite the huge reconstruction costs faced by the country which have been estimated to be anywhere between 4 and 16 [...]
Fed officials clash over US policy March 28, 2011 Two senior US Federal Reserve officials yesterday revealed conflicting views on the economy. The Fed’s James Bullard proposed an early end to the controversial second phase of quantitative easing, giving a bullish outlook on US growth. However, fellow Fed official Dennis Lockhart defended the “current stance of monetary policy” yesterday evening.
Fed to start media briefings on policy March 24, 2011 Federal Reserve chairman Ben Bernanke is to hold media briefings four times a year in a historic shift to greater openness at the traditionally secretive US central bank. Bernanke will hold a rare question-and-answer session with reporters on April 27 following a regularly scheduled two-day meeting Fed meeting on monetary policy, the Fed has said. [...]
BoA forced to scale back dividend March 23, 2011 The Federal Reserve told Bank of America (BoA) to rein in its plans for a modest dividend increase, in a sign that regulators still view the lender as being financially weaker than its rivals. The largest US bank by assets did not disclose how much of a dividend increase it was looking for, and did [...]