There’s a huge global meeting this weekend designed to defuse the global currency war, and arguably the fate of the US economy rests upon some kind of positive resolution. The market’s reaction: meh.But first, the scoreboard:
S&P 500: +1.87
And now, the top stories:
- Setting the tone for the day, overseas markets were pretty quiet overnight. There wasn’t much doing in either Japan or China, and since it’s Friday, and you’re itching to leave we won’t bore you going into too much detail. Gold did dive pretty hard in the early going continuing a trend.
- It was basically the same scene in Europe, although late in the day the French Senate did pass the controversial pension reforms that have been prompting riots on the streets of Paris.
- The big event of the morning was Tim Geithner’s letter to the G20 introducing the very controversial idea of current account surplus caps designed to prevent big exporters from persistently running surpluses. The Chinese, Germans, and Japanese are not amused by this resuscitation of an old Keynesian idea.
- And that was basically it. A firm called Clear Capital announced that housing is double dipping, but it didn’t have much effect.
- The bottom line: stocks were mixed, the dollar showed a little strength, and gold was a bit weak, though not wildly so. All eyes on the G20!