wordpress seo

Dollar Rises In Subdued Trade

Posted by Sara | Opinion | Friday 10 January 2014 12:27 am

On January 3, the United States dollar rose broadly after being buoyed by comments made by outgoing Federal Reserve Chairman Ben Bernanke. The dollar was also buoyed by risk aversion but a major snowstorm blanketing the Northeast of the United States kept trade thin.

Dollar Rises In Subdued Trade

The governors of New York and New Jersey declared states of emergency after heavy snowstorm and dangerously cold conditions gripped the northeastern United States, delaying flights, paralyzing road travel, and closing schools and government offices across the region.

“You have a holiday week, which is always going to be pretty light on volume and with most of the Northeast digging itself out of the snowstorm, that has made activity especially light, even for a holiday week,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington, D.C.

The US dollar fell as low as 104.05 yen, but later erased losses to last trade flat at 104.74 yen to remain below a high of five years of 105.44 yen set on Thursday.

Bernanke, who steps down as head of the U.S. central bank at month’s end, gave an upbeat assessment of the economy of the United States in coming quarters but repeated that the overall recovery “clearly remains incomplete” in the United States.

The top-performing major currency of 2013, the euro, shed 0.6 percent to 142.38 yen.

“The rebound in the yen is carryover from yesterday’s sell-off in equities and we also saw U.S. bond yields pull back from the higher end of their ranges,” Commonwealth’s Esiner said. “Both of those factors provided investors an excuse to book some profit on the yen’s decline.”

“With U.S. 10-year Treasury yields back at three percent, we have already seen the yen pare some of its overnight gains and it is trading well off its overnight highs,” he said.

Tags: , , ,

Bernanke Repeats Vow To Shield US

Posted by Sara | Opinion | Tuesday 14 February 2012 4:32 am

Bernanke Repeats Vow To Shield US

On Tuesday, Federal Reserve Chairman Ben Bernanke renewed a pledge to prevent financial crisis of Europe from damaging the U.S. economy in testimony before Congress that mirrored remarks he made last week.

“We are in frequent contact with European authorities, and we will continue to monitor the situation closely and take every available step to protect the U.S. financial system and the economy,” Bernanke said in remarks prepared for delivery to the Senate Budget Committee.

Bernanke maintained a cautious tone on the U.S. outlook.

“We still have a long way to go before the labor market can be said to be operating normally,” he said.

Tags: , , ,

Wall Street On Edge Over Greece

Posted by Sara | Opinion | Wednesday 2 November 2011 8:49 pm

On Wednesday, stocks rebounded from two days of sharp losses after the Federal Reserve said it is prepared to do more for the economy if conditions warrant, helping to stanch the panicky reaction to Europe’s debt crisis.

Wall Street On Edge Over Greece

Investors sold heavily this week after Greece communicating it would be holding a referendum on an EU bailout crucial to stabilizing the euro zone‘s financial system.

From news.yahoo.com:

Federal Reserve Chairman Ben Bernanke said the central bank was closely monitoring developments in Europe and left open the possibility that the Fed could expand its holdings of mortgage debt if U.S. economic conditions worsened.

“Bernanke was clear that they were prepared to do more, that they have the tools to do more,” said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York. “We remain in a very volatile situation.”

The Dow Jones industrial average rose 178.08 points, or 1.53 percent, at 11,836.04. The Standard & Poor’s 500 Index gained 19.62 points, or 1.61 percent, at 1,237.90. The Nasdaq Composite Index added 33.02 points, or 1.27 percent, at 2,639.98.

Tags: , , , , ,

Wall Street Snaps Winning Streak

Posted by Sara | Opinion | Wednesday 5 October 2011 12:07 am

Wall Street Snaps Winning StreakStocks fell on Monday but staged a late comeback after concerns of a looming Greek debt default diminished on news of a possible deal to advance new bailout funds to Greece.

A Greek finance ministry official said after talks with the European Union and International Monetary Fund that the country was near an agreement to continue receiving money from international lenders.

From Reuters.com:

International lenders told Greece on Monday it must shrink its public sector and improve tax collection to avoid default within weeks as investors, unnerved by political setbacks in Europe dumped risky euro zone assets.

The Federal Reserve will begin a two-day meeting on Tuesday and is poised to increase downward pressure on longer-term interest rates this week in a bid to accelerate a sputtering U.S. recovery.

“It’s the Greece thing and the Fed meeting this week. We’ve seen a lot of write-up on this Operation Twist, a lot of it may be baked in,” said Terry Morris, senior equity manager for National Penn Investors Trust Company in Reading, Pennsylvania.

The Dow Jones industrial average .DJI dropped 108.08 points, or 0.94 percent, to 11,401.01. The Standard & Poor’s 500 Index .SPX lost 11.92 points, or 0.98 percent, to 1,204.09. The Nasdaq Composite Index .IXIC edged down 9.48 points, or 0.36 percent, to 2,612.83.

Tags: , , , ,

Exchange of fire between Koreas led to tumbling of US stocks

Posted by Sara | Opinion | Friday 26 November 2010 3:08 am

Exchange of fire between Koreas led to tumbling of US stocksAn exchange of fire on the Korean Peninsula and fresh concerns that the debt crisis of eurozone could spread led to a sharp fall for the US stocks.

Artillery shells were fired by North Korea at a South Korean island near their disputed western sea border. South Korea retaliated by firing for about one hour and both Koreas warned of massive retaliation if there were further attack.

From in.news.yahoo.com:

German Chancellor Angela Merkel meanwhile warned that the euro was increasingly under after the Irish government was forced to accept a bailout. Investors fear Portugal and Spain could be next.

In the US, the Federal Reserve sharply cut its forecast for economic growth and employment in the coming years.

The blue-chip Dow Jones Industrial Average fell 142.21 points, or 1.27 percent, to 11,180.73. The broader Standard and Poor’s 500 index plunged 17.11 points, or 1.47 percent, to 1,180.73. The technology-heavy Nasdaq Composite Index tumbled 37.07 points, or 1.46 percent, to 2,494.95.

The US currency rose against the euro to 74.81 euro cents from 73.41 euro cents Monday. The dollar fell against the Japanese currency to 83.16 yen from 83.27 yen.

The exchange of fire between the Koreas also led to dramatic fall in stock prices across the world.

Tags: , , , , , , ,