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.

T3's Take 3: Yellen Launches a Rollercoaster of Doves


Today's financial recap and tomorrow's financial outlook.

Today on T3 Live

T3 Live cordially invites you to our first annual Finance Festival, scheduled for November 6-8 in sunny Miami, Florida.

Since we announced the event on July 8, we've added some very big names to the agenda, including:

-David Kotok, Founder and Chief Investment Officer of Cumberland Advisors
-David Rosenberg, Chief Economist of Gluskin Sheff
-Ivan Zinn, Chief Investment Officer of Atalaya Capital Management

This is your final chance to secure our early bird special pricing, so we urge you to register today:

Read about our expanded lineup here.

FOMC Rate Decision

In an 8-1 vote, the Fed decided to hold off on raising rates in what was the most highly-anticipated rate decision in years.

The lone dissenter was Richmond Fed President Jeffrey Lacker, who is generally hawkish.

The board cut its forecasts for GDP growth and inflation in 2016 and 2017, but improved its expectations for the unemployment report.

In its statement, the Fed noted that inflation is still well below its 2% target, and that inflation is expected to remain low in the near term.

And at the press conference following the announcement, FOMC Chair Janet Yellen said that Fed officials said that financial market volatility remains an issue, though most Fed officials still expect to raise rates this yea

World Equity Markets

US markets opened up, and traded around a tight band as everyone awaited the FOMC's rate decision. After the decision was announced, stocks dropped quickly, but began skyrocketing, led by the interest rate sensitive sectors like utilities and real estate.

The S&P 500 hit an intraday high of 2020.86 at 2:48 p.m ET, but gradually gave up the gains to finish at 1990.20, down 0.3%.

The NASDAQ did slightly better with a 0.1% gain, aided by a huge rally in biotechnology stocks.

The Fed's dovishness send the dollar down sharply againt the euro and yen, and it boosted gold, which rose 1.3%.

European equities finished their day mixed, as investors were on edge about the US rate decision. The German DAX finished flat, while the French CAC rallied 0.2%.

The Hang Seng fell 0.5% on a drop in material and health care stocks. Japan's Nikkei managed to rallied 1.43% despite disappointing trade data.

The Korean Kopsi ended flat, and the Taiwanese TAIEX  jumped 1.35%. 

China Slumps

The Shanghai Composite plunged during its last half-hour of trading, losing its 1.7% rally to finish down 2.1%. Traders were uncertain that intervention from the government will be enough to prop China's economy after signs of further economic slowdown.

Li Jangyuan, head of securities investment at Shanghai Zhaoyi Asset Management said the government's buying activity doesn't have a clear strategy or tactics, making it difficult for investors to follow. 

The assistant chairman of China's Securities Regulatory Commission is also  under investigation for "severe violation of discipline." And it was announced that the President of China's largest brokerage, Citic Securities, was under investigation for insider trading. 

Friday's Financial Outlook

US economic news for tomorrow will include the leading index, housing change in net worth, and the Baker Hughes rig count. 

Overseas economic data will feature Canadian CPI.

There are no major earnings releases scheduled for tomorrow.
< Previous
  • 1
Next >
No positions in stocks mentioned.
Featured Videos