Monday, September 16, 2013
News Sunday evening that Larry Summers had "withdrawn" from consideration (wink wink) for the head of the Federal Reserve sent futures flying as traders want nothing more than a Fed head who might impose any form of hawkish monetary policy. Not that Summers is considered a hawk but compared to new front runner Janet Yellen he would be seen as someone more likely to work at the hawkish German Bundesbank. But with Summers now eliminated the easy money crowd was out in full force early. Technology stocks had a tough day however, and the NASDAQ ended down 0.1% while the S&P 500 gained 0.6%. Ten year Treasury rates likewise plummeted initially on Yellen moving to the front of the horse race, but eventually made their way back to 2.87%. The dollar sold off against major currencies.
In economic news:
- The New York Federal Reserve's September Empire State index fell to 6.29 from 8.24 in August. It was expected to tick up to 8.5.
- Industrial production rose 0.4% in August, in line with expectations
Crude oil fell 1.5% to $106.59, while gold rose 0.7% to $1317.80 and silver 1.3% to $22.01.
British stocks gained 0.6%, German stocks 1.2%, and French stocks 0.9%.
Japan's market was closed for a holiday, while China fell 0.2%.