Wednesday Afternoon Cheat Sheet: 3 Stories That Moved Markets
The markets were mixed today on Wall Street. Traders digested a battery of economic news, but seem to have remained focused on earnings.
At the close: DJIA: -0.17%, S&P 500: +0.02%, NASDAQ: +0.22%.
Oil climbed 0.92 percent to $94.14 per barrel, while Gold fell 0.23 percent to $1,680.00 per ounce.
1) The global financial system is a complicated network of market participants that are constantly rewriting the rulebook in the wake of the recent economic crisis. However, the old wisdom that “if you don’t hold it, you don’t own it” is more evident today than ever before. This concept is not lost on the world’s second largest holder of gold reserves.
Earlier this week, Germany’s Handeslblatt newspaper claimed that the country’s Bundesbank developed a new strategy to bring home gold reserves… (Read more.)
2) Despite a rebound in financial markets since the depths of the credit crisis four years ago, economies around the world are still in dire need of growth.
According to the World Bank’s latest Global Economic Prospects report, the global economy remains fragile, as high-income countries continue to experience slow growth and volatility. As a result, the organization cut its forecast for global gross domestic product across the board… (Read more.)
3) The Consumer Price Index for All Urban Consumers was unchanged in December, according to the most recent report from the Bureau of Labor Statistics. Before seasonal adjustment, the all-items index is up 1.7 percent for the past 12 months.
The CPI-U is a convenient proxy for inflation, and given the most-recent reading, market participants can assume that the Federal Reserve’s easy-money policy hasn’t yet overheated the economy. Last month, the Fed indicated that it would continue buying assets in order to keep interest rates low as long as the inflation rate stayed below 2.5 percent… (Read more.)