Thursday, February 11, 2016

Economic Journal - Thursday, 2/11/2016

(As of 7:20am, PST)


A cloud of uncertainty hovers over the markets today after another difficult trading session yesterday that saw the major indices close negative for the fifth straight session. The continuing themes of dropping oil prices and global market slowdown were exacerbated yesterday when Fed Chairwoman Yellen’s testimony to the House Finance committee failed to instill confidence in the markets. Yellen didn’t take the dovish tone that investors were looking for by acknowledging that the U.S. economy might suffer if the unstable global economy continues which may result in the Fed postponing the next interest-rate increase. What followed her testimony was a late session selloff that has carried into today. Yellen continues her testimony today in front of the Senate Banking Committee and unfortunately there isn’t much on the economic calendar to distract investors. Oil has continued its tumble and is currently trading below $28 per barrel while the 10 year Treasury yield has dropped to its lowest level in three and a half years. This environment has cause a flight to safe haven assets like gold and bonds which are surging. Something to watch for is whether the S&P500 can hold up to its low of 1812 on January 20. Currently it is trading at 1836. Buckle your seat belts for another wild ride today.

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