(As of 7:15 am PST)
Stocks continue their march lower with markets around the
world taking profits on disappointing China news and confusion over the next
Fed policy move. Asian markets began the
selling overnight as investors reacted to the conclusion of a four-day meeting
among Chinese leaders known as the Third Plenum. The meeting was expected to provide some
detailed reform plans for the course of the Chinese economy, but instead a
broad sweeping plan left investors disappointed. The selling carried over into Europe as
markets reacted to the possibility of a rate hike by the Bank of England as UK
unemployment dropped unexpectedly. US
stocks are lower on the China news and also as investors positioned themselves
ahead of tomorrow’s testimony from the Federal Reserve’s Janet Yellen. After upbeat October data suggested the US
economy remains on steady footing, markets are expecting the Federal Reserve to
begin tapering their bond buying as early as the end of the year. Expect volatility to pick up as the year
winds down and investors consolidate gains ahead of a perceived tightening of
the ‘loose money’ spigot.
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