Factory boost for America’s slow recovery December 15, 2010 BROAD based rises in consumer prices and manufacturing were warmly received in the US yesterday, following the Federal Reserve’s final meeting of the year on Tuesday. Positive industrial production figures offer hope for the American economy as it stutters towards recovery. Overall production rose 0.4 per cent in November, despite a huge drop in automobile [...]
Weak banks drag on FTSE as Moody’s warns on Spain December 15, 2010 BRITAIN’S leading share index slipped back yesterday, snapping a four-session winning streak, with banks the worst performers as investors’ risk appetite waned on fresh eurozone debt concerns. The FTSE 100 ended down 9.03 points, or 0.2 per cent at 5,882.18, having finished at its highest close for 30 months on Tuesday after putting on 1.7 [...]
Look closer to home to play the emerging markets’ story December 15, 2010 EMERGING markets have been one of the most popular trades of 2010. If it wasn’t concerns about the outlook for developed markets and the desire for higher returns further afield, it was Fed-fuelled liquidity that was driving flows towards the developing economies. The case for investing in equities rather than bonds is becoming stronger by [...]
Fed’s doves will keep cash cheap December 14, 2010 INTEREST rates will stay “exceptionally low for an extended period”, the US Federal Reserve announced last night. And despite claims from home and abroad that it is fuelling a fresh bubble, the Fed will continue its lastest phase of quantitative easing (QE2), buying around $75bn (£47.5bn) of Treasury assets every month. Markets reacted to the [...]
Boost for US retailers as strong holiday sales offer hope for American recovery December 14, 2010 THE Fed’s second phase of quantitative easing (QE2) came under attack yesterday, after jumps in retail sales, business morale and inflation. Retail sales for November increased by 0.8 per cent, and figures for the previous month were revised upwards to show a 1.7 per cent rise. “Today’s figures suggest that QE2, announced on 3 November, [...]
Dow surges to close at a two-year high December 14, 2010 US stocks cut gains to end mostly flat after a late-day sell-off yesterday as yet another cautious statement from the Federal Reserve on the economy offset strong retail sales data for November. The Dow Jones industrial average was up 47.98 points, or 0.42 per cent, at 11,476.62 – its highest close since 8 September 2008. [...]
Looking ahead to 2011: some likely winners and laggards December 14, 2010 FROM sovereign debt crises threatening the very future of the euro to currency wars and more quantitative easing, 2010 has been an eventful year in the foreign exchange markets. Currency traders will be pleased to hear that volatility, which has been so characteristic of the FX markets since the crisis, is unlikely to disappear any [...]
US Fed to continue bond buying despite positive economic data December 14, 2010 STRONGER-than-expected US retail sales in November and rising producer prices have added to evidence that its economic recovery is gathering pace in the fourth quarter. But the Federal Reserve said the improvement was still too slow to bring down unemployment and confirmed it would still buy $600bn (£380bn) in bonds to stimulate growth and create [...]
DESPITE ALL US EQUITIES STILL CLIMB December 13, 2010 CFD MARKET STRATEGIST, GFT THERE has been a mixed reaction to the news that Congressional Republicans and President Obama have reached a deal to extend the Bush tax cuts. While a number of Democrats have expressed outrage that the cuts will continue for everyone, the package should be accepted. This helped lift US equities and [...]
Americans want Fed controlled December 9, 2010 More than half of Americans say they want to rein in the Federal Reserve, says a poll. The Bloomberg National Poll showed that 39 per cent of all Americans want the Fed to be more accountable, while 16 per cent want to abolish the Fed altogether. Republicans and independents are generally sympathetic to ending the [...]