The Federal Reserve Chairman Ben Bernanke is beginning to testifying in front of the Joint Economic Committee. In his opening remarks, the head of the central bank has signaled that he shall continue to keep the current quantitative easing program in place. Traders and investors can easily see the decline in the U.S. Dollar Index after his comments were released. Chairman Bernanke warned that reducing the Federal Reserve's efforts to keep borrowing rates low would carry a substantial risk of slowing or ending the economic recovery.
One sector that will tell the tale of the market is the financial sector. This morning, all of the leading financial stocks are coming under early selling pressure. When the financial stocks decline it is very difficult for the major stock indexes to stage any kind of meaningful bounce. Today, the Financial Select Sector SPDR (ETF) (NYSEARCA:XLF) is trading lower by 0.09 cents to $13.41 a share.
This morning, the U.S. Dollar Index topped out around 4:30 am EST. This was the same exact time that the S&P 500 Index e-mini futures (ES-M2) bottomed out. Traders can easily see how these two indexes continue to trade inverse to each other. When the U.S. Dollar is devalued it will inflate asset prices around the world. Traders can see how the large bank stocks are surging higher today.
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BlackRock, Inc. (NYSE:BLK), Guggenheim Partners, LLC., and Claymore Investments, Inc. announced that BlackRock has entered into a definitive agreement to acquire Claymore Canada. Upon closing, the transaction will augment BlackRock's world-class roster of investment fund products and deepen the Company's footprint in Canada.