There has been much disappointment over European Central Bank President Mario Draghi’s apparent failure to initiate another round of bond purchases from the secondary markets to bring down Spanish and Italian 10-year yields. While Draghi signaled the central bank intends to buy sovereign bonds to bring down borrowing costs, he conceded that differences with the German Bundesbank remain over the …
Draghi Drags Down Major Indexes—Confirms He Is ‘All Hat And No Cattle;’ KWT Rallies, UNG Slips
[Chart courtesy of MarketWatch.com] US major indexes extended their losing streak for the fourth straight day Thursday after the European Central Bank failed to deliver on its earlier pledge to halt a further decline of the ongoing sovereign debt crisis. ECB president Draghi, who last week single handedly ignited a rally in equities with talk of upcoming bazooka like actions, …
Fed Disappoints—US Stocks End Marginally Lower; ECB And Unemployment Numbers On Deck; USO Rises, URA Sinks
[Chart courtesy of MarketWatch.com] US stocks ended marginally lower Wednesday as the Federal Reserve decided to hold back another round of asset purchases to boost the economy. Traders had priced in a Fed move to support the market’s lofty levels even though eight of ten economists surveyed by Bloomberg News were negative on the Federal Reserve initiating further quantitative easing …
Market Indexes Slip On Uncertainty; Will The Fed/ECB Deliver?
[Chart courtesy of MarketWatch.com] Uncertainty and a certain amount of nervousness among traders provided the background for the day, as the major indexes all slid into the end of the month. There was not much propping up going on as today proved to be a repeat of yesterday’s theme with the indexes hovering slightly above and below the unchanged line. …
US Equities Stall After Two-Day Rally; UNG Bursts, KWT Fades
[Chart courtesy of MarketWatch.com] US equities remained just about flat with a slight negative bias today, snapping a two-day winning streak as investors chose to hold back ahead of the central bank meetings and monthly jobs report later this week. The Dow Jones Industrial Average (DJIA) lost 3 points, with the index’s heaviest component JP Morgan Chase (JPM) leading the …
Will The US Q2 GDP Number Trigger Another Round Of Quantitative Easing?
Friday’s GDP growth number may not be the best, but it’s still much better than the European nations, particularly when compared to the horrible UK number that we saw this week, says Peter Dixon, global equities economist at Commerzbank AG in London. The economy clearly shows a downside risk since growth momentum slowed down to 1.5 percent in Q2 from …