The ECB Talks Negative Interest Rates: Why You Should Be Scared
Today, the European Central Bank broke out the negative interest rate talk. This means the days of banks paying YOU to keep YOUR money are coming to a close. Instead, be ready to start paying the bank to hold your money. Scary thought. Regardless of who is paying whom, the bigger issue is what this says about the European economy. ...
The 10-Year U.S Treasury Yield Pulls Back, But How Far Will It Fall?
The average investor has no idea why interest rates matter so much to the stock market. Most think it only comes into play in regards to the rate at which home buyers can get mortgages. While that is extremely important and a major economic player, it has little to do with the overall stock market on a day to day basis. ...
Forget The Bernank, Day Traders Follow The Technicals
As you all know, every trader and investor in the world is waiting for the Ben Bernanke press conference this afternoon. Will Mr. Bernanke hint that a cut in quantitative easing is underway? The answer is who cares what he says. As traders we simply want to react to the price action. If the markets sell off then we want to find a level that looks attractive to buy stocks. On the flip side, if the market rallies then we want to find a level where there will be major resistance and sell it. Traders should not be bullish or bearish, you simply just want to be on the correct side of the tape. If you are wrong then you want to be wrong small, that is why you must have a stop loss. ..
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.