Tuesday, October 7, 2014

Economic Journal - Tuesday, 10/7/2014

(As of 7:20 am PST)

We’re off to another disappointing start on Wall Street today.  There’s a cautious mood throughout global equity markets after an uninspiring report from the International Monetary Fund was released earlier today. The IMF cut its global growth forecast to 3.3% in 2014 and 3.8% in 2015. The downward revisions from the IMF’s July forecasts, reflect a stagnating European economy that looks like it’s on the brink of another recession, and weaker results out of Japan and China.  All of the major European indexes were down more than 1% today after the IMF report and several disappointing euro-zone economic reports.  In the US, economic data is light as investors braced for the kickoff of earnings season tomorrow.  Hopefully, earnings results will provide a ‘shot in the arm’ of what appears to be a tired and fragile US stock market. Gold is higher today and oil lower while the 10 yr. treasury yield fell below 2.4% as money flowed to the safe haven in the early going of today's session.

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