Richard's Thoughts on the Fed
News items today include an increase in US jobless claims to 285,000, still considered fairly healthy, a significant drop in US productivity levels, and a decline in US manufactured goods. But investors were mostly focused elsewhere, primarily (can you guess?) on interest rates, oil prices, and now a big drop in the US dollar.
A Fed spokesman added to the growing sense that interest rates won't see another hike in the foreseeable future. This helped send the dollar below strong support in the 97-98 area, setting up a run at the 94 handle next.
Asian stock markets finished mostly higher (Japan's being the exception), based on higher oil prices. But then oil turned south; that, along with a soaring euro, kept European markets on the defensive and they finished down on the day. Except for mining shares, which leaped further due to big gains overnight in the underlying metals.
Like yesterday, US equity ... Log in or subscribe to continue reading.
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