What a magnificent display from the three benchmark US indices, closing at the highest levels of the day. From Tuesday low of 10,938 thereabouts, Dow breached through 11,400 and closed at 11,414.86. Dow registered a gain of 2.47%. Similarly, the S&P and Nasdaq closed at 1,198.62 and 2,548.94 registering a 2.86% and 3.04% respectively.
Dow registered a high of 11,613 on Aug 31st 2011 before plummeting to a low on Tuesday night. As mentioned in my post Aug 9th FOMC unfolded dated Aug 30th, I speculated that the Europe debt situation will be checking on the hopes and speculation of a Fed stimulus. Europe closed at a 2 year low on Tuesday wreaking havoc through global indices.
From a point near to capitulation early this week, what contributed to a turn of havoc in global markets on Wednesday were
· A ruling by Germany’s top court allowing the country to participate in regional rescue plans
· Italian Senate approval of her austerity plans
easing fears about Europe.
· On the other side of the Atlantic, there’s President Obama plans to bolster employment by injecting more than US 300 billion into the economy next year. Listen to his address tonight to a joint session of Congress.
· Canada held her interest rate unchanged.
In Asia, the MPM of Australia and Japan held their benchmark interest rate unchanged. The favorable GDP data from Australia which exceed expectation lifted the Asian market on Wednesday.
Till the weekend, tune in to Obama’s address tonight while on Friday, we’re awaiting the China inflation data.
I’ll be watching closely on Asia Pacific performance this morning especially Indonesia, Taiwan, Korea and Singapore.
As this post may be broadcast/delayed/posted at a later time because it has to go for moderation, you have my permission to broadcast, email, twitter, facebook to any or all of your friends to assist them to potentially enhance their portfolio.
The only blog that had made brave speculation of
a market meltdown since May 2011
And a Buy call in mid August 2011!
Reference: Market trend PRE Jackson Hole
0 comments:
Post a Comment