Wednesday, March 27, 2013

Economic Journal - Wednesday, 3/27/2013

(As of 7:15 am PST)
 
Europe is dominating the headlines once again this morning.  Italy has yet to form a coalition government since its election in February with the leader of the Democratic party remarking today that only an “insane” person would want to govern Italy and that the country was a “mess.”  The comments sent investors running for the hills frustrated by the lack of progress and nervous about the future of Italy.  The Cyprus situation is not getting any better either.  Banks remain closed as Cypriot authorities are expected to detail capital controls later today in an attempt to reopen banks tomorrow.  Customers may find it more difficult than they expect to access and move money for months to come.  Economic sentiment throughout the euro-zone region fell larger than expected this month.  US data is light today with one report showing pending home sales declining by 0.4% in February.  Treasury prices are roaring higher this morning as investors flock to safety sending interest rates lower.   Gold is higher and oil lower.  The market is acting in a frenetic manner at these tops, with small pullbacks triggering opportunities for some investors to “buy on the dips” while others still waiting for a deeper correction.  

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