QE3 Is Broken

Published by Filipe R. Costa on Mon, 24/09/2012 - 11:10
qe3 dose

Daily Market Commentary for September 24: Uncertainty continues to dominate the market as investors can’t decide wether they should back equities or stay on the sidelines. Investors are waiting for something coming from Spain but are concerned with economic data.

Equities are edging lower following a poor Asian session. At the time of writing the FTSE 100 is trading around 5,815 down from 5,852. Gold that was trading as high as 1,787 over the last session is now trading at 1,757. The pair EUR/USD is back to 1.2900. It seems that not even QE3 can make investors’ minds at a time there are major weaknesses across the globe. After more than one month of central bank-led markets it is time to return to the real economy and look at economic data. Europe will need to do more to convince investors. Austerity is not giving good results at all and the ECB steps are insufficient.

For now we are seeing a weak session but as we have been assisting in the recent past, when US markets open, things change. QE3 will be enough for now to assure markets won’t go down by much.

Name Last price Close Price % 5-Day % YTD %
DAX (Xetra) 21/09/2012 7451.62 0.84 0.53 26.33
Nasdaq 100 Index 21/09/2012 2861.64 0 0.22 25.63
S&P 500 21/09/2012 1460.15 -0.01 -0.38 16.11
Gold (LBM) $ 21/09/2012 177340 0.61 -0.06 13.18
CAC 40 21/09/2012 3530.72 0.59 -1.42 11.74
Dow Jones Industrial Average 21/09/2012 13579.5 -0.13 -0.1 11.15
Nikkei 225 21/09/2012 9110 0.25 -0.54 7.74
FTSE MIB 21/09/2012 15991 1.02 -3.81 5.97
FTSE 100 21/09/2012 5852.62 -0.03 -1.06 5.03
GBP/USD - US $ per £ 21/09/2012 1.623 0.05 0.07 4.51
EUR/USD - US$ per Euro 21/09/2012 1.2981 0.05 -1.13 0.21
IBEX 35 21/09/2012 8230.7 2.6 0.93 -3.92
EUR/GBP - £ per Euro 21/09/2012 0.7998   -1.21 -4.01
Crude oil (Light Sweet) Composite 21/09/2012 9306 0.27 -6.04 -6