(As of 7:25 am PST)
Stocks are lower as tensions rise in Syria and global
markets sold off on the likelihood of a US military strike. Markets erased gains in the late afternoon
yesterday after US Secretary of State, John Kerry, said in a press conference
that the US will hold Syria accountable for its actions, charging the Syrian
government with chemical weapons use which killed hundreds of innocent
civilians. Global markets sold off on the
escalating situation, while gold prices surged 2% as investors sought after the
perceived safety of the metal. Oil
prices are also higher by 2% and treasury prices were bid up as
investors moved to the safe haven.
Yields consequently fell. In
economic news, US home prices continued to grow in June, according to the US
Case-Shiller index. Home prices
increased 2.2% in June, but lower than May, possibly indicating a slowing pace
due to the recent surge in interest rates.
US consumer confidence rose slightly in August, but not enough to erase
early losses. In other news, investors
continue to remain concerned about the Fed’s bond taper strategy while also
being reminded yesterday by US Treasury Secretary, Jacob Lew, that the US
government will hit the country’s debt ceiling in mid-October unless the debt
limit is increased by congress. Expect
losses to accelerate as the day wears on.
No comments:
Post a Comment