Global stocks continued their losing streak last night as fears concerning Europe and the continuing global slowdown weighed heavily on investor sentiment. It looks like the Federal Reserve Bank in the U.S. is starting to scramble and we will touch on that a little later. The Dow Jones, the S&P 500 and the NASDAQ all closed down between .80 percent and .95 percent while in Europe the hits were larger. The Spanish stock market has been absolutely slammed recently and last night was no exception with it falling 3.58 percent.
It seems clear now that Greece cannot repay what is owed at the moment and that means that either there will need to be more debt restructuring, meaning more loss for the creditors or potentially no more money for Greece and a shove out of the European Union. We will have to wait and see how things play out over the next few days.
The Federal Reserve Bank, as part of its operation twist scheme, purchased $1.81 billion dollars? worth of treasuries that have due dates ranging from February 2036 to May 2042. The aim is to swap short term treasuries they own for long, in an effort to being borrowing costs lower to therefore in turn, stimulate the economy ? As people or companies will find it easier to handle borrowing at lower interest rates.? Apparently there will also be meetings next week to determine whether the Fed will begin another round of stimulus?
The sale of treasuries has also been rising of late with yields falling to record lows for two consecutive days. ?In the U.S. $35 billion worth of two-year bond notes were at yields of record low prices and they are scheduled to sell the same amount again tomorrow. The yield for 10 year notes declined to 1.3875 percent and the thirty year bond fell to 2.4530 percent. Investors are still flooding in to pick up these investments. At such a low rate of return many are left wondering why investors would be convinced these bonds are a good investment, particularly with the huge debt load the U.S. already has and is unlikely to be able to pay back.
Over to earnings season now and Apple was butchered and if we look at the Apple Stock Price Today we saw it lost 5 percent in after-hours trading. This is apparently the first time in 39 quarters that Apple has reported results that missed analyst predictions. Apple have partly blamed expectations of their upcoming IPhone 5 release for the loss, ?claiming that anticipation of their new model stopped consumers purchasing current phones on offer. They of course also pointed to the economic slowdown. Either way, it does highlight that the Apple Brand is losing some of its resistance to global economic pressures as the financial crisis continues. It will be interesting to see whether or not Apple can bounce back after the release of their new phone.
Big Picture
As the crisis winds on, the effects are being felt by companies once considered to be insulated from global slowdown. We spoke about the McDonald Stock Price yesterday and now the Apple Stock Price today. As things continue to fall apart in Europe, it may be that these effects will be more pronounced in the coming quarters.
It is also interesting to note that investors are still flocking to bonds as a safe haven investment, particularly when the fulfillment of these investments relies on the ability of governments already too heavily indebted, to pay the bond debts back. ?We will need to pay close attention to what the Federal Reserve Bank does next week.
Check out our you tube video on The Federal Reserve Bank and Appple Stock Price Today
Tags: Apple stock price today, The Federal Reserve Bank
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