(As of 7:15 am PST)
Stocks are retreating from their day highs which saw the
Dow briefly trade over 16,000 and the S&P500 over 1,800. There is not a lot of
domestic data to trade on which has investors looking elsewhere for news. Asian markets surged late Friday afternoon
and today as investors further reacted to the details of China’s plenum
reforms. The market’s initial reaction
last week to the broad sweeping plan of the Chines Third Plenum was a big
disappointment. Over the weekend
however, details began leaking out on the specifics of the reform policies
which turned investor sentiment positive.
A 60-point list of policy actions ranging from finance to the one-child
policy in China, exceeded expectations and gave investors confidence in the
direction China’s new leaders are going.
Equity markets in Asia rallied late Friday and into Monday. The optimism carried over into Europe and
briefly at the open on Wall Street. Later today, investors will be tuning in to speeches from several Fed
members for clues on the eventual exit of the Fed’s bond purchases. For now, markets seem content with monetary
policy direction and the accommodative stance of Fed chair nominee Janet
Yellen. Gold is lower and oil is
slightly lower at just under $94 per barrel. Profit taking and sell limits will likely act
as the governor on the market’s upside momentum for the rest of the year,
putting the brakes on a breakout rally.
No comments:
Post a Comment