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Sep 19, 2013

Fed delay both delights, confounds investors

NEW YORK (Reuters) – Wall Street’s knee-jerk reaction to the Federal Reserve choosing to keep the pedal to the monetary policy metal was loud and clear on Wednesday: Buy Buy Buy!

That initial exuberance, however, masks a nagging worry and no shortage of confusion about the Fed’s reluctance to act after the central bank had positioned markets for a reduction in its $85 billion per month bond buying program. It left many investors in a fog about what comes next.

Sep 18, 2013

Analysis: Fed delay both delights, confounds investors

NEW YORK (Reuters) – Wall Street’s knee-jerk reaction to the Federal Reserve choosing to keep the pedal to the monetary policy metal was loud and clear on Wednesday: Buy Buy Buy!

That initial exuberance, however, masks a nagging worry and no shortage of confusion about the Fed’s reluctance to act after the central bank had positioned markets for a reduction in its $85 billion per month bond buying program. It left many investors in a fog about what comes next.

Sep 17, 2013

Foreigners buy U.S. bonds in July after June selloff

NEW YORK, Sept 17 (Reuters) – Foreign investors rediscovered
a taste for long-term U.S. securities in July as Japan and China
increased holdings of U.S. government bonds, which had suffered
a record outflow in June.

According to U.S. Treasury data released on Tuesday, foreign
holdings of long-term U.S. securities increased by $31.1 billion
in July after plunging by $67 billion the prior month.

Sep 11, 2013

Emerging-market investors get picky with Fed set to taper

NEW YORK (Reuters) – Investors bracing for the U.S. Federal Reserve to wind down its monetary stimulus have fled emerging markets in recent months, and while the impact of slow capital flows is likely to be felt for some time, some countries will fare much better than others.

The U.S. central bank is expected to begin trimming its massive $85 billion bond-buying program as early as next week. That will mean fewer Fed-created dollars sloshing around the global financial system.

Sep 11, 2013

Analysis: Emerging-market investors get picky with Fed set to taper

NEW YORK (Reuters) – Investors bracing for the U.S. Federal Reserve to wind down its monetary stimulus have fled emerging markets in recent months, and while the impact of slow capital flows is likely to be felt for some time, some countries will fare much better than others.

The U.S. central bank is expected to begin trimming its massive $85 billion bond-buying program as early as next week. That will mean fewer Fed-created dollars sloshing around the global financial system.

Aug 27, 2013

U.S. home prices rise but at slower pace, consumers optimistic

NEW YORK, Aug 27 (Reuters) – U.S. home prices rose in June,
extending a multi-month rebound, though the pace of gains
cooled, suggesting higher mortgage rates may end up slowing
momentum as the year winds down.

Separate data released on Tuesday showed consumer confidence
rebounded in August. Consumers were more optimistic about the
future even though their assessment of their current standing
fell.

Aug 22, 2013

In U.S., China, Europe, data points to global rebound

NEW YORK/LONDON (Reuters) – Business surveys on Thursday suggested the world economy was on the mend, with U.S. and Chinese manufacturing activity at multi-month highs and better-than-expected growth in the euro zone.

The data should bolster the case for the Federal Reserve to start withdrawing support for the U.S. economy this year – possibly as soon as next month – and enhance the appeal for investors of developed economies in North America and Europe.

Aug 21, 2013

Few clues on timing of QE3 reduction in Fed minutes

NEW YORK (Reuters) – A few Federal Reserve officials thought last month it would soon be time to slow the pace of their bond buying “somewhat” but others counseled patience, according to meeting minutes that offered little hint on when the U.S. central bank might reduce its purchases.

The minutes of the Fed’s July 30-31 meeting, released on Wednesday, showed that almost all of the 12 members of the policy-making Federal Open Market Committee agreed changing the stimulus was not yet appropriate.

Aug 19, 2013

U.S. bond yields hit 2-year high; emerging currencies slide

NEW YORK (Reuters) – U.S. benchmark bond yields hit a two-year high on Monday and emerging market currencies from India to Indonesia tumbled as markets braced for the Federal Reserve to start withdrawing support for the U.S. economy.

U.S. stocks were mixed while political uncertainty in Italy hurt Italian bank shares, dragging down the broader European market. Fear that the Fed will scale back stimulus spending next month battered Wall Street last week, with the Dow industrials putting in their worst weekly run of the year.

Aug 19, 2013

U.S. bond yields hit two-year high, emerging currencies slump

NEW YORK (Reuters) – U.S. bond yields hit a two-year high on Monday and emerging market currencies from India to Indonesia tumbled as markets braced for the Federal Reserve to start withdrawing support for the U.S. economy.

U.S. stocks were mixed as trading began but then edge higher, while European shares slipped. Fear that the Fed will scale back stimulus spending next month battered Wall Street last week, with the Dow industrials putting in their worst weekly run of the year.