By Agency reporter
Thursday, 11 Nov 2010
NEW YORK : United States stock index futures were little changed on Wednesday as investors chewed over the Federal Reserve‘s asset purchases, while a stronger dollar and weaker commodity prices weighed on world markets.
According to Reuters on Wednesday, equities had stalled this week after a two-month run-up in stock prices before the Fed‘s decision to purchase $600bn in Treasury debt in a bid to spur a sluggish economy. Since the end of August, the Standard & Poor 500 has advanced by 16 per cent.
With the Fed‘s move and midterm elections in the rearview mirror, investors have been left trying to assess the wider impact of the so-called quantitative easing, while revisiting old concerns about European debt and the economy.
The President of investment firm, LibertyView Capital Management, Mr. Rick Meckler, said investors were struggling to understand the Fed‘s action and even seeing it as a â€ÂÂshell game.â€ÂÂ
â€ÂÂYou have a government that is deeply in debt, using a governmental arm to buy back debt in the marketplace,†he added.
He said, â€ÂÂIt‘s something that is not easily understood by investors, particularly international investors.â€ÂÂ
European stocks fell slightly in morning trade, tracking losses in commodity prices that were sparked by weak Chinese imports data and strength in the US dollar. The combination has been a strong headwind for US stocks in the absence of other catalysts.
ÂÂÂ
Source: Punch