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• Tuesday, 22 May 2012

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• Wall St Boosted by Fed Rates Forecast - 26 January 2012

Following a slow start on Wall Street on Wednesday, US stocks rebounded on news that the Federal Reserve intends to keep interest rates low through to late 2014 – an adjustment of its previous indication that rates would be kept low through to mid-2013. The announcement came as the Fed's two-day policy meeting drew to a close, and by the end of the day the Dow Jones industrial average had gained 83 points, recovering from its loss of 95 points in the morning trading session. The Standard & Poor's 500 gained 11 points, after having lost 7 points earlier. The Nasdaq composite added 32 points, with Apple and software company CA Inc reporting better than expected earnings and boosting the tech-favored index.

• European Debt Crisis Could Impact U.S. - 15 December 2011

In a meeting on Capitol Hill on Wednesday, Federal Reserve chairman Ben Bernanke reportedly revealed to Republican senators that he is concerned about the unresolved European debt problem, noting that a collapse of European markets would be detrimental to the United States. Despite the so-called 'fiscal plan' agreed to by Eurozone members last week, Bernanke is not the only influential figure voicing his concern over the ability of European authorities to put their house in order. Britain is not in agreement with the plan, a key point of which is for Eurozone members to contribute an additional €200 billion to the IMF. A further indication that enthusiasm for the fiscal plan is waning, is the fact that the euro fell to below the $1.30 mark on Wednesday, its lowest point since mid-January this year. The reasons for the rise and fall of the euro are many, and theories and opinions abound, but the fact remains that the national debts of some euro members, most notably Greece and Ireland, have brought the currency to the brink of collapse, and leaders are desperate for a solution.

• Stocks Rally on Fed's Resolve to Aid Economic Recovery - 3 November 2011

The first two days of the week saw Wall Street markets declining significantly, with a noteworthy recovery occurring on Wednesday afternoon. The latest policy statement from the Federal Reserve, backed up by positive remarks from Fed Chairman Ben Bernanke, indicate a commitment from authorities to continue to assist the US economy in its recovery efforts. The Dow Jones industrial average climbed by 178 points, with the S&P 500 rising by 20 points, and the Nasdaq composite surging 33 points, being 1.5 percent, 1.6 percent and 1.3 percent respectively.

• Markets Dip on Beige Book Blues - 20 October 2011

Wall Street responded negatively yesterday in response to what many view as a pessimistic report from the Federal Reserve on regional economic activity. Others may be more inclined to view the report as a cold dose of reality, as the US economy continues to struggle to recover. The Dow Jones Industrial Average closed down 72 points, with the S&P 500 shedding 15 points and the Nasdaq dropping 53 points, being 0.6 percent, 1.3 percent, and 2 percent respectively.

• US & Global Economies Still Under Spotlight - 3 October 2011

As Wall Street enters the final quarter of 2011, investors need to come to grips with some of the fears that drove stocks down on Friday, ending what has been declared as the worst quarter since the beginning of the financial crisis. The Dow Jones industrial average dropped 240 points to close at 10,913, the S&P 500 fell by 30 points to close at 1,131, while the Nasdaq Composite slid 65 points to close at 2,415 – recording declines of 2.1 percent, 2.5 percent and 2.6 percent respectively. For the Dow it was the worst quarter since the first three months of 2009, while for the S&P 500 and Nasdaq it has been the worst since the final quarter of 2008. While investors are, of course, hopeful for improvements moving ahead, indications are that the problems plaguing the US economy, as well as the global economy, are likely to continue unabated for some time.

• Dodd-Frank, Operation Twist & Wall Street - 22 September 2011

It's been a year since the Dodd-Frank bill was signed into law, putting a whole new perspective on the term "too big to fail" and putting the brakes on taxpayer bailouts for failing financial institutions. With the downgrading of the credit ratings of three major banks – Bank of America, Wells Fargo and Citigroup – on Wednesday, it appears that the time has come to test the effectiveness of the Dodd-Frank bill. Commenting on the downgrade of Wells Fargo's stock, Moody's noted that, because the risks of contagion have become less acute, allowing a financially troubled large bank to fail is more likely to happen now than would have been the case during the financial crisis. This is seen as a vindication of the stance lawmakers took in passing the bill. Instead of propping up failing financial institutions with taxpayers' money, the federal government has the option of unwinding these banks in a controlled and orderly manner. Each of the three banks in question is required to present a plan by July next year outlining steps for distribution of assets in the event of becoming insolvent.

• European Debt Crisis Impacts Wall Street - 12 September 2011

Rumors that Greece is likely to default on its enormous debt caused ripples of apprehension around the financial world, resulting in investors selling off stocks, and US markets dropping sharply on Friday. Speculation is rife that the country may very well not get the next installment of bailout funds allocated by the European Union, the European Central Bank and the International Monetary Fund – at least until the so-called troika is assured that austerity measures in Greece are going to achieve what they have set out to do, reduce the government’s debt. All seventeen nations using the euro as currency – the Eurozone – need to approve of further bailout funds being issued to Greece. While all eyes are on Greece at present, Portugal, Ireland, Spain and Italy are also struggling, and analysts have expressed doubts that the European Financial Stability Facility (EFSF) will be able to pull all these ailing economies through the current financial crisis.