ECONOMIST VIEWS: WILL THE MPC MOVE TO INCREASE QE THIS WEEK? October 31, 2010 SIMON HAYES | BARCLAYS CAPITAL “In the context of a policy stance that is already exceptionally loose… a further loosening would seem odd. I expect no change in policy… and continue to believe a three-way split is likely to persist for several months to come.” PETER DIXON | COMMERZBANK “The chances of a near-term expansion [...]
Sideways trading forecast ahead of expected QE2 October 31, 2010 THE call this morning is for stock markets to open unchanged, with markets likely to trade in a narrow band as caution prevails ahead of a potentially monumental week for economic events. GFT is quoting the FTSE 100 index to open unchanged from Friday’s close, at a level of 5,675. The German DAX 40 is [...]
WALL STREET WEEK AHEAD October 31, 2010 THE wait is almost over. After a two-month rally in the stock market, some investors are about to see if they get what they wished for: more Republicans in Congress and lots of cheap money. The US stock market has priced in the Republicans gaining ground in tomorrow’s midterm elections, an outcome widely seen as [...]
SPREAD BET GURU October 31, 2010 MARKET STRATEGIST josh@cityindex.com Q. Dear Josh, what is the market expecting from the Fed this week? A. The market is expecting the Federal Reserve to announce a second round of quantitative easing (QE2), designed to bolster the US economic recovery. Indeed, many of the recent gains in equity markets have been caused by this belief [...]
US economy in slim GDP rise October 29, 2010 US economic growth edged up as expected in the third quarter but not enough to chip away at high unemployment or change perceptions of more monetary easing from the Federal Reserve next week. Gross domestic product expanded at a two per cent annual rate as consumer spending rose at its fastest pace since 2006, the [...]
Advances from BG Group and Shell help lift the FTSE 100 October 28, 2010 BRITAIN’S top share index pushed higher yesterday, helped by a rally in heavyweight commodity issues, notably oil major Royal Dutch Shell, whose third-quarter results beat market expectations. The FTSE 100 ended up 31.87 points, or 0.6 per cent, at 5,677.89, recovering after it reached its lowest closing level since 5 October on Wednesday. Energy issues [...]
Wall Street falls as elections approach October 28, 2010 US stocks edged lower yesterday as investors took to the sidelines ahead of expected upheaval from next week’s elections and likely additional stimulus by the Federal Reserve. Next week’s events could signal shifts in both monetary policy and legislative direction, leading investors to be cautious and largely disregard yesterday’s corporate earnings and economic reports. A [...]
US jobless total falls to three-month low October 28, 2010 THE US jobless total fell to a three-month low official figures revealed yesterday. Initial unemployment claims fell by 21,000 to 434,000 in the week ended 23 October the US Labour Department said in its weekly report yesterday. The previous week’s figures were revised up from 452,000 to 455,000. The claim figure is the lowest since [...]
QE2 strong option says BOJ chief October 28, 2010 THE Bank of Japan (B0J) said yesterday boosting its five trillion yen (£38bn) asset buying plan was a “strong option” if the economy deteriorated. The BOJ’s governor Masaaki Shirakawa made the admission as he said he was bringing forward its next policy review to 4-5 November right after the US Federal Reserve meets, which markets [...]
FTSE hit by fears UK recovery will stall without fresh stimulus October 27, 2010 BRITAIN’S top shares posted their biggest one-day losses in over two months yesterday, hit by market concerns that further quantitative easing measures in the US might be less aggressive than expected. The FTSE 100 was down 61.28 points, or 1.1 per cent, at 5,646.02, its lowest closing level since 5 October, adding to the 0.8 [...]