That’s two days in a row the market has fallen. The Post-QE afterglow is clearly wearing off.
But first, the scoreboard:
S&P 500: -10.5
And now, the top stories
- Things started in a clear risk-off mode in Asia, following weak US trading on Monday, and word of strict new capital controls out of China. Markets weren’t down dramatically, but the decline was widespread. And after yesterday’s big surge in the precious metals, the rally continued overnight, with gold blasting above $1400.
- There wasn’t all that much news out of Europe, except for the fact that Irish spreads continue to blow out.
- In the US, things were actually pointing upwards in the early going, and stocks did open higher, though they were weak. Actual macro news was practically non-existent, however. One notable earnings report came from Dean Foods, which warned that commodity prices were crushing margins, as the company could not pass on raw-goods costs.
- The big action, really, was on the macro front. Gold and silver surged in the morning, with silver coming really close to $30/oz. Then in the early afternoon, they abruptly reversed course. Gold was at one point above $1420, and it fell to $1386. The dollar was strong all day (for the second day in a row, in fact).
- The agricultural commodities were more mixed. A USDA report on Chinese soybean demand kept soy prices up.
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