(As of 7:05 am PST)
The market opened lower this
morning after the sequester deadline was hit.
Automatic budgets cuts are now taking hold and are likely to repress the
fledgling economic recovery we were seeing over the last few months. It is surprising that the market is not down
by a greater margin. Global economic
data was mixed, but slanted to the negative.
China manufacturing growth eased a bit and numbers out of Europe were
generally negative. The dollar is up
strongly as investors seek safety in US Treasuries. Commodities are slumping except for gold,
which is up moderately. Oil prices, in
particular are being hit hard, with the price of a barrel off over 1% and
approaching $90 per barrel. Volatility
is surging with the uncertainty that the sequester brings. Interest rates are stable.
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