Fiscal Cliff fears and Middle East tensions spark market sell off $AUDUSD
- Published: 15 November 2012
- US stocks weakened into the close overnight as investors continue to fret about the impending Fiscal Cliff and the ramifications of potentially another recession if US politicians fail come to an agreement in regards to budgetary reforms. Adding to the market negativity was a military strike by Israel that killed a senior Hamas leader
- The US Federal Reserve Minutes indicated they will likely initiate another bond buying program in the new year once Operation Twist expires
- US Retail Sales fell in October for the first time in four months due to large storms
- Financial stocks were weaker overnight along with industrials. Whist the CBOE VIX jumped to above 17.00 as investors take a more cautious approach
- Cisco rallied 6.3% to $17.66 per share after the world's biggest manufacturer of computer networking equipment reported earnings that beat analysts' expectations
- Facebook surged 12.59% after another block of stock came out of lock up post IPO
- DOW -1.45%, S&P500 -1.39% and NASDAQ -1.29%
- USD was stronger overnight with the USDJPY falling heavily and both Gold and Crude rallied on Federal Reserve stimulus expectations and Mid East tensions respectively
