(As of 7:15 am PST)
It looks like a quiet opening for today's stock market,
but there are many diverse forces pushing and pulling at market momentum. Japan continues to rise dramatically with the
implementation of a massive quantitative easing program. Other Asian markets are not being pulled
along with Shanghai, in particular, falling hard. News is negative from Europe, with several
austerity measures having been thrown out the Portugal's high court and threats
from the Euro bank of removal of financial aid as a result. There is some merger activity in the US with
GE buying energy company Lufkin. It is a
reminiscent feeling of merger Monday, a trend that boosted markets a couple of
years ago. There is certainly enough
money on corporate balance sheets to think that we may see a spate of
mergers. Commodities are mixed as is the
US dollar. Gold and oil are near
flat. Mortgage interest rates are
falling hard today. Expect Japanese
quantitative easing to win the day and eventually pull US markets higher. It is hard to fight the result of the
infusion of massive liquidity into the financial system.
No comments:
Post a Comment