Tuesday, January 13, 2015

Economic Journal - Tuesday, 1/13/2015



(As of 7:10 am PST)

Equities opened sharply higher this morning, rebounding from two straight sessions of losses as investors turned to corporate earnings and overseas news in early trading.  Weak data in Europe, including falling wholesale prices in Germany and consumer prices in Greece, sent European stocks higher in a ‘bad news, good news’ trade markets have been known for in recent months.  Hopes were strengthened for the start of a European Central Bank quantitative easing program, as investors pushed stocks higher on the disappointing data. Adding to the optimism on Wall Street were positive earnings results from Alcoa, which unofficially kicked off Q4 earnings season after the bell yesterday. Oil continues its remarkable decline, down 1.5% to just under $46 per barrel. Gold and the US dollar are higher while the 10 yr. treasury yield rose after a sharp drop in the previous three sessions. Volatility has been the story of the new year so far, and will likely stay elevated throughout the remainder of the week.

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