News / USA

Markets Bounce Back on Wary Wall Street

Michael Pistillo (R) works with a fellow specialist on the floor of the New York Stock Exchange, August 9, 2011
Michael Pistillo (R) works with a fellow specialist on the floor of the New York Stock Exchange, August 9, 2011

World financial markets are calmer, with many stock indexes higher after Monday’s brutal global selloff. On Wall Street, the Dow Jones Industrial Average gained almost 2 percent in the morning. Many investors now are looking to see what happens at the U.S. Federal Reserve board’s meeting.

After the New York Stock Exchange opened on Tuesday morning, Peter Cardillo, the chief market economist for the Rockwell Global Capital investment firm, was guardedly optimistic.  

“The markets are trying to rally this morning.Obviously, we are going to have an anemic [weak] bounce until we hear from the Fed [Federal Reserve]. I think all eyes are pointing to the Fed’s communiqué this afternoon," said Cardillo. "Hopefully they will try to calm the markets.”

The policy-making committe of the Fed, the United States’ central bank, is holding a regular meeting Tuesday.

Countries with the highest possible AAA sovereign debt rating by all three major rating agencies, including Standard & Poor's:

  • Austria
  • Canada
  • Denmark
  • Finland
  • France
  • Germany
  • Luxembourg
  • Netherlands
  • Norway
  • Singapore
  • Sweden
  • Switzerland
  • United Kingdom
  • Countries rated by S&P one step below the top at AA+:

  • Belgium
  • New Zealand
  • United States
  • In tough economic times the Fed often tries to stimulate growth, and investors around the world sometimes base their market decisions on what the Fed does.

    Cardillo says the biggest task facing the Federal Reserve is convincing investors that the economy is not headed for a recession.

    “And also perhaps maybe hint at some further stimulus, perhaps taking away the interest on reserves and that would help them stimulate more loans and keep liquidity floating within the system… and we can get into some sort of consolidation process,” Cardillo added.

    Cardillo doubts the American economy is going into a recession, yet is certain that fear will continue to play a major role in the coming days in how global markets act.  

    “And you could see the fact that the price of gold continues to make new record highs, going up sharply over the past few days just equates with the fear factor," said Cardillo. "And that fear factor means that people have lost confidence in the lawmakers to address issues that could be negative for economic activity.”

    The rally on Wall Street Tuesday morning follows gains in some European markets. Most stock markets in Latin America also saw share prices rise. In Asia on Tuesday, major indexes fell by 2 percent or more, although many saw buying late in the day that cut some of the losses.

    You May Like

    In China, Mixed Signals on Ebola Controls

    How authorities are monitoring at-risk individuals remains unclear, including whether there are quarantines for Chinese health workers returning from West Africa More

    Video Women Voters Anxious Ahead of US Elections

    Analysts say if women are focused on national security, it could be bad news for Democrats More

    Solar's Future Looks Brighter

    New technology and dropping prices are contributing to a surge in solar power More

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Women Voters Anxious Ahead of US Electionsi
    X
    October 31, 2014 4:10 AM
    Public opinion polls show American voters are deeply dissatisfied with their government and anxious about threats from abroad. This is especially true for a key voting group both Republicans and Democrats are trying hard to win over: women. Analysts say if women are focused on national security, it could be bad news for Democrats, with majority control of the Senate at stake. VOA’s Cindy Saine looks at the crucial role women voters will play in deciding the elections.
    Video

    Video Women Voters Anxious Ahead of US Elections

    Public opinion polls show American voters are deeply dissatisfied with their government and anxious about threats from abroad. This is especially true for a key voting group both Republicans and Democrats are trying hard to win over: women. Analysts say if women are focused on national security, it could be bad news for Democrats, with majority control of the Senate at stake. VOA’s Cindy Saine looks at the crucial role women voters will play in deciding the elections.
    Video

    Video Victorious Secularists Face Challenge to Form Government in Tunisia

    Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
    Video

    Video Africa Tells its Story Through Fashion

    In Africa, Fashion Week is a riot of colors, shapes, patterns and fabrics - against the backdrop of its ongoing struggle between nature and its fast-growing urban edge. How do these ideas translate into needle and thread? VOA’s Anita Powell visited this year’s Mercedes Benz Fashion Week Africa in Johannesburg to find out.
    Video

    Video Smugglers Offer Cheap Passage From Turkey to Syria

    Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
    Video

    Video China Political Meeting Seeks to Improve Rule of Law

    China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
    Video

    Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

    European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
    Video

    Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

    Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.

    All About America

    AppleAndroid