Bullard Scared Investors

Published by Filipe R. Costa on Fri, 24/08/2012 - 11:32
scared

Daily Market Commentary for August 24: Everything seemed fine with investors depositing all hopes on FED’s intervention, but Bullard had to come and erase all this, stating monetary easing may not be scheduled soon.

Investor’s were scared yesterday and sold equities after FED’s Bullard stated that the current state of the US economy may not push the FED to engage in additional monetary easing, at least at next FED meeting in September. According to his comments, the language used in FED Minutes is purposefully vague to keep all options open in terms of what and when.

New home sales in the US rose to an annual pace of 372k, a number that came above expectations and an improvement of 3.6% over last report. At a time the sector is struggling to grow, this is really good news.

Initial jobless claims rose slightly to 372k, a little above the expected 365k and also above last reported value at 368k.

Markets are in downtrend after Bullard’s words yesterday but concerns are also mounting around Chinese data that may have been distorted by the Chinese authorities hiding a cruel reality behind. Oh, there is also more on the same regarding EU. Investors are waiting for any announcement coming from meetings between Samaras and Holland and Samaras and Merkel. An extension to Greece is likely to be given.

Name Last price Close Price % 5-Day % YTD %
Silver (LBM) $ 23/08/2012 30.71 4.14 8.94 9.84
Gold (LBM) $ 23/08/2012 1674.3 2.02 3.61 6.85
Nikkei 225 23/08/2012 9178 0.51 0.94 8.55
EUR/GBP - £ per Euro 23/08/2012 0.7921 0.38 0.87 -4.93
EUR/USD - US$ per Euro 23/08/2012 1.2559 0.2 1.62 -3.05
USD/JPY - JPY per US$ 23/08/2012 78.59 0.05 -0.87 2.21
FTSE 100 23/08/2012 5776.6 0.04 -0.99 3.67
GBP/USD - US $ per £ 23/08/2012 1.5858 -0.16 0.77 2.11
Nasdaq 100 Index 23/08/2012 2762.02 -0.77 -0.22 21.26
IBEX 35 23/08/2012 7282.9 -0.79 -1.81 -14.98
S&P 500 23/08/2012 1402.08 -0.81 -0.95 11.49
CAC 40 23/08/2012 3432.56 -0.84 -1.38 8.63
Dow Jones Industrial Average 23/08/2012 13057.5 -0.87 -1.45 6.87
DAX (Xetra) 23/08/2012 6949.57 -0.97 -0.67 17.82
FTSE MIB 23/08/2012 14953.75 -1.37 0.16 -0.9
Crude oil (Light Sweet) Composite 23/08/2012 95.87 -1.52 0.64 -3.16