Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: The European Central Bank's Deafening Silence


Strengthen your portfolio in good times and bad.


The European Central Bank's Deafening Silence

The European Central Bank is running out of bullets as record-low interest rates fail to stop a deepening recession. According to Bloomberg, policymakers are at a loss and options are limited: European Union rules prevent the bank from buying bonds directly from governments, and the EU is without a Treasury that could back it should steep losses result from new measures.

Some believe the European Central Bank has yet to exhaust all creativity, but the institution hasn't been commenting on specifics and the silence is deafening. In the interim, financial tension in the region continues to spook investors.

For additional context, see Professor Bennet Sedacca's Assets in Free Fall.

From the Bull Pen: Is gold still the option? Those bullish can continue to play the ETF (GLD). A sell stop can be set below $92-93 in the short term.

From the Bear Cave: If you're in the "the euro is ultimately doomed to failure" camp, look to the Currency Shares Euro Trust (FXE) for a downside play. In the near term, a buy stop can be set above $129-$130.

Quick Check Around the World

Asian trading closed with the Hang Seng -2.49%, Nikkei -1.87%, Sensex -2.21%, Taiwan -2.03% and Shanghai 1.54%.

Glancing towards Europe, we see the CAC -3.02%, DAX -3.53%, FTSE -2.60%

As of 8:10 AM EST, S&P Futures are trading -15 to 765, and Nasdaq futures are -17 to 1153.

A Look At Commodities

Crude oil is trading -1.51 to 38.67. Gold is +16.2 to 992.70. Silver is +0.37 to 14.305, and copper -5.4 to 141.70.

The dollar index is +0.3300 to 88.0800.

On the Radar


08:30 Consumer Price Index (MoM & YoY) (0.3% & -0.1%)
08:30 Consumer Price Index NSA
08:30 Consumer Price Index Ex Food and Energy (MoM & YoY)

TGI Friday! Good luck and have a great weekend!

Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter - 14 day FREE trial

< Previous
  • 1
Next >
No positions in stocks mentioned.

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.

Featured Videos