Though the major stocks showed gains earlier in the day, these gains began reversing themselves once global stimulus programs again garnered more uncertainty.
As of 12 p.m.:
|DIJA: -0.43% to 15056.88||S&P 500: -0.47% to 1618.52||NASDAQ: -0.58% to 3417.07|
|Gold: +0.4% to 75.74||Oil: +0.77% to 22.28||U.S. 10-Year: -0.36% to 21.87|
Here are three stories helping drive the markets Wednesday afternoon:
1. Anxious Investors Send Markets South: When a central bank just says “no,” investors run scared and sell stocks.
Trouble was already brewing ahead of Tuesday’s opening bell after Bank of Japan’s unwillingness to initiate any efforts to stabilize volatility of Japanese Government Bonds resulted in a surge in the ten-year U.S. Treasury yield to 2.26 percent. The jump in the ten-year Treasury yield scared investors who have been dreading life without quantitative easing… (Read more.)
2. Are Rising Interest Rates Hitting the Housing Market? The housing recovery is receiving more attention these days as low interest rates induced by the Federal Reserve begin to rise. While this will lower affordability and slow refinancing activity, mortgage applications managed to break their four-week losing streak.
According to the Mortgage Bankers Association’s latest report for the week ending June 7, loan application volume increased 5 percent on a seasonally adjusted basis from one week earlier. That is the first gain in a month and comes after an 11.5 percent plunge in the previous week. The figures include both refinancing and home purchase demand, and cover over 75 percent of all domestic retail residential mortgage applications… (Read more.)
3. Is Oil Floating On Positive Economic News? “The year 2013 has so far been characterized by slowing momentum in the world economy,” commented OPEC in its June 2013 Oil Market Report. “This has been due to lower growth not only in the developed countries but also in some emerging economies. As a result, the forecast for global oil demand growth in 1H13 has been revised down from initial projections, as the contraction in OECD demand was larger than expected and the pace of growth in the non-OECD has slowed.”
In many ways, OPEC — the Organization for Petroleum Exporting Countries — sets the tone of the global petroleum market… (Read more.)