(AN HOUR LATER THE MARKETS WILL BE HUNGRY FOR MORE RUMORS)
Another day and another round of rumors. As the financial markets awaited the EU LEADERS’ statement, the rumor of China agreeing to buy European SOVEREIGN DEBT and EFSF paper provided a boost to a falling EURO and a BID TO the U.S. EQUITY MARKETS. It seems that the market wants to BELIEVE that the Chinese are going to ride to the rescue of the EU and provide the backstop that the Germans are so reticent to bankroll.
Tags:Bernanke, BOC, CDS, China, ECB, EFSF, equity markets, EU, Euro, FOMC, G-20, Geithner, IMF, Lagarde, Loonie, Mark Carney, OTC, RBNZ, sovereigns, Tarullo, Yellen
Posted in China, Europe, IMF | 2 Comments »
DON’T SPEAK TOO SOON
FOR THE WHEEL’S STILL IN SPIN
AND THERE’S NO TELLIN’ WHO
THAT ITS NAMIN’
FOR THE LOSER NOW
WILL BE LATER TO WIN
FOR THE TIMES THEY,
THEY ARE A-CHANGIN’
The markets have greeted Sunday’s purported U.S. budget deal with a great sigh of relief as the S&P futures have opened 1.5% higher. At this moment it is difficult to determine what exactly has been agreed. It seems that Boehner was able to placate the “TEA PARTY” caucus for the moment–enough to get some compromise.
Tags:Aussie, Boehner, budget deal, debt ceiling, EFSF, ESM, Euro, European debt, GDP, Gold, Kiwi, Obama, OTC, PIIGS, Real, Schaeuble, Singapore dollar, SNB, swissie, Tea Party, U.S.
Posted in Currency, Europe, United States | Leave a Comment »
Let us hope that the FED and Chairman Bernanke are not following Shakespeare’s most famous stage direction. Today, the FOMC released the minutes from the last meeting and as widely expected the predominant interest was in the discussion of the FED‘s exit strategies from the QE2 program. It seems that FED BOARD members were pushing the idea of raising rates prior to the unloading of assets that have accumulated on the FED‘s balance sheet. There were many opinions about the significance of the various proposals that the FED is considering, but it seems that the FED itself is very uncertain about which procedure will produce what impact.
Tags:Aussie, Commodities, Dodd-Frank, Dollar, energy, Equities, Fed, FOMC, Gold, grains, inflation, OTC, QE2, regulated exchanges, sugar, Swiss Franc, transitory
Posted in Commodities, Federal Reserve, FOMC | 2 Comments »