Market rallies on QE3 hopes

  • US Equities roared, notwithstanding more weak economic data points, as speculation swirled across global capital markets that the Federal Reserve will stimulate growth again through fresh asset purchases.
  • Yesterday, St. Louis Fed President James Bullard, who was against QE3 just weeks ago said “If we did do QE3, than I’ve advocated that we do it on a meeting-by- meeting basis.”
  • Treasuries received a whopping bid in late trade following a 5.8 magnitude earthquake that struck the East coast, causing hundreds of flight delays, but no key damage.
  • Energy was the leader as September Crude rose above $86/bbl, sending Oil & Gas Producers – Anadarko ($68.82, +5.2%), Chevron ($97.33, +4.3%), ConocoPhillips ($65.71, +3.8%), Exxon Mobil ($73.66, +5.00%) – higher.
  • Materials were also well bid, albeit North American Gold Producers – Barrick Gold ($50.69, -2.6%), Newmont Mining ($61.25, -2.6%) – slipped as investors sold rallying precious metals.
  • Apple ($373.60, +4.8%) rallied as sources suggested the company is targeting a launch for the next generation iPhone later this September. Sprint ($3.59, +10.1%)
  • Gold fell the most since July last year retreating from USD $1900oz
  • Dow Jones +2.97% S&P500 +3.43% NASDAQ +4.29%
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