The rally monekys are out in force today, after that long weekend, and that even longer, and painful, sell-off last week. Assets across a variety of classes and regions are rising. But is it for real, or just a big dead-cat bounce? We break it down for you on the Markets Hub.
Dow Jones Industrials, Economic Indicators, Economy, Markets, S&P 500 / Comments Off
Car talk (not the NPR show, by the way,) another Grecian burn and the commodities guys, Canada and Australia, are sitting pretty. That’s what we’re on about today on Tomorrow’s News Today.
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US stocks rise sharply after the Australian central bank surprises everybody with the first interest rate hike from a major economy, which puts pressure on the US dollar and boost gold to a record close.
DJIA jumps 131 (1.4%) to 9731, S&P 500 gains 14 (1.4%) to 1055, Nasdaq Comp rises 35 (1.7%) to 2104. Stocks, crude, gold all gain; dollar, Treasurys slip.
Stocks jumped sharply out of the gate, and for the most part cruised except for that odd mid-afternoon sag. We didn’t hear anything good to explain it, and it went away soon enough anyhow.
It was the biggest one day jump for the Dow since Aug. 21. And combined with yesterday’s gains, the Dow has jumped 2.6% in two days, the biggest such move since July 16.
You don’t want to skip this one. We tie together Australia’s interest-rate hike, the Fed’s likely response, the slack in the economy, retail sales and the images of planes parked in the desert and empty cargo ships anchored in a bay in Singapore.
It’s Tomorrow’s News Today.
Banks, Dow Jones Industrials, Earnings, Economic Indicators, Economy, Markets, Recession, S&P 500 / Comments Off
The weak-dollar trade’s flourishing this morning after Australia’s central bank hikes interest rates, from 3% to 3.25%. Commodities and overseas stock markets all spiking higher ahead of the US market open.
Nothing notable on the economic data calendar today. Treasury auctions $39B in three-year notes at 1:00 p.m.
S&P futures up 8.40; DJ futures up 61. Ten-year flat, yield at 3.22%.
While monetary easing was largely well-coordinated around the globe as the financial crisis developed, Australia’s move suggests the tightening process may be more disjointed. Doesn’t help the Fed which already needs to thread the needle in terms of timing its tighter stance. Now the needle may’ve just started to shake.
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Madeleine and I break down GM’s second thoughts about selling Opel, Barrick Gold’s costly hedges, and the downside of fiscal stimulus, from the land Down Under.