Bush applying pressure on Congress
In the latest development on the US Treasury's $700 billion bail out, it appeared yesterday that the Bush administration is increasing private pressure on Congress to approve some form of rescue program.
It was reported that Treasury Secretary Henry Paulson spent much of yesterday meeting with, and contacting lawmakers to persuade them on the benefits of the package to mainstream America and not just to Wall Street banks.
The news was taken as a positive sign by markets that the plan will be salvaged and that there could be an approval before the end of the week. This allowed US equities to record their biggest one day gain in six years after the S&P 500 index increased by 4.7% and the Dow posted gains of 5.2%.
Asian stocks also benefited from the news to pare some of the previous days losses with the Nikkei finishing 1.2% higher.
Admittedly, the release of economic data is having next to no impact on market movements at the moment however yesterdays releases did paint a slightly mixed picture.
In the UK, consumer confidence stayed close to a record low in September with a reading of minus 32 and GDP was confirmed as flat for the second quarter of this year. Euro-Zone inflation eased to 3.6% YoY for September. While in the US consumer confidence unexpected rose in September with the index increasing to 59.8. Other US releases showed that home prices fell and business activity slowed.
The growing expectations that the Bank Rescue Plan will be agreed in the coming days, resulted in the dollar trading near a two week high against the euro.
Oil jumped $4 a barrel yesterday on the back of the strong equity rally, which also supported the US dollar strength.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
It was reported that Treasury Secretary Henry Paulson spent much of yesterday meeting with, and contacting lawmakers to persuade them on the benefits of the package to mainstream America and not just to Wall Street banks.
The news was taken as a positive sign by markets that the plan will be salvaged and that there could be an approval before the end of the week. This allowed US equities to record their biggest one day gain in six years after the S&P 500 index increased by 4.7% and the Dow posted gains of 5.2%.
Asian stocks also benefited from the news to pare some of the previous days losses with the Nikkei finishing 1.2% higher.
Admittedly, the release of economic data is having next to no impact on market movements at the moment however yesterdays releases did paint a slightly mixed picture.
In the UK, consumer confidence stayed close to a record low in September with a reading of minus 32 and GDP was confirmed as flat for the second quarter of this year. Euro-Zone inflation eased to 3.6% YoY for September. While in the US consumer confidence unexpected rose in September with the index increasing to 59.8. Other US releases showed that home prices fell and business activity slowed.
The growing expectations that the Bank Rescue Plan will be agreed in the coming days, resulted in the dollar trading near a two week high against the euro.
Oil jumped $4 a barrel yesterday on the back of the strong equity rally, which also supported the US dollar strength.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: credit crunch, global recession, Oil, oil-prices
posted by Drs Search @ 9:00 AM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home