(As of 7:15 am PST)
Stocks are reversing course
Friday after slipping yesterday, as a turnaround in oil prices and a softening
Japanese Yen helped to spur buying heading into the weekend. Thursday’s
downbeat day resulted in losses of more than 1% for all the major indexes, with
the Dow Jones Industrial Average posting its biggest single day drop since
February 23rd. Today’s turnaround is being fueled by a surge in oil prices. Oil
is up 5% today on reports that a production freeze agreement will be reached
soon. Fears over the screaming price of the yen have subsided today, as the yen
fell against the dollar on rumors that Japanese officials would intervene. The
yen moved to its highest level against the dollar in 18 months yesterday as
concerns over the global economy lifted the currency. Perhaps the biggest
market mover today came from comments made overnight by Federal Reserve
Chairwoman Janet Yellen. While meeting with former Fed Chairs Ben Bernanke and
Paul Volcker at a gathering last night, Yellen remarked that the US economy appeared
strong in light of global economic weakness and that she didn’t see any “imbalances”
forming like overvalued asset prices. Her remarks have soothed investor nerves
from yesterday and have ignited an appetite for risk assets today.
International markets are mixed today. European stocks are surging into the
close with green across the board, while Asian markets finished the week on a
mixed note. Today’s reversal is surprising and proves this market may be more
resilient than many experts think.
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