Budget Impasse Negotiations Back Burden Wall St. Most of the stocks on Wall Street have turned lower on Wednesday as trading the U.S. budget impasse in negotiations. The failure of politicians to produce a new compromise risk provoking a fiscal gap, which could sink the U.S. economy back into recession next year. The Dow Jones Industrial Average turned down more than 20 points, after successfully recorded 3-digit rally in the previous session, with the largest decrease shown Alcoa shares. Similar movement was also seen in the S & P 500 and Nasdaq Composite, each of which had lost 0.3% and 0.2%.
The White House again rejected a proposal by the Chairman of the U.S. House of Representatives, John Boehner, who requires an extension of Bush era tax cuts programs for individuals earning up to $ 1 million. President Obama has even said he would veto the Act would, if enacted. From the fundamental side, the construction of new homes in the U.S. fell by 3% to 861,000 units in November as the impact of the blow of
Hurricane Sandy at the end of October. Meanwhile, building permits, which reflect demand in the future, recorded an increase of 3.6% to 899,000 units. While some recent earnings report released better than expected. Manufacturer of computer hardware, Oracle, posted a profit above expectations. That drives at least 7 brokerage raised its price target for shares of Oracle. FedEx also successfully confront analysts' forecasts after announcing earnings decline was not as bad as expected.
German data Topang Euro Optimism
The euro managed to touch the 8 ½-month peak versus the U.S. Dollar after the release of German business confidence data that exceeds expectations and rising optimism over Greek debt settlement. Ifo data showed German business sentiment rose for the second month in a row in December, supporting the expectation of recovery in Europe's largest economy after a little depressed in recent months. Speculators continued to trim short positions in the euro easing concerns over the region's debt crisis.
"Fundamental factors have pushed euro traded higher throughout the market," said Vassili Serebriakov, currency analyst at BNP Paribas in New York. "We can see the solid data from Germany, while the resolution of the Greek problem also seems to run smoothly." Most analysts believe if the Euro will be able to extend its dominance of the U.S. dollar year-end as rising demand from companies and long-term investors.
The White House again rejected a proposal by the Chairman of the U.S. House of Representatives, John Boehner, who requires an extension of Bush era tax cuts programs for individuals earning up to $ 1 million. President Obama has even said he would veto the Act would, if enacted. From the fundamental side, the construction of new homes in the U.S. fell by 3% to 861,000 units in November as the impact of the blow of
Hurricane Sandy at the end of October. Meanwhile, building permits, which reflect demand in the future, recorded an increase of 3.6% to 899,000 units. While some recent earnings report released better than expected. Manufacturer of computer hardware, Oracle, posted a profit above expectations. That drives at least 7 brokerage raised its price target for shares of Oracle. FedEx also successfully confront analysts' forecasts after announcing earnings decline was not as bad as expected.
German data Topang Euro Optimism
The euro managed to touch the 8 ½-month peak versus the U.S. Dollar after the release of German business confidence data that exceeds expectations and rising optimism over Greek debt settlement. Ifo data showed German business sentiment rose for the second month in a row in December, supporting the expectation of recovery in Europe's largest economy after a little depressed in recent months. Speculators continued to trim short positions in the euro easing concerns over the region's debt crisis.
"Fundamental factors have pushed euro traded higher throughout the market," said Vassili Serebriakov, currency analyst at BNP Paribas in New York. "We can see the solid data from Germany, while the resolution of the Greek problem also seems to run smoothly." Most analysts believe if the Euro will be able to extend its dominance of the U.S. dollar year-end as rising demand from companies and long-term investors.
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