Daily Market Commentary for October 03, 2011
As of early afternoon trading, the S&P 500 was trading dangerously close to ten points below S&P 500 support test level registered at 1.119.46 in early August. (read more at Millennium-Traders.Com) http://www.millennium-traders.com/news/newscommentary.aspx
The FTSE 100 index fell 1% to end at 5,075.50. The FTSE had pared its losses after a better-than-expected reading on the U.S. manufacturing sector. The index closed Q3 down 13.7%, the biggest quarterly point and percentage loss since September 30, 2002. Chancellor of the Exchequer George Osborne said the Treasury was looking into ways of â€œcredit easingâ€ in an effort to boost the British economy. Resolution of the euro zoneâ€™s debt crisis â€œis the single biggest boost to confidence that could happen to the British economy this autumn,â€ he added.
Luxembourgâ€™s Jean-Claude Juncker, the leader of euro-zone finance ministers, reportedly said today that his group will not reach a decision today on whether or not to give Greece its next installment of aid. Greece said it will not be able to meet its deficit target this year as the nation is suffering a much deeper-than-projected recession. The Finance Ministry said the Greece economy is now expected to contract 5.5% in 2011 compared to the 3.8% contraction projected in June. Worries over a possible sovereign debt default in Europe could avalanche into major losses among banks and a sharp contraction in lending.
For the month of September, the Institute for Supply Management's manufacturing index climbed slightly, rising to 51.6% from a 50.6% reading during August. New orders reading held at 49.6%, production rose 2.6 points to 51.2% and employment rose 2 points to 53.8%. Though the ISM gauge has yet to fall below to the 50% indicating expansion since the U.S. officially emerged from recession, it is nonetheless far below the 61.4% peak of 2011 hit during February. Globally, the readings point to slowing as well as deteriorating activity in some areas. Australia has fallen to 42.3, the worst since July 2009. Brazil remains in negative territory for the fourth consecutive month with a 45.5 reading. Employment subcomponent rose 2 points to 53.8% and new orders subcomponent was unchanged at 49.6%, while production rose 2.6 points to 51.2%.
According to Jay Carney, White House spokesman during a press briefing today, President Barack Obama confirmed he would sign a bill that contains only some of the jobs-creation provisions that he recommended. Obama has been waiting on Congressional action on his new legislation, since earlier this month.
During the month of August, the Commerce Department reported outlays for U.S. construction projects rose 1.4% on public and private spending gains and increased 0.9% from previous year. For the month, construction spending data was reported as highly volatile. Spending on public construction rose 3.1% in August; educational construction up 4.3%; spending on private construction rose 0.4%; residential construction spending rose 0.7% and non-residential spending rose by 0.2%.
Bank of America (NYSE: BAC), which is the nation's largest bank by assets, continues to suffer issues with its online banking website today - a follow through from problems that plagued the company on Friday. A spokeswoman for BofA was not immediately available for comment today however said on Friday that the problems were not a result of hacking. She additionally said the website trouble was not related to a decision last week to charge customers $5 a month for debit-card purchases. Numerous customers who have tried to access either the bank's homepage or their personal accounts page are experiencing slowness and trouble accessing them. "We're sorry, but some of our pages are temporarily unavailable," A message on the bank's homepage said. "Thanks for your patience."
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