(As of 7:12 am PST)
Positive
news from Europe and Asia has investors forgetting about troubles with
tapering. Markets are up after a week’s
worth of declines. PMI, a key measure of
economic activity, was up and above consensus estimates both in China and in
Europe. It seems that Europe may be
awaking from its economic malaise. On
the US domestic side of the data, jobless claims were up moderately, easing
anxiety about the rate of stimulus withdrawal that will occur this fall. Gold and oil are both up slightly, while the
US dollar is stronger against most other currencies. Interest rates continue to rise and home
buyers continue to buy as well. It seems that buyers fear that rising interest
rates will price them out of the market.
The dramatic rise that we have seen in interest rates is likely to place
a tight ceiling on any potential rallies.
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