Tuesday, March 18, 2014

Economic Journal - Tuesday, 3/18/2014

(As of 7:15 am PST)
 
US stocks are marching higher today after the Dow recorded triple digit gains yesterday. The move higher is being supported by this morning’s speech from Russian President Vladimir Putin, in which the president signaled Russia is not seeking “a partition of Ukraine.”  Global markets moved higher on the comments.  Housing data in the US also have given stocks a lift in early trading.  Housing starts fell slightly in February, however building permits (a sign of future demand) climbed 7.7% to the highest rate since October as plans to build multi-dwelling units like apartments and condos picked up. Today marks day one of the two-day Federal Open Market Committee policy meeting.  A lot of attention will be given to new Fed Chair Janet Yellen as she announces the Fed’s next step in the wind-down of its bond-buying program tomorrow afternoon.  Gold prices are getting hit today ahead of the meeting as the precious metal has been bid up in recent weeks.  Interest rates are flat for the moment while the US dollar index is up.  It’s been a good start to the week, but any surprise move by the Fed this week could spark a return to volatility.

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