Wednesday, 13 November 2013

TAPERING TALKS RETURN

Talk of tapering is back on the table and US investors are again bracing for a pullback of the Federal Reserve’s monetary stimulus.
Declining equities in Asia and Europe appear ready to spill over to the US. US stock market futures slipped ahead of the opening bell in New York, with the Dow Jones Industrial Average off 0.21 per cent to 15750.67 and the S&P 500 down 0.24 per cent to 1767.69.
Discussion of when the US central bank would begin to taper its quantitative easing programme quietened down following last month’s government shutdown, but comments from Fed officials on Tuesday sparked speculation that bond-buying could still slow before the end of the year.
Investors are expected to be cautious on Wednesday ahead of Janet Yellen’s confirmation hearing on Thursday. Ms Yellen, who President Barack Obama has tapped to be the next Fed chairman, will have the stage to offer her views on where the central bank’s monetary policy should go from here.
Wednesday’s economic calendar is otherwise light, with the monthly Federal budget statement this afternoon being the only highlight.
On the corporate side, Macy’s is set to release its earnings before the market opens.


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