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Global Mid-Day report: FOMC minutes, London close downward trigger

Modern-day meeting of the Federal Open Market ...

Modern-day meeting of the Federal Open Market Committee at the Eccles Building, Washington, D.C. (Photo credit: Wikipedia)

Equities and Commodities are likely to continue reacting sharply in US markets after the minutes from the June 19,20 meeting were released. The FOMC had shorn US growth projections to 2.3-2.5% in the long term at the meeting and though housing seems better off than the meeting review in April, the headlines are still that growth has become more modest than in Jan, Feb and March; Employment rose at a slower pace and more voting members agreed rates will remain lower till 2014.

New onboarding members Charles Evans and Eric Rosengren from Chicago and Boston have earlier in the week spoken of the need for aggressive action to aid the weak Economy and the minutes hhow that more realise that the policy measures are really not working. However the minutes stop short of promoting QE as they expect the problems to be transitory in the June meeting After all they do epect the benefits of monetary policy to be limited.

German markets closed positive but the FTSE hardly moved in the London closing at 5664.4 even as LSE’s growth ambitions included cross listing of the FTSE 100 stocks in Singapore on the GlobalQuotation Board and of select SGX index stocks in London facilitated by a third party. Levis’ and Burberry’s reported lower sales from the slowdown in Europe

The FOMC minutes and the continuing unrest in Europe in response to Rajoy’s new $24B  cuts in unemployment benefits among others mean the Dollar’s upward march and a sharper correction to the drift in commodities like Oil and Gold will continue. San Bernandino joins Stockton in filing a bankruptcy in California, in a late climax to the events starting in 2006 when Sales tax and property taxes started winding down

Dow has dropped more than 60 points since the minutes were released.

 

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