Monday, March 11, 2013

Economic Journal - Monday, 3/11/2013

(As of 7:12 am PST)
 
After a strong performance last week that saw the Dow soar to record heights, stocks are starting this week off on a softer note.  Investors have taken the foot off the pedal, keeping an eye on fiscal headwinds from the sequester while digesting disappointing Chinese data out today.  Although markets for the most part shrugged off Congress’ inability to a strike deal back on March 1st regarding the budget sequestration, there’s still cause for concern for the next couple months as the effects of billions of dollars in spending cuts hit the economy.  This week, investors will be watching as both heads of Congress work to introduce their budget resolutions aimed at addressing the deficits.  In international news, Chinese stocks finished lower after disappointing data showed consumer inflation rising and industrial activity growing at a slower pace in January and February.  European markets traded mostly lower after Fitch rating agency cut Italy’s credit rating on Friday.  Gold is slightly higher, and oil down by 0.5% while interest rates are up.  The US economic calendar is empty today, with investors pausing to look for direction after an historic week last week.

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