Nov 21, 2012
The market is up 2. SFE Futures were up 2 this morning.
Dow Jones down 7. The Dow was down 95 at worst and up 13 at best. US markets traded higher early in the session with Building Permits and Housing Starts coming in better than expected suggesting the US housing market is recovering, following on from solid Existing home sales numbers on Monday. Fed Chairman Ben Bernanke spoke at an economic function in New York. He warned, that a failure to avoid the so-called fiscal cliff would pose a “substantial threat” to the current moderate growth credentials of the US economy because the Fed alone did not have the firepower required to offset this downside risk. It was this last comment that saw the market suddenly fall midday — the message to Congress is that the Fed is out of weapons and if the economy falls off the fiscal cliff they won’t be able to support it. Best sectors — Financials (+0.5%), Consumer Services (+0.5%) and Consumer Goods (+0.4%), Health Care (+0.6%). Worst sectors — Technology (-0.7%) and Energy (-0.4%). The Stoxx Europe 600 index was up 0.3% with Basic Materials (+0.8%), Industrials (+0.7%), Consumer Goods (+0.5%) and Consumer Services (+0.5%). Metals Mixed — Copper down 1.19% Nickel up 0.83%, Aluminium down 0.43%, Lead down 1.23%.