The first trading day of 2013 on Wall Street rose sharply. On behalf of blue-chip Dow Jones index rose more than 300 points in the 2nd, to usher in the opening years of the best performance since 2009. The broader Standard & Poor's index also hit a record closing high since last September.
Wall Street the day carnival is only one reason, that is, the United States Congress finally the day before the middle of the night by a motion to solve the "fiscal cliff.
Several months of political game to make the market nervous tortured, "financial cliff" near misses, investors naturally have reason to sigh, and therefore stimulate the stock market.
The market for American democracy, Republican parties reached agreement, after all, contains a number of favorable factors. Although the United States the first time in 20 years, raising taxes, but the tax increase threshold is raised to an annual household income of $ 450,000, thus affecting a limited range.
The motion decided to extend for one year the mortgage relief bill market as conducive to the real estate recovery has become an important reason for the stimulation of the day the stock market rose.
Just after bungee challenge still is the general mentality of Wall Street.
As the Knight Group CEO Peter Kenny said, everyone can not bear to pour cold water on the enthusiasm of the first time on the market reaction. But carefully looked at this solution, but it is not emboldened clapping and cheering.
Kenny said, can only be considered as a "second-rate" does not solve the most important problem of cuts in government spending, the performance of the Congress.
House of Representatives voted by addressing "financial cliff" motion, traders and political risk consultant Lawrence MacDonald Twitter fans said, he will take advantage of the market vigorously open up the machine, "I will spend hands , feet or even ten toes, full sell-off. "
Pacific (5.39, -0.08, -1.46%), Bill Gross, chief investment officer of the investment management company, on this night baked motion look of disdain: "It can be called the agreement"?
In his opinion, this is only a contingency plan, did not address any substantive issues, but exposing the incompetence of the authority.
He said: "Wall Street is no reason to clap celebrating investors should be worried, because we are faced with is a failure of government and unsustainable fiscal."
Sen Jiade Data Systems research department director Laurence Wormald also pessimistically expected, Wall Street, round up to a maximum of more than two or three days.
Investors, legislators of the new agreement superficial, far to solve America's fiscal problems. Vital to cut $ 109 billion government spending program to be postponed until after two months, while the U.S. fiscal sustainability has not been a fundamental improvement in March to raise the debt ceiling turn Ruqierzhi on.
Goldman Sachs economist Jan the Ha Qiusi expected from now until early March, Washington will begin a new round of arduous negotiations, and how to cut government spending to raise the debt ceiling. He said: "can be judged from the last negotiation process in the summer of 2011, is about to begin a new round of political negotiations on raising the debt ceiling in turn is very difficult, it is bound to hurt the market."
One can imagine that the next two months, Washington will still be dominated by Wall Street sentiment, every move may again lead to turmoil. Wall Street in the New Year carnival really can not expect too much to endure.
No comments:
Post a Comment