Well, here I am again to throw in the past week Market Movers!
Will keep this simple, fast and short!
- Hopes for government stimulus (rather than actual evidence of improving economies) spark short rally Monday-Tuesday.
Markets wanted central bank easing and EU money printing or further loans to troubled nations.
Part of the reason markets sold off Thursday was that once the easing news was out, it exhausted the current supply of good news, thus encouraging profit taking.
- Suspicion that central bank easing suggested more weakness than is currently priced into markets caused pullbacks, after the ECB, BoE and PBOC announced further easing.
- Bad PMI (Purchasing Managers’ Index) data ironically helped risk assets because of Fed QE 3 hopes, but good data on Thursday hurt, because it dampened those same hopes.
- Major indexes nearing technical resistance Thursday dampened the short covering rally ignited by hope for central bank and EU action.
With indexes at technical resistance levels, that contributed to a ‘sell the news’ reaction to news of central bank easing.
- US Jobs reports disappointed, drove Europe and US markets lower.
Peace and Happy Trading!