From Bloomberg.com
The four-week rout in equities has wiped out more than $8 trillion in global stock values before central bankers from around the world prepare to meet in Record-low yields on U.S. Treasuries show traders expect Federal Reserve Chairman Ben S. Bernanke to signal a third round of asset purchases. Libyan rebels captured two of Muammar Qaddafi’s sons in the battle to end his 42-year rule.
“Eyes are clearly pointing to Bernanke’s speech on Friday,” Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, which manages $54 billion, said in a telephone interview. “People are of the belief that there’s an increasing likelihood of a new quantitative easing program. We hold no expectation that we’re going to see that. The hurdle remains pretty high. I’m a little concerned that if get some rally on that expectation and it doesn’t come through that the equity market would be set for a decline.”
If there is no announcement of a QE3 expect a sell off in the market.
No comments:
Post a Comment