DON’T BET ON THE FED’S QE2 SHELL GAME November 8, 2010 CFD MARKET STRATEGIST, GFT We’ve just seen an incredibly significant week for the financial markets. Following the US mid-terms, the Republicans have control of the House of Representatives and have cut the Democrats’ Senate majority. While the new Congress won’t be in place until January, the Republican gains will influence the debate over the Bush [...]
THE TIPSTER November 8, 2010 The Bank of England’s quarterly Inflation Report should provide some excitement for the currency markets this week. All market participants will be eagerly awaiting what the report has to say about growth prospects in the UK and whether further quantitative easing remains a real possibility. Capital CFDs quotes a price of €1.1590-€1.1594 for sterling-euro. Walt [...]
Quantitative easing risks stoking a bubble in emerging market equities November 8, 2010 EXPECTATIONS of another round of quantitative easing in the US had been riding high for several months and last week Helicopter Ben gave the markets exactly what they had been clamouring for. Investors across the world wildly applauded the Federal Reserve’s decision last week to pump $600bn into the US economy and needed little excuse [...]
Wall Street falls as banks and strong dollar weigh November 8, 2010 WALL Street retreated from a two-year high yesterday, weighed down by financial stocks and a stronger dollar. The broad S&P 500 has risen five straight weeks, supported by the Federal Reserve’s plan to buy $600bn of treasuries to lower interest rates and reinvigorate a sluggish economy. With those gains, traders said most S&P sectors were [...]
WALL STREET TO KEEP ON CLIMBING POST-FED’S QE November 7, 2010 With the Fed confirming the latest round of quantitative easing and the Dow breaking above the April high of 11,258, this now becomes the first level of support for the index. WorldSpreads offer a two-point spread on the Dow Jones index. US crude oil was given a boost by the Fed decision and positive US [...]
CITY INDEX November 7, 2010 Q.Dear Sandy, will the FTSE 100 continue to climb in November? A.Traders have been digesting a raft of information over the last few weeks. With the $600bn injection from the Fed and President Obama’s mid-term elections out of the way, the market has not reacted negatively, unlike what many traders had expected. When markets behave [...]
WALL STREET WEEK AHEAD November 7, 2010 Wall Street navigated through three major landmines last week – the elections, the U.S. Federal Reserve meeting and jobs report – with barely a scratch. Now what? With earnings season winding down and a light economic calendar this week, the market will be left to its own devices to sort out its direction. A rise [...]
Dollar may devalue by a third, warns currency fund manager November 7, 2010 ONE OF Europe’s top currency fund managers has warned that the US dollar could devalue by up to 30 per cent in the next year as concerns over the state of the country’s ailing economy continue to grip the markets. Bob Arends, who runs the Henderson Horizon Global Currency Fund, predicts the dollar could fall [...]
Rest of the world itches for a fight with US November 7, 2010 Get ready for a “Shellacking.” President Barack Obama’s one word description of the drubbing the Democrats suffered in last week’s mid-terms equally well describes what the rest of the world fears it will suffer as a result of QE2. In recent days, commentators have argued that gridlock in Congress will be good for business. It [...]
Shares are back to 2008 level November 5, 2010 GLOBAL stock markets surged yesterday to their highest level since the collapse of Lehman Brothers over two years ago, in reaction to the Federal Reserve’s decision to try and hasten the pace of the recovery by pumping $600bn (£372.69bn) of fresh funds into the US economy. The FTSE 100 index of leading shares closed up 113.82 [...]