Futures Market News
Equities gain ahead of monetary perfect storm
Nov 01, 2010 06:29 AM
The next two days will see, in some sense, a record-breaking number of central bank announcements. Beginning on November 3, the U.S. Federal Reserve, the Bank of England, the European Central Bank and the Bank of Japan will announce monetary policy decisions within about 36 hours of each other.
It's no surprise that the other major banks will follow the Fed, which is setting the tone for potentially massive quantitative easing in order to stimulate the somewhat stagnant U.S. economy. However, it's unclear to what degree stock markets and stock index futures have already compensated for the potential action.
"To a large degree, QE is already priced in, and there's probably, all other things being equal, limited positive effect to come forward from actual QE," Keith Hembre, a former Fed economist and the chief economist at U.S. Bancorp's FAF Advisors, told Bloomberg news. "To the extent that it tends to be a more timid program than what is expected, you could potentially have some disappointment."
Dow Jones Industrial Average index futures rose 28 points to 11,103 while S&P 500 index futures climbed 4.6 points to 1,184.70 at 8:16 a.m. EST.
Nasdaq 100 index futures gained 6.25 points to 2,129.25.
Nikkei 225 index futures lost 10 points to 9,150 at 8:03 a.m EST, while FTSE 100 index futures slipped 3 points to to 5,658.
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