Thursday, December 4, 2014

Economic Journal - Thursday, 12/4/2014




(As of 7:15 am PST)

US stocks opened lower after a record finish yesterday as investors’ eyes were locked on developments (or lack thereof) out of the European Central Bank. Market strategists and traders alike were expecting ECB President Mario Draghi to put forth dovish signals today in his press conference after the central bank’s policy setting meeting. Draghi’s announcement that possible quantitative easing could come next year surprised investors after expectations that the ECB may enact new stimulus measures before the end of the year to boost growth in the struggling euro-zone. European stocks fell late in the session after Draghi’s comments. Meanwhile, Asian stocks rallied today, with the Chinese Shanghai Composite index soaring over 4%, the biggest rise in two years, after optimistic reports on China’s overall economy. Most Asian broad indexes finished the day in the green. At home, data is light, with a report on jobless claims showing claims fell back below 300,000 last week. The report comes before tomorrow’s nonfarm payrolls report, which always has a big impact on trading. Oil and gold are lower today while interest rates are flat.

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