Wall Street falls as investors lose faith October 27, 2010 US stocks fell yesterday as investors dialed back expectations of how aggressively the Fed would act to stimulate the economy. With the uncertain outcomes of the US elections and a Fed meeting next week, traders positioned themselves for more volatile markets. The CBOE Volatility index rose 2.4 per cent and was up for the third [...]
PIMCO’S GROSS ISSUES WARNING OVER A BRAZEN PONZI SCHEME: QE October 27, 2010 PIMCO’S resident bond expert Bill Gross yesterday, in his usual verbose fashion, issued a stark warning over the upcoming second round of quantitative easing (QE) in the US – dubbing it no less than a “Ponzi scheme” on the part of the Federal Reserve. “Check [sic] writing in the trillions is not a bondholder’s friend; [...]
THE TIPSTER October 27, 2010 THE Bank of Japan (BoJ) is expected to make its interest rate decision tomorrow and investors will be looking for signs of further intervention to weaken the yen. Recently the dollar-yen looks like it has reached an area of support around the 15-year low of ¥80.00. Considering that the market is speculating that there will [...]
WHAT THE OTHER PAPERS SAY THIS MORNING October 26, 2010 FINANCIAL TIMES CHINA AND US CLOSER ON TRADE TARGETS China and the US have the basis for an agreement at the summit of the Group of 20 leading nations next month on setting targets to cut trade imbalances, according to an adviser to the Chinese central bank. Li Daokui, a member of the central bank’s [...]
THE TIPSTER October 26, 2010 THE Australian dollar-US dollar is still tentatively trading below parity. As one of the few advanced economies to avoid a recession, the Australian economy should benefit from high demand for raw materials, especially from China. Bulls expect the Aussie to break through to parity soon, so it may be a trade for the optimistic. Capital [...]
Dudley: Fed has no “magic wand” October 26, 2010 The US Federal Reserve cannot “wave a magic wand” to fix the economy overnight, but it can provide “essential” support, a top Fed policymaker. Indeed, support will likely be warranted unless economic conditions improve, William Dudley, president of the New York Fed and a permanent voter on the Fed’s policy-setting panel, said in a speech [...]
Fed-up Fabregas bans talk of title challenge after City win October 25, 2010 ARSENAL captain Cesc Fabregas has poured scorn on endless assessments of the Gunners’ chances of winning a first Premier League title since 2004. The north Londoners delivered a powerful statement of intent with a 3-0 win at Manchester City on Sunday, ending a run of defeats against fellow title hopefuls. The victory propelled Arsenal into [...]
US foreclosures set for probe as Bernanke admits concern October 25, 2010 FEDERAL Reserve Bank chairman, Ben Bernanke, said yesterday the initial findings of an investigation by US regulators into home foreclosures would be published in November. Bernanke said federal banking agencies were conducting an “in-depth” review of practices at the largest US mortgage lenders as he addressed a joint conference of the Fed and the Federal [...]
Falling dollar lifts shares throughout Wall Street October 25, 2010 US stocks rose to a five-and-a-half month high yesterday as a falling dollar, partly driven by expectations of further stimulus by the Federal Reserve, prompted investors to buy riskier assets. The Dow Jones industrial average gained 31.49 points, or 0.28 per cent, to 11,164.05. The Standard & Poor’s 500 Index added 2.54 points, or 0.21 [...]
FED NEEDS TO END THIS QE UNCERTAINTY October 25, 2010 CFD MARKET STRATEGIST, GFT The G20 meeting of finance ministers and central bankers passed without incident, leading to a big sell-off in the US dollar yesterday, and a corresponding rally in everything else. There had been concern that member states would struggle to not criticise each other, escalating currency and trade tensions. The final communiqué [...]