Markets were staggered yesterday by a commodities
collapse and the terrorist event that occurred in Boston. The early collapse in gold, silver and oil
prompted a general wave of selling across the market. The selling and market decline may have been
the result of hedge funds and other investors deleveraging their portfolios to
cover shorts, and possible margin calls.
The bombings at the Boston marathon occurred close to market close and
accelerated the market decline. Most
indexes were down 2% or more by the closing bell. Today’s market action is showing some
stabilization, with the Dow up triple digits and other markets following. Gold is on the mend, but the modest gain
(comparatively speaking) may be just a bounce from the 10% decline
yesterday. Economic reports were mixed
this morning. Global and US domestic GDP
estimates were reduced by the International Monetary Fund (IMF). Manufacturing declined slightly, but it was a
solid report, highlighted by robust auto sales. The dollar is mostly lower
today except against the Japanese Yen, which continues a radical decline.
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