Sharechat Logo

While you were sleeping It's about the economy, stupid

Tuesday 12th February 2013

Text too small?

All eyes are on President Barack Obama's annual State of the Union address, the first in his second term in office, Tuesday evening.

In afternoon trading in New York, the Dow Jones Industrial Average and the Nasdaq Composite Index both dipped 0.20 percent, while the Standard & Poor's 500 Index slipped 0.09 percent. The Dow fell from the highest close in 12 years on Friday, while the S&P 500 slid from a five-year high.

US Treasuries were also steady, with the 10-year bond yield last up 1 basis point to 1.96 percent.

Obama should focus on the economy in his address, according to 35 percent of American voters in a nationwide survey by Quinnipiac University released today.

Another 20 percent listed the federal deficit as the top priority, with 15 percent citing gun policy and 12 percent listing health care. More than half, 53 percent, said the US economy is in a recession.

"Voters trust President Obama more than Congressional Republicans on the economy and most other issues, but they are more closely divided on who would do a better job on the deficit and on gun-control," Peter Brown, assistant director of the Quinnipiac University Polling Institute, said in a statement.

"And by 48 to 39 percent, voters trust Republicans in Congress more than Obama to cut federal spending," Brown noted.

US Treasury debt auctions this week should meet solid demand. The government is set to sell US$32 billion of three-year notes on Tuesday, US$24 billion in 10-year debt on Wednesday and US$16 billion in 30-year bonds on Thursday.

"I expect us to back up a bit going into the auctions," Brian Edmonds, head of interest rates at Cantor Fitzgerald in New York, one of 21 primary dealers that trade with the Federal Reserve, told Bloomberg News. "These are fairly attractive yields. Threes should go great. Tens and bonds will go fine."

Shares of Google fell, last down 1 percent to US$777.86, after the company said Chairman Eric Schmidt is planning to sell as many as 3.2 million shares, or about 42 percent of his stake in the company.

In Europe, the Stoxx 600 Index ended the day with a 0.6 percent decline from the previous close. Germany's DAX also fell, closing 0.2 percent weaker. The UK's FTSE 100 rose 0.2 percent and France's CAC 40 advanced nearly 0.1 percent.

Data due on Thursday might show the worst drop in the euro zone economy since the first quarter of 2009. Gross domestic product shrank 0.4 percent in the fourth quarter, according to the median of 45 estimates gathered by Bloomberg News.

The Group of Seven may release a statement to reaffirm support for "market-determined" currency rates around the time G20 finance ministers and central bankers meet in Moscow on Friday and Saturday, Reuters reported.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Steel & Tube Fy20 Trading Update
Further Contract Win Strengthens Scott Technology’s Position In Mining Sector
China’s Assertiveness Is Becoming a Problem for Its Friends, Too
New Talisman - Chairman’s Address to AGM 2020 August 6, 2020
T&G reports its 2020 Interim Results
Gold price hits $2,000 for first time on Covid
TruScreen strengthens its market presence in central and eastern Europe
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020

IRG See IRG research reports