The US dollar continued to hit record lows against the euro as Fed Chairman Bernanke remained fixated on fostering economic growth—extending the downside risks for the crumbling dollar. The Chairman reassured the Senate committee that the central bank has resorted to stimulating economic growth to prevent the economy from falling into a recession, and caused the euro to climb into the 1.52 range as more rate cuts are explicitly underway. Consequently, the Swiss franc picked up the biggest gains with most major currency counterparts following suit and appreciating against the greenback. The New Zealand dollar was the only currency to tally losses against the US dollar as it faced increased resistance at recent 22-year highs.
The securities market buckled as concerns loomed for the US economy and sent share prices plummeting. The Dow Jones Industrial Average plunged as it shaved 112.10 points to hold at 12,582.18 points with AIG Group and JP Morgan Chase posting the biggest losses, while only six out of the big 30 were able to pick up gains during the volatile session. The broader S&P500 fell 12.34 points to stay at 1,367.68 points as the number of declining issues almost tripled the amount of advancing issues.
US Treasuries rallied as stock prices fell through and raised the appeal for risk free investment as economic uncertainty took a toll on investors. The increased appeal sent the benchmark 10-Year yield to 3.67 percent with the 2-Year yield falling to 1.84 percent.
Tomorrow’s economic releases do not show strong market moving potential as Personal Spending and Consumption are expected to hold near their previous levels, with the U. of Mich. Consumer confidence index anticipated to show a minor rise.
