пропозиції роботи
Robert
Smug
Inwestor, Trader,
Doradca Inwestycyjny
(740), MBA
Temat: EUR / USD
What Wall Street Wants To Hear From The Fed Later Tuesday--Wall Street doesn't need anything specific from Fed, just not nothing
--Investors waiting for some reassuring words, in case things get worse
--Fed can only do so much and any rally likely to be short lived
By Tomi Kilgore
Of DOW JONES NEWSWIRES
Wall Street traders don't need a miracle from the Federal Reserve to restore some short-term confidence in the stock market, they just want to know the Fed understands what they've have been going through, and that they'll be around to provide a helping hand if needed.
The Federal Open Market Committee, which sets the Federal Reserve's monetary policy, will release its policy statement at 2:15 p.m. ET.
There has been a lot of discussion over what the Fed can say or do to lift investor spirits enough to spark a bounce in stocks. They agree, however, that the Fed has to say something.
"It doesn't have to be anything specific, but it can't be nothing," said Myles Zyblock, chief institutional strategist at RBC Capital Markets.
"They have to show the market that they are leaning to some sort of stimulus if things get worse from here," Zyblock said. "That might be enough to put in a short-term bottom."
The Dow Jones Industrial Average was up 101 points at 10911 in morning trading Tuesday.
Including Monday's 635-point drop, which was the sixth largest in the index's history, the Dow had lost 15% in a little over two weeks, as the first-ever downgrade of the U.S. debt rating, a growing sovereign debt crisis in Europe and fears of a global economic slowdown sparked a near-panic reaction on Wall Street.
Peter Kenny, managing director at Knight Capital Group, said investors are waiting for some "reassuring words that confirm the markets need some hand holding."
But at the same time, Kenny said that traders recognize that while the Fed's words can have a therapeutic effect on the markets for the short term, there's very little they can do to fix the global economic slowdown and debt problems. Therefore, any positive market reaction is likely to be short lived.
"There's a lack of confidence, and a clear slowdown globally, so the Fed can only do so much," Kenny said. "All they can do is be accommodative and supportive."
