Microsoft, Caterpillar and IBM were the big losers when stocks were sold off late in the session in New York last night. Retailers were the bright spot when Home Depot raised its outlook. Cisco which presented results after the closing bell, rose 6,8 percent after reporting revenues and earnings that beat analysts’ estimates. Home Depot, a home retail supplier, hit share prices levels not seen since April 2000, confirming greater optimism in the housing sector.
Concerns about the looming “fiscal cliff” kept investor activity subdued as lawmakers returned to Washington after November 6 elections. The markets are grappling with how a divided Congress will deal with a series of mandated tax hikes and spending cuts that will come into effect next year and threaten to take the largest world economy back into recession. Lawmakers were met by news that the US budget deficit continue to raise. The US Treasury said yesterday that October deficit was USD 120 billion larger than economists’ forecasts for a $ 114 million gap and up from $ 98 billion in October 2011. Growth in expenditures far outpaced rising receipts.
Asian shares and the Euro steadied on Wednesday morning, but lacked impetus for a decisive rebound threatened by the “fiscal cliff” and a delay in releasing more aid to debt-stricken Greece. The Euro/USD rebound from 1.260 on Tuesday and trades at 1.2720. USD/JPY stabilized around 79,50. MSCI’s broadest index of Asia Pacific shares outside Japan rose 0,3 percent after falling to a seven-week low in the previous session. Tokyo’s Nikkei edged up 0,1 percent after seven straight days in the red.
Follow up with or daily market reviews on http://www.uwcfx.com/en/market-reviews.html