Gold hits new record high against dollar April 6, 2011 GOLD soared to a fresh record high in New York yesterday, explained widely by spiralling inflation and tumbling confidence in the US dollar. Silver also spiked, to a 31-year high, with investors turning to both metals as “safe havens” amid economic uncertainty and historically accommodative monetary policy. “The record price of gold is only coming [...]
Demand for tech stocks lifts Wall St April 6, 2011 THE S&P 500 index inched upward on relatively light volume yesterday, with investors adding to winning positions in technology stocks, but avoiding large bets ahead of corporate earnings due next week. After days of struggling, the broader market index broke above the closely watched 1,333 level. The next closely watched technical point is 1,344, the [...]
Fed split as QE2 set to continue April 5, 2011 DIVISIONS within the US Federal Reserve were exposed last night, with the news that senior officials clashed over the controversial second phase of quantitative easing – dubbed QE2. “A few participants indicated that economic conditions might warrant a move toward less-accommodative monetary policy this year,” the March minutes of the Federal Open Market Committee (FOMC) [...]
Rush for safety sees gold surge April 5, 2011 PRICES of spot gold notched a record high yesterday while Brent crude ended above $122 a barrel, at a 2-1/2 year high, as Middle East unrest and fears over Portugal fuelled a drive for safety. Brent crude prices rose as worries about supply from oil-producing countries in Africa and the Middle East overshadowed China’s rate [...]
FTSE lags over China’s rate hike and European debt fears April 5, 2011 BRITAIN’S top share index edged lower yesterday as miners fell on concerns that an interest rate hike in China could hurt demand for metals and banks dropped on worries over European debt. The FTSE 100 closed down 9.92 points, or 0.2 per cent, at 6,007.06, having rallied 7.4 per cent off lows hit in March [...]
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 [...]