18 Sep, 2013 (7:03AM IST)
Sep 17, 2013, (9:33pm EDT)
Welcome back to the B-day in world markets today!
The Bernanke Day.
The Bull-Killer, Helicopter Ben’s day (*hehe*)
(Now you know why I am such a big fan of Ben Bernanke 🙂)
As everyone in the financial world knows, the U.S. Federal Reserve will be concluding its two-day meeting later today and declare its short term monetary policy. After that, the Fed chief Ben Bernanke will hold a press conference ( 2.30 PM EDT) and markets will be holding their collective breath to know what is his agenda/ timetable about the quantitative easing program’s future.
It has now been accepted that the Fed will start tapering its QE3 (or bond-buying program also known as stimulus) from this month. Going by equity markets’ reaction (positive and range bound) it looks like they are still hopeful of winning the battle with a minor tapering, not something on a bigger scale. (Reaction? Looks more like pretention to me *hehe*).
The fact is, all those gold old days of easing are gone, finished, ended. Pretend or accept, easing junkies have well and truly lost the battle and the war to Bernanke. (cheers 🙂)
So, you can go back to sleep or take a trip to Mars, markets will come alive only at 2 PM EDT today when the Fed will release a statement about its monetary policy. After that, it’s going to be crazy action in markets either way.
Till then, world markets will trade in small range like previous few sessions.
So good luck, don’t get bored, try to have fun and enjoy a slow moving session in markets today!
See you later.