business newsThe Rally Forges On
Today's financial recap and tomorrow's financial outlook.
PRINT
-
Stay Connected
-
-
-
-
On the global news stage, new Bank of Japan governor Haruhiko Kuroda said that he would do "whatever it takes" to fight deflation in Japan and increase inflation to 2%. This echoed the statements made by ECB president Mario Draghi last August when he stated that he would do whatever it took to defend the survival of the euro.
Also in Asia, China instituted new real estate tightening measures to curb price speculation on new home purchases. For second-home purchases, buyers will be required to post a larger down payment and be forced into higher interest rate mortgages. As well, income taxes on all home purchases will rise to 20%.
Oil struggled today as did the eurodollar, which early on kept risk markets lower. Treasuries were generally weak and sold off. The 10-year yield rose three basis points to 1.874%.
Tomorrow's Financial Outlook
Tomorrow morning is the February ISM non-manufacturing composite, which economists are expecting to remain relatively unchanged month-to-month at 55.0 from January's 55.2. Last week, the ISM manufacturing composite increased to 54.3 from 53.1 the month prior.
Overnight in the US, China will release HSBC services PMI and the Reserve Bank of Australia will make its monthly rate decision. While the RBA has been more dovish in its recent commentary, the overwhelming majority of economists do not believe that they will lower rates from the current 3% level. Lastly, the UK and eurozone will release their respective services PMI from February.
As the 4Q earnings season comes to a close, Smith & Wesson (NASDAQ:SWHC) and VeriFone Systems (NYSE:PAY) will be the only major reports.
Twitter: @Minyanville
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
