Ummm....how many times we were told that the economy is RECOVERING?? LOL! The people who work for our present government are NATURAL BORN LIARS and need to be REMOVED!!!
Aug. 20 (Bloomberg) -- Stocks, commodities and the euro dropped amid concern the economic recovery is in peril as European Central Bank council member Axel Weber said the ECB shouldn’t withdraw stimulus before year-end.
The Standard & Poor’s 500 Index fell 0.6 percent to 1,068.92 at 10:19 a.m. in New York, extending its weekly loss to 1 percent. The Stoxx Europe 600 Index retreated 0.6 percent for a third straight decline and the euro slumped as much as 1.2 percent to $1.2673. Oil sank below $74 a barrel and nickel and tin led metals lower in London. Treasuries were little changed after an earlier rally sent the 10-year yield to a 17-month low and the two-year yield to its lowest ever.
Weber told Bloomberg Television that discussions about the ECB’s exit from stimulus efforts will focus on the first quarter, spurring concern the region’s economy may struggle for the rest of the year. Revisions to U.S. economic growth next week are projected to show the expansion slowed even more in the second quarter, to 1.4 percent from the 2.4 percent preliminary estimate, according to a Bloomberg survey.
“There’s a bias towards defensive assets,” said Russ Koesterich, the San Francisco-based head of investment strategy for scientific active equities at BlackRock Inc., which oversees $3.2 trillion as the world’s largest asset manager. “Investors worry about the likelihood of a double dip. This is why you’re seeing stocks and commodities under pressure and bonds rallying.”
Alcoa, Tyco
All 10 industries in the S&P 500 yesterday retreated today. Alcoa Inc. and 3M Co. fell more than 1.7 percent to help lead losses in the Dow Jones Industrial Average. Tyco International Ltd. rallied 4.2 percent after S&P said late yesterday it will replace Smith International Inc. in the S&P 500 at the close of trading on Aug. 26 as Schlumberger Ltd. completes its purchase of the oil-services company.
The S&P 500 tumbled 1.7 percent yesterday after American jobless claims climbed more than economists estimated and a Philadelphia-area manufacturing index unexpectedly dropped, data showed yesterday.
Six stocks fell for every one that gained on the Stoxx 600 index, while 17 of 19 industry groups retreated. BP Plc declined for a fifth day, losing 0.6 percent as scientists said the company’s oil spill created an underwater plume of degrading crude more than 22 miles long that’s migrating across the Gulf of Mexico.
EADS Slips
European Aeronautic, Defence & Space Co. slipped 1.7 percent after Nomura Holdings Inc. cut its recommendation on the stock. Dana Petroleum Plc. led rising shares, gaining 6 percent after Korea National Oil Corp. made a hostile 1.87 billion-pound ($2.9 billion) bid for the U.K. explorer.
German 10-year and 30-year bond yields both fell to record lows after Weber, who heads Germany’s Bundesbank, said the ECB is likely to continue to support banks through end-of-year liquidity tensions before determining in the first quarter when to withdraw emergency lending measures. The 10-year German yield fell as low as 2.26 percent, while the 30-year yield dropped as much as 7 basis points to as low as 2.895 percent.
The Shanghai Composite Index lost 1.7 percent, the most since Aug. 10, as investors speculated inflation will delay monetary easing. The MSCI Emerging Markets Index sank 0.7 percent, the first drop in six days. Korea’s won depreciated 0.9 percent, declining for the first time in four days, on concern a stalling U.S. recovery may hurt exports.
The euro fell against 13 of 16 major counterparts. The yen was stronger against 14 of its 16 most-traded peers, rising most against the Norwegian krone, by 0.9 percent.
Metals Drop
All metals on the London Metal Exchange dropped, led by declines of more than 1.4 percent in aluminum, lead and tin.
The cost of insuring European banks’ riskiest debt rose. Credit-default swaps tied to the subordinated bonds of Spanish lender Banco de Sabadell SA climbed 30 basis points to 386 and contracts on Banco Popular Espanol SA, the nation’s third- biggest commercial bank, increased 27 basis points to 393, according to data provider CMA.
Swaps on subordinated bonds issued by Allianz SE, Europe’s biggest insurer, rose 5 basis points to 87. The Markit iTraxx Financial Index of swaps on bank and insurance company subordinated debt climbed 3 basis points to a four-day high of 200, JPMorgan Chase & Co. prices show.
Stocks, Oil Fall on Economy; Euro Weakens on Stimulus Concern - Bloomberg.com
Aug. 20 (Bloomberg) -- Stocks, commodities and the euro dropped amid concern the economic recovery is in peril as European Central Bank council member Axel Weber said the ECB shouldn’t withdraw stimulus before year-end.
The Standard & Poor’s 500 Index fell 0.6 percent to 1,068.92 at 10:19 a.m. in New York, extending its weekly loss to 1 percent. The Stoxx Europe 600 Index retreated 0.6 percent for a third straight decline and the euro slumped as much as 1.2 percent to $1.2673. Oil sank below $74 a barrel and nickel and tin led metals lower in London. Treasuries were little changed after an earlier rally sent the 10-year yield to a 17-month low and the two-year yield to its lowest ever.
Weber told Bloomberg Television that discussions about the ECB’s exit from stimulus efforts will focus on the first quarter, spurring concern the region’s economy may struggle for the rest of the year. Revisions to U.S. economic growth next week are projected to show the expansion slowed even more in the second quarter, to 1.4 percent from the 2.4 percent preliminary estimate, according to a Bloomberg survey.
“There’s a bias towards defensive assets,” said Russ Koesterich, the San Francisco-based head of investment strategy for scientific active equities at BlackRock Inc., which oversees $3.2 trillion as the world’s largest asset manager. “Investors worry about the likelihood of a double dip. This is why you’re seeing stocks and commodities under pressure and bonds rallying.”
Alcoa, Tyco
All 10 industries in the S&P 500 yesterday retreated today. Alcoa Inc. and 3M Co. fell more than 1.7 percent to help lead losses in the Dow Jones Industrial Average. Tyco International Ltd. rallied 4.2 percent after S&P said late yesterday it will replace Smith International Inc. in the S&P 500 at the close of trading on Aug. 26 as Schlumberger Ltd. completes its purchase of the oil-services company.
The S&P 500 tumbled 1.7 percent yesterday after American jobless claims climbed more than economists estimated and a Philadelphia-area manufacturing index unexpectedly dropped, data showed yesterday.
Six stocks fell for every one that gained on the Stoxx 600 index, while 17 of 19 industry groups retreated. BP Plc declined for a fifth day, losing 0.6 percent as scientists said the company’s oil spill created an underwater plume of degrading crude more than 22 miles long that’s migrating across the Gulf of Mexico.
EADS Slips
European Aeronautic, Defence & Space Co. slipped 1.7 percent after Nomura Holdings Inc. cut its recommendation on the stock. Dana Petroleum Plc. led rising shares, gaining 6 percent after Korea National Oil Corp. made a hostile 1.87 billion-pound ($2.9 billion) bid for the U.K. explorer.
German 10-year and 30-year bond yields both fell to record lows after Weber, who heads Germany’s Bundesbank, said the ECB is likely to continue to support banks through end-of-year liquidity tensions before determining in the first quarter when to withdraw emergency lending measures. The 10-year German yield fell as low as 2.26 percent, while the 30-year yield dropped as much as 7 basis points to as low as 2.895 percent.
The Shanghai Composite Index lost 1.7 percent, the most since Aug. 10, as investors speculated inflation will delay monetary easing. The MSCI Emerging Markets Index sank 0.7 percent, the first drop in six days. Korea’s won depreciated 0.9 percent, declining for the first time in four days, on concern a stalling U.S. recovery may hurt exports.
The euro fell against 13 of 16 major counterparts. The yen was stronger against 14 of its 16 most-traded peers, rising most against the Norwegian krone, by 0.9 percent.
Metals Drop
All metals on the London Metal Exchange dropped, led by declines of more than 1.4 percent in aluminum, lead and tin.
The cost of insuring European banks’ riskiest debt rose. Credit-default swaps tied to the subordinated bonds of Spanish lender Banco de Sabadell SA climbed 30 basis points to 386 and contracts on Banco Popular Espanol SA, the nation’s third- biggest commercial bank, increased 27 basis points to 393, according to data provider CMA.
Swaps on subordinated bonds issued by Allianz SE, Europe’s biggest insurer, rose 5 basis points to 87. The Markit iTraxx Financial Index of swaps on bank and insurance company subordinated debt climbed 3 basis points to a four-day high of 200, JPMorgan Chase & Co. prices show.
Stocks, Oil Fall on Economy; Euro Weakens on Stimulus Concern - Bloomberg.com