- Several on FOMC said Fed should be ready to cut QE
- US housing starts 890K vs 920K exp
- US PPI +1.4% y/y vs +1.5% exp
- Canadian house prices fall for fifth consecutive month
- Eurozone consumer confidence -23.6 vs -23.2 exp
- Caterpillar warns of 4% y/y decline in business
- Cable hits 2.5 year low
- Gold down $41 to $1564
- S&P 500 down 1.2% to 1512 – worst percentage decline since Nov 14
- USD leads, NZD and GBP lag
Wild ride in the markets today. The euro and pound were beaten up badly on speculation the Fed is slowly shifting out of easing mode.
There were rumors of a commodity fund blowing up and that put pressure on gold and industrial metals. The FOMC minutes broke the market’s back.
Similar story in cable the 2012 lows gave way.
