Markets today by and large treaded water awaiting the FED and ECB policy announcements later this week. While we most likely won’t see any stimulus from the FED this week investors will be hanging on every word to seek future guidance on policy. The ECB however could put many traders minds at ease if there is another round of LTRO announced.
At this point markets need to see action not just words so that we can keep the current market trajectory going. If we don’t see anything concrete or at least explaining how policy will operate then markets will surely reverse later this week.
Both Spanish and Italian 10-Year Bond yields have pulled back from their respective highs, but clearly something has to be done to stop those yields from climbing higher and ultimately bring them back down from current levels.
Today the DOW (INDU) ended rather unchanged down 0.02% at 2.65 points. The S&P 500 (SPX) ended slightly more down loosing 0.05% at 0.67 points. And the tech heavy Nasdaq (COMP) lost 0.41% at 12.25 points.
Oil lost 49 cents to close at $89.64 a barrel.
Gold gained $1.70 to close at $1,619.70 an ounce.
The US 10-Year Note fell pushing the yield up to 1.50%.