Stocks Fall on Stimulus Reactions; Economists Foresee Consumer Spending Rise; Yen Ascends on Official’s Comments
Stocks Fall on Stimulus Reactions (Bloomberg)
Stocks fell today, due mainly to investors weighed corporate deals alongside how the central banks’ stimulus efforts have been performing. “Some minor pullback should be expected after the steady gains we’ve achieved,” Eric Teal, chief investment officer at First Citizens BancShares Inc. in Raleigh, North Carolina, said. “I don’t think that we’re going to see any immediate tapering off of monetary policy, though we can expect from hawkish members or others outside the FOMC questioning the policy, which might lead to market volatility.”
Economists Foresee Consumer Spending Rise (CNBC)
According to economists, while government spending is likely to fall at a faster pace this year, consumer spending will maintain strong growth during that time. “Home prices are going up, and with also the improvement in the unemployment rate, people will be more willing to buy,” said Nayantara Hensel, chair of the NABE survey and a business professor at National Defense University.
Yen Ascends on Official’s Comments (Reuters)
Clawing its way up from a four and a half-year low against the dollar, the yen rose today after Japan’s economy minister, Akira Amari, noted that the yen had weakened enough that further declines could harm the Japanese economy. “What is remarkable about today’s price action is that dollar/yen refused to buckle despite Mr. Amari’s attempts to talk it down, indicating the strength of the momentum in the pair,” said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York. “Still, dollar/yen is clearly overbought and is due some pause and correction in the near future.”