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U.S. Day Ahead: Markets digest Bernanke's testimony

Thursday, June 07, 2012 - 03:14

June 7 - Global markets digest Fed Chairman Ben Bernanke's testimony. Elsewhere, one Fed president's speech, international trade numbers and wholesale inventories and sales highlight the day.

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Stocks got an early left following China's surprise interest rate cut although the enthusiasm. They -- after Federal Reserve Chairman Ben Bernanke didn't hopes for another round of quantitative easing. During his testimony today Reuters economics editor for the Americans those -- curt is here. Bill let's sort this out Wednesday Janet Yellen made some comments that have investors thinking QE3 might be back on the table. So what do you think happened here. I think it was not just Janet Yellen there was some other comments in Portsmouth is as a -- that gave him best is an impression. That perhaps more action was closer than previously been expected by the Fed put that together -- people on the other side of that but that the Fed who's who but equally opposed. So the idea of any further easing and I think with the outlook for the US economy so incessant -- -- so much uncertainty in Europe. The chairman playing his role as chairman Bernanke cited today it was putting -- it's -- more weights and siesta did not tip his hat. I let's go to Europe since you brought it up Spain managed to raise more than two billion euros in the bond auction today so Spain obviously is not shut out of the markets. Is this a good development. I think is. And encouraging developments plain and relief for investors in the common earlier this week by the Spanish government minister Houston's famous atop the market. May have been a bit of a negotiating tactic which -- trying to squeeze some concessions from Germany. About the way this thing could access the European rescue funds. Those of -- -- work going on today. To find a way to get Spain monies to recapitalize its banks but it's still a very long way to go to. And I think the very significant swing -- downgrade. But three notches of fish of Spain's sovereign credit -- today is -- reminds of the size of the problem Fitch said that it could be sixty billion euros Spain needs. And if in a really extreme scenario could -- -- a hundred been here so let's just a reminder of how big the problem is that. Absolutely somber excellence. A few economic numbers for you data heads tomorrow we're gonna get a report on April wholesale inventories and sales in the equity weekly index will be out as well. Now the aftermath of Bernanke's testimony Minneapolis fed president ad hoc Mary on -- to a -- gives a different pocket the university of Michigan's. Stephen -- Ross school of business. It is speech today actually kind of called US job growth disappointing he also said increased economic activity is the only gravity. -- jobs numbers. Fans are arriving in Poland and Ukraine for the European football championship starts tomorrow. -- -- someone who may actually know how it happens just like Paul the octopus during the World Cup two years ago. To psyche fish in Singapore we're trained to pick possible Nero. 2012 winners for the first match between Greece Poland the fish chose Poland as the winner. The official excuse between England and France on Monday. That is -- you stay ahead follow us on Twitter Reuters Insider and also check out our TV channel at Reuters dot com slash writers TV. I'm Rhonda -- this is writers.

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U.S. Day Ahead: Markets digest Bernanke's testimony

Thursday, June 07, 2012 - 03:14