Thursday, March 10, 2005
March: Higher IRs, SP500 peaks
Greenspan's conundrum speech in beginning of Feb started a spike in 10 yr IRs
The rise was further fuelled by strong payroll numbers (262k; strongest since October)
S&P peaked on March 7, closing at 1225 and then fell to 1205 on March 9 as IRs leaped upwards from 4.30 to 4.55 on March 8-9
Increased speculation of Asian central banks diversifying, the Japanese new year and the impact of higher oil prises all contributed to higher IRs and fears in the stock market
On Wednesday March 8, the beige book mentioned it being easier to pass on high oil input prices to output prices to clients, while also being more difficult hire qualified people. This exacerbated the IR move and catalysed further falls in S&P500 (to the 1205 level, breaching the 1210-1212 resistance)
The rise was further fuelled by strong payroll numbers (262k; strongest since October)
S&P peaked on March 7, closing at 1225 and then fell to 1205 on March 9 as IRs leaped upwards from 4.30 to 4.55 on March 8-9
Increased speculation of Asian central banks diversifying, the Japanese new year and the impact of higher oil prises all contributed to higher IRs and fears in the stock market
On Wednesday March 8, the beige book mentioned it being easier to pass on high oil input prices to output prices to clients, while also being more difficult hire qualified people. This exacerbated the IR move and catalysed further falls in S&P500 (to the 1205 level, breaching the 1210-1212 resistance)
# posted by Sprezzaturian @ 2:57 PM 
