SINGAPORE, Jan 30- Gold edged higher on Friday after falling more than 2 percent to a two-week low overnight on concern over a looming increase in U.S. interest rates, with bullion remaining on track for its biggest weekly drop in two months. *Spot gold was up 0.4 percent at $1,261.16 an ounce weakest since Jan. 15. Gold's 2.2- percent drop overnight was its steepest...» Read More
The hot topic on the Street is the probability of a recession. Robert Albertson, chief strategist at Sandler O'Neill, and this morning Angelo Mozillo, CEO of Countrywide both voiced fears that a recession was coming. Opinions are sharply divided on this. David Bianco, UBS' Equity Strategist, said earlier this month that the S&P seems to be signaling a "financial sector recession" (i.e. that a recession is expected to mostly affect financial sector profits).
Until a few months ago, it seemed that anyone who could fog up a mirror could get a mortgage. Now, with a credit crisis roiling the industry, some consumers might think they have a better chance winning the lottery than finding a home loan.
Euro zone private sector growth cooled in August as factory order growth hit its weakest since late 2005 and a credit squeeze in financial markets bruised service sector confidence, key data showed on Friday.
Global financial turmoil prompted the Bank of Japan to hold rates on Thursday and warn that the tremors would take time to settle, and the European Central Bank was inundated with demand at a new money market tender.
Stoked by positive developments on the credit and mortgage front, stocks are building on yesterday's gains and look ready to spring higher on the open.
The markets have their own lexicon and volatile markets generate their own chapter of colorful metaphors. This last week we have been treated to exhortations not to catch falling knives, falling pianos or any other objects which would cause severe pain if diverted from their gravity-bound course.
The Bank of Japan left its key policy rate unchanged for the sixth month running on Thursday, as expected in the wake of a global markets shake-out, with the focus now on how long it will delay its next hike.
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I promised myself that I would not blog while on my final summer vacation, but anyone with a BlackBerry knows, there's no such thing as vacation anymore. Earlier this week I got an email from a realtor I know in a mid-sized market in the Southeast (he asked that I not identify him or his city). The market is still doing pretty well, despite the slowdown in housing nationally because it has a strong local economy that is in a growth spurt.
A global credit squeeze has most economists convinced the Federal Reserve will come to the rescue and cut interest rates next month, a Reuters poll showed on Wednesday.
Wall Street prepares for lift off on the opening amid calmer credit markets, higher world stock markets and some merger news. European stock markets are comfortably higher, and Asia closed higher though Japan stocks were flat on the rising yen.
The Bank of England lent Barclays 314 million pounds ($622 million) at its standing facility, which can be used to square accounts between banks, the Wall Street Journal reported on its online edition on Wednesday, citing sources familiar with the situation.
China is likely to keep tightening monetary policy over the rest of 2007, but some economists believe the central bank will slow the tempo of interest rate increases as the outlook for exports darkens and inflation prospects improve.
Something important happened in the stock market today--nothing. For the first time in almost a month, stocks were not buffeted by anxieties about credit issues, or by volatility in the bond market, or by extremes in volatility, or even by attempts to sell off financial stocks on any rally.
Recent market turmoil only warrants a change in interest rates by the U.S. central bank if it hits the outlook for inflation or growth, Federal Reserve Bank of Richmond President Jeffrey Lacker said on Tuesday, noting that price pressures remain a worry.
Senate Finance Committee Chairman Christopher Dodd told CNBC he asked the Bush administration to lift the portfolio caps on housing finance giants Fannie Mae and Freddie Mac, but Treasury Secretary Henry Paulson expressed reluctance to do so.
The European Central Bank on Tuesday allotted 275 billion euros ($370.3 billion) in 7-day refinancing operations, at an average interest rate of 4.09%.
Stock traders will be looking over their shoulders at the credit markets as a furious flight to quality into Treasuries keeps the pressure on stocks prices. For now, stock futures are higher and look set for a firmer opening.
The People's Bank of China said on Tuesday it would raise its deposit rates by 27 basis points as of Wednesday "to stabilise inflation expectations."
A global credit crunch pushed German investor morale to its lowest level in eight months in August, raising pressure on the European Central Bank (ECB) to keep interest rates on hold for the time being.