Global Markets React to Euro Bailout This Monday we saw the EU, along with the IMF release a near trillion dollar rescue plan of the EU region. After the sharp and historical selloff the markets witnessed last week, Monday opened much higher (close to a 4% gap in most indices) on the news of the […]
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Capital Markets Lab Weekly Market Wrap Up, May 3-7, 2010
U.S. Market Crashes Intraday On Thursday, May 06, 2010, the U.S. market saw extreme volatility that may not have been seen since Black Monday in 1987. At about 2:45 EST the S&P 500 reached a low of 1065.79, this was 100 points lower than the open, or about – 8.6%. Within 20 minutes of this […]
Capital Markets Lab Weekly Market Wrap Up, April 26-30, 2010
World Economic News European Debt Issue Spreads On Tuesday, Standard and Poor’s Credit Agency downgraded Greece’s credit rating to BB+, considered “speculative” or “junk”. The credit agency also downgraded Portugal’s government debt to A-, two levels from where it stood before. On Wednesday, S&P followed with yet another downgrade to Spain’s credit rating to AA […]
Capital Markets Lab Weekly Market Wrap Up, April 19-23, 2010
Market Volatility Increases, Short Term Shift to Risk Aversion This week volatility came back to the markets after what had seemed to be a parabolic move upwards in the major equity indices over the past few months. Many traders are describing the situation as the inevitable occurrence they were all waiting for, at least in […]
Capital Markets Lab Weekly Market Wrap Up, April 12-16, 2010
Industrial Production Index The Federal Reserve Board released the March number for the Industrial Production Index. The result was an increase in the total index of .10%. The Industrial Production Index acts as a measure of output. It takes data from mining, manufacturing, electric utilities and gas utilities. Values are updated monthly. The manufacturing component, […]
Capital Markets Lab Weekly Market Wrap Up, April 5-9, 2010
Industry Activity Energy: Refineries Behind as Oil Prices Continue to Rise Recently we covered the bullish breakout in crude oil prices and the opening of oil exploration by the current administration. Along with oil prices, we noted the overall energy sector bid and potential profits to be made in the area. Among the different industries […]
Capital Markets Lab Weekly Market Wrap Up, March 29-April 02, 2010
The United States Recovery The ISM manufacturing number came in at 59.6 and was better than estimated; indicating that the manufacturing industry is exhibiting increased productivity. Analysts expected an Increase from 56.5 to 57 but were surprised with the large jump the index made. Benjamin Tal, a senior economist at CIBC World commented: “Manufacturing is […]
Capital Markets Lab Weekly Market Wrap Up, March 22-26, 2010
Markets React to Healthcare Reform On Sunday, March 21, 2010, after nine months of healthcare reform debate, the U.S House of Representatives voted 219-212 in favor of the unprecedented $940 billion healthcare overhaul that will extend coverage to 32 million more Americans. Although stock futures pointed lower on Sunday night, the markets experienced a 20 […]
Capital Markets Lab Weekly Market Wrap Up, March 8-12, 2010
The Escalation of Inflation in China The Chinese Consumer Price Index (CPI), a chief measure of inflation, rose to a 16-month high in February, up to 2.7 percent from a year ago, which was 1.5 percent in January this year; beating forecasts of 2.3 percent. Additionally, the Producer Price Index (PPI), a major gauge of […]
Capital Markets Lab Weekly Market Wrap Up, March 1-5, 2010
Current Account Balance: China and the United States The chart below consists of the current account balances of the United States, China, and emerging economies. The Current Account Balance of a country consists of three economic components: the trade balance, net factor income from abroad, and net transfer payments. The trade balance is defined as […]