ECB should stay silent about monetary policy October 17, 2010 JEAN Claude Trichet and his colleagues at the ECB are playing a dangerous game. Despite the Eurozone’s recovery still looking fragile, the central bank’s key playmakers seem determined to talk about pushing policy back onto a more “normal” footing. Just last week, the Bundesbank’s Axel Weber, in a speech given in New York, indicated his [...]
Positive start forecast as rosy US results expected October 17, 2010 BLUE chips are set for gains on the open this morning, as investors are expected to focus on the prospect of some healthy numbers from the US by way of the third-quarter earnings season. GFT is quoting the FTSE 100 index to open up 22 points from Friday’s close, at a level of 5,725. The [...]
The Fed’s new wave of easing could help the Vix rise higher October 17, 2010 SHARP drop-offs in the volatility or “fear” index of the S&P 500 sparked a flurry of commentary last week as the indicator fell 11.5 per cent over one week to hit a six month low. The index (known as the Vix) is calculated by the Chicago Board Options Exchange using data from a range of [...]
Miners and hopes of more easing in US push London to a five month high October 13, 2010 Strong miners helped drive Britain’s top share index to a more than five-month closing high yesterday, boosted by firmer metals prices and hopes for fresh economic stimulus in the United States. The FTSE 100 index ended up 85.76 points, or 1.5 per cent, at 5,747.35, its highest closing level since April 26, and its biggest [...]
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 [...]