Daily Market Report
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The Swiss National Bank (SNB) also cut interest rates by 100bp after a 50bp cut earlier this month
Thu, Nov 20 2008, 13:04 GMT
by Wachovia Research Team
Starting yesterday afternoon, U.S. equity markets experienced a steep drop that led to Asian and European markets selling off overnight. The resurgence of volatility and risk aversion has helped the U.S. dollar strengthen against all major currencies except the Japanese yen. Factors leading to yesterday's decline in equities included plunging U.S. consumer prices, record low housing starts, FOMC minutes that indicate the Fed is bracing itself for a long, protracted recession and possible deflation, and the big 3 U.S. automakers leaving congressional talks empty handed.
Overnight, the European Central Bank (ECB) announced that a Eurozone fiscal stimulus plan is in the works. The current plans call for a 130 billion euro package designed to help prop up the region's economy. The Swiss National Bank (SNB) also cut interest rates by 100bp after a 50bp cut earlier this month. The cuts put Swiss interest rates on par with U.S. rates at 1.00%, and show that SNB officials are more committed to reviving the economy than their ECB counterparts.
Data to be released today includes Initial Jobless & Continuing Claims, Philadelphia Fed, and Leading Indicators. Three Fed officials will be speaking throughout the day and Treasury Secretary Paulson will speak on the U.S. economy at 2:00PM EST.
Published on Thu, Nov 20 2008, 13:07 GMT
Archive
- Risk aversion was the main theme of yesterday's trading session
Published On Fri, Jul 3 2009, 12:25 GMT - The US dollar and the yen fell against most major currencies
Published On Thu, Jul 2 2009, 13:25 GMT - The US dollar strengthened against the euro and the pound yesterday
Published On Wed, Jul 1 2009, 12:25 GMT - Daily Market Report
Published On Tue, Jun 30 2009, 12:50 GMT - The Swiss franc ended the week lower against the euro
Published On Mon, Jun 29 2009, 13:56 GMT
Wachovia Corporation
| P.O. Box 025383 Miami, FL 33102-5383
http://www.wachovia.com | sam.bullard@wachovia.com
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