olympics 2012 water polo Markets roar back in volatile session
Federal Reserve Open Market Committee released a statement that made no mention of recent market gyrations, but quickly rebounded to post strong gains on the day.
The FOMC only nod to the growing lack of confidence in governments and central banks response to a slowing economy was to publish for the first time a timeline of its intended future interest rate hikes. It also noted that the economy has grown more slowly than expected, and signalled it plans to keep money supply at current levels.
who had been wishfully hoping that the Fed would come in . . . with a sweeping new monetary stimulus program had their spirits crushed by (Tuesday stay the course announcement.
important to recognize though that although perhaps disappointing to stock and commodity markets in the short term, it can be viewed as positive for the broader economy. After all, if the Fed had panicked and done something drastic, people would next be wondering just how bad the situation has become. Bailouts and stimulus are signs of a weak economy, strong economies don need outside help. Toronto, the benchmark S composite index rose for just the second time this month, gaining 438.30 points, or 3.76%, to 12,109.26, with all 10 of its sub indexes advancing.
Bank stocks were the most heavily weighted stocks to advance on Tuesday. Bank of Nova Scotia gained 5.71% to $52.78, Toronto Dominion Bank rose 4.67% to $75.02 and Royal Bank of Canada rose 3.57 per cent to $50.24.
The price of crude oil, which had risen earlier in the day, fell back to close at US$79.30 a barrel, a drop of US$2.01. Gold continued to post new records,
however, closing at $1,743.00, a gain of US$29.80. Earlier in the day it had gone as high as US$1,782.50 an ounce. dollar for the first time since Jan. 31 earlier in the day, the Canadian dollar rose 1.24 cents to close at $1.0216 almost erasing the previous day loss of 1.32 cents. It was the dollar first gain in eight sessions.
Canada junior Venture exchange gained 28.94 points, or 1.72%, to close at 1,711.23.
The Dow Jones industrial average, which dipped briefly into negative territory following the release of the FOMC statement, roared back to post a 429.92 point advance, rising 3.98 per cent, to close at 11,239.77 its third positive finish in the past 12 sessions. The Nasdaq composite gained 124.83 points, or 5.29%, to 2,482.52.
Here’s the news investors were watching today:
Fed promises to keep rates low for at least 2 years
Apple briefly passes Exxon as most valuable company
How to prepare for the coming recession: Rosenberg
ON DECK WEDNESDAYBritain releases inflation data International Energy Agency’s monthly oil market report UNITED STATES