On Thursday, the Federal Reserve Bank of Philadelphia said that its manufacturing index rose to 12.5 in June from -5.2 in May, well above expectations for a -2.0 reading. A separate report showed that U.S. existing home sales climbed 4.2% to 5.18 million units in May from April’s total of 4.97 million, far surpassing market calls for a 0.6% increase. Federal Reserve stimulus tools such as a monthly USD85 billion bond-buying program have pushed up stock prices in recent years, and the end of such liquidity injections could prompt investors to park their money elsewhere at least for a while, which fueled a massive day of selling on Wall Street and elsewhere. Investors returned on Friday, however, on sentiment that a Fed decision to wind down stimulus measures would point to an increasingly robust economy, which would be bullish for stock in the long run.
Posted on: Sat, 22 Jun 2013 03:29:25 +0000
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