(As of 7:20 am PST)
It’s
a quiet day in the markets with most Asian markets closed for the week due to
the Lunar New Year holiday. US stocks
are down as Europe has reentered the picture with political risk in Spain and
Italy causing borrowing costs to rise.
We are weeks away from the US budget sequestration, and that too is
adding some pressure to markets. The
economic report to watch for this week is Wednesday’s retail sales report. Analysts expect retail sales for the month of
January to rise a scant 0.1%, with rising oil prices and the expiration of the
payroll tax cut tightening the wallets of many Americans. Strong corporate earnings so far this quarter
may support a stronger than expected retail sales number. Gold is down 1% and oil down as well today. Interest rates are flat and volatility edging
up slightly. With Asian markets closed
and no economic reports to give direction, investors are being forced to linger
on the issues of Europe and budget sequestration, taking some small profits as
they wait.
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