All ten of the S&P500 industry groups also showed gains, led by basic materials (+2.7%), industrials (+2.4%), technology (+2.4%), financials (+2.2%), oil and gas (+2.0%), consumer services (+2.0%), consumer goods (+1.7%), health care (+1.7%), telecommunications (+1.2%), and utilities (+1.2%).
Draghi’s OMT plan included unlimited purchasings of shorter-dated sovereigns of those nations in the eurozone that had requested aid and implemented austerity programs with regular monitoring required. The central bank’s holdings will command equal rank with private bondholders. As he said in the press conference, the program will “address severe distortions in government and bond markets which originate from, in part, unfounded fears on the part of investors of the reversibility of the euro.”
Markets have rallied to multi-year highs on the wings of central bank easing hopes. Policymakers may be dovish as well, recognizing full well the impact of such monetary actions on voters’ assets. Both China and the ECB have made their moves, leaving room for Bernanke & Co to take action next week as well. Markets have grown increasingly uncertain that another round of quantitative easing will be undertaken at this month’s policy-setting meeting, despite Chairman Bernanke’s Jackson Hole testimony of the benefits of such measures in the past. However, behind-the-door negotiations for the Draghi plan certainly included US central bank influence, and leaving an ECB scheme that would drive the euro sharply higher, cutting further into the region’s export business, especially Germany’s, seems a brittle branch to have climbed without parallel assurances from US central bankers as well.
发表于 2012-9-7 10:15
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