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T3's Take 3: Ugly Post-Fed Hangover Sets In


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

And just today, we confirmed that Charlie Garcia, CEO of ALPFA, the nation's largest Latino professional organization, has signed on to moderate our "Look Ahead to 2016" panel.

Read about our expanded lineup here.

World Equity Markets

US equities were hammered down today as traders remain concerned about the strength of the economy following the Fed's decision to not raise rates Thursday.

The S&P 500 closed down 1.6%, with the energy sector suffering the biggest losses among major sectors due to the a dip in oil prices. Financials, materials and transports were also notablye weak.

The NASDAQ did slightly better with a 1.4% loss.

The US dollar initially fell against most major currencies,but gained against the Canadian dollar, the British pound, and the euro. The US 10-year Treasury yield fell 4 bps. 

European markets were also hit hard from the Fed`s rate decision, as concerns about the global economy grew. The German DAX tumbled nearly 3.1%, while France`s CAC tanked 2.6%. European bond yields plummeted as a result.

The German bund fell 11.8 bps, as well many other major European bonds falling more than 12 bps. 

Stocks in Asia enjoyed a small rally on yesterday's US interest rate decision. The Shanghai Composite inched up 0.5%, helped with economic data showing increasing new home prices for a fourth consecutive month. The Hong Kong Hang Seng rose about 0.3% on a rally in real estate companies. Japan didn't get to participate in the rally however. The Nikkei fell nearly 2%.

Oil Prices

Oil prices slid yesterday after the release of the Fed's rate decision, which indicated significant concern about the strength of the global economy.

Today, the dollar bounced back, pushing oil down again.

Prices slid further this afternoon despite the Baker Hughes rig count showed a cut in oil rigs for a third consecutive week. 

In addition to the Fed, traders remain concerned about oversupply conditions and fallout from the China slowdown.

Gold Rally

Today, gold shot up again despite strength in the dollar as it may be coming back into favor as a safety play. Gold had been widely derided around earlier in the year.

Gold prices rallied on yesterday's rate decision, with gold futures hitting their second-highest close for the month on the Fed's sudden dovishness.

Higher interest rates tend to hit gold since it is not an interest-paying asset.

Monday's Financial Outlook

US economic news for Monday will include existing home sales. 

Overseas economic data will feature China`s conference board, leading economic index. 

Lennar (LEN) will report earnings before the open on Monday. Thor Industries (THO) will release its earnings report after the close.
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