S&P “..yesterday’s dragonfly doji is not bullish..” Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.


Fed cuts, splits and misses
Shaves 25 basis points to 1.75 to 2.00 per cent target

At much anticipated FOMC rate-setting meeting members of the

committee decided to cut the target Fed Funds rate by one quarter of a per cent so that their band now stands between 1.75 and 2.00 per cent, the minimum market participants had expected. The trouble is, a liquidity crunch this week has meant that this rate has already traded at 2.3 per cent and that the central bank was forced to offer shovel-fulls of cash to temper the overnight repo rate. In his statement chairman Powell said, ‘’this is a time of difficult judgements, as you can see, disparate perspectives. I really do think that’s nothing but healthy’’.

Once again, at today’s rate-setting meeting the Bank of Japan has agreed to do nothing, and just keep hoping things will improve; this modus operandi is widespread among developed market politicians. More worrying is that today a Tokyo district court has decided that the only 3 executives of the Tokyo Electric Power Co who have been charged over 2011’s Fukushima nuclear power plant disaster are not guilty. Leaking radioactive water and waste are still a big issue for the nation.

Financial Markets and Political Commentary


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