If You Want A Strong Economy Cut The Short Term Capital Gains Rate
The markets are hovering on the flat line ahead of the 12:30pm ET release of the FOMC rate decision. Obviously, rates are not going anywhere at this time so it is more a matter of the comments released by Federal Reserve Chairmen Ben Bernanke. This will happen at 2:15pm ET today during a first ever press conference.
Interest Rates Driving Euro and British Pound Higher
The surprise this week in the Forex markets is the inability of the U.S. Dollar to attract fresh investors given the escalating problems in the Middle East and North Africa. With crude oil and gold rising as traders take protection, many traders thought the Greenback would benefit from flight-to-safety buying.
China Rates Hikes could Take Down Australian Dollar
The Australian Dollar is under pressure overnight following a rate hike by China’s central bank. The 25 basis point rise to 3 percent is the second attempt in just over a month to fight against inflation. The interest rate increase is an attempt to slow down the world’s number 2 economy.
Stock Market Video - Markets Drop On Gold, Then Recover On Fed
This weekend the Chinese central bank called the 'Peoples Bank of China' raised interest rates by 25 basis points. This move by the central bank was expected weeks ago as the consumer price index was indicating high inflation for the Chinese economy. The Chinese economy has been known to be the growth engine of the world.
Low Interest Rates; Global Recovery Fears Driving T-Bonds Higher
Flight-to-safety buying is driving June Treasury Bonds sharply higher. Thursday trading action took out the recent high at 124’16. Upside momentum seemed to be indicating that another surge was likely. The move in the T-Bonds looks more reactionary than speculative with investors taking their cues from the falling equity markets.