FTSE down as mining shares fall October 12, 2010 Britain’s leading share index edged lower yesterday with weakness in commodity issues countering strength in defensive issues as investors’ risk appetite faded. At the close, the FTSE 100 index was down 10.81points, or 0.2 per cent, at 5,661.59, having earlier touched its lowest level in a week below the 5,600 level. Miners Xstrata, Kazakhmys, and [...]
US stocks leap after Fed minutes October 12, 2010 US stocks hit fresh five-month highs yesterday as details from the Federal Reserve’s latest meeting showed the US central bank may once again flood markets with cheap cash “before long” to further boost growth. The minutes from the Fed’s 21 September meeting served as another strong signal for a stock market that has surged for [...]
Looming currency war threatens world trade October 12, 2010 AFTER the crash in 1929, nations retreated inside protectionist walls. In 2009, they managed to refrain from the same action – but they may yet succumb to another ’30s blight on world trade: currency wars. A currency war consists of states pursuing competitive devaluations in an attempt to increase the attractiveness of one’s exports. But [...]
DOLLAR DROP COULD WELL BE OVERDONE October 12, 2010 OVER the past month euro-dollar has been in a near-vertical uptrend, rising more than 1,000 points in just 22 trading days. But now that the pair has reached the psychologically important 1.4000 level, it may be due for a pause as positioning becomes grossly overstretched. The reasons for dollar weakness are well known. The Fed’s [...]
Fed hints at more QE in near future October 12, 2010 AMERICA’S Federal Reserve is considering a new round of quantitative easing (QE) “before long”, according to the minutes of the panel’s most recent meeting, released yesterday. The minutes said “many” Fed officials thought a second round of monetary easing might be needed to kickstart America’s flagging recovery, in the strongest signal yet that they are [...]
Further Fed easing is likely October 12, 2010 THE MINUTES of the Federal Reserve’s latest meeting released yesterday showed growing tension between members, as the panel edged towards further quantitative easing to help rouse the American economy. The panel of banking governors took more than five hours to reach an agreement on 21 September – around twice as long as meetings earlier in [...]
Don’t rejoice too soon about US QE2 October 12, 2010 IT now looks as if the US will embark on another round of quantitative easing (QE), sooner rather than later. Last night’s minutes could hardly have been any clearer. While an important minority of Fed decision-makers remains opposed, or (sensibly) wants to wait for additional information, “many participants” think that unless growth accelerates, unemployment fall [...]
BARCAP VICE-CHAIR TO BACK CITY WOMEN IN PLURAL DIRECTOR ROLE October 12, 2010 BARCLAYS Capital vice-chairman Gay Huey Evans has long been a trailblazer for women in the Square Mile, but she’ll be even more influential in her advocacy for greater female participation at the top echelons of the City in her new role as a “plural” board director. Huey Evans left BarCap yesterday after a long and [...]
Fed vice chair warns of bubbles October 11, 2010 Low interest rates can contribute to financial bubbles even if they are not a primary culprit, Janet Yellen said in her first speech as vice chair of the US Federal Reserve. At a time of growing concern about the international repercussions of another possible round of monetary easing by the US central bank, Yellen’s comments [...]
A SECOND QE WILL COST THE FED DEAR October 11, 2010 CFD MARKET STRATEGIST, GFT The next Federal Open Market Committee (FOMC) meeting is a month away. Judging from the dollar, investors expect further stimulus from the US Federal Reserve. Equities began their current rally following the Fed Chairman’s speech at the end of August. Then, Ben Bernanke stated that the FOMC was ready to step [...]