(As of 7:20 am PST)
After a back and forth day
that saw stocks trade down in the final hour, investors are hopping back in to recoup
most of yesterday’s losses. Investors
applauded US housing data that showed construction on new US homes rose 0.8% in
February while building permits rose 4.6% to the highest level since June
2008. The data continues to point to a
longer-term trend of strength in the housing recovery. After dominating discussions and headlines
Monday, Cyprus remains front and center today with legislators scheduled to
meet in just a few hours to vote on the controversial bailout plan for the
struggling nation. A new draft bill has
been submitted that would eliminate a portion of the tax levy on deposits below
20,000 euros, however the levy still exists for amounts above that. The issue with Cyprus is not Cyprus itself,
but whether or not it sets a precedent for other larger struggling economies
throughout Europe. We will keep our eyes
on the story. European markets remain
mixed while Asian markets recouped most of yesterday’s losses. Gold and oil are slightly lower and interest
rates are down with the 10 year below 2%.
Economic conditions appear to be improving in the US. As such, investors will be listening closely this
week as the Fed begins its two day interest rate meeting today, looking for
guidance on the central bank’s plan for exiting its bond buying program as the
economy rebounds.
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