>> Review of Last Week THE SWISS WERE THE BIG CHEESE... The - TopicsExpress



          

>> Review of Last Week THE SWISS WERE THE BIG CHEESE... The weeks major financial market mover was the Swiss National Bank, which shocked everyone Thursday by lifting its cap on the value of the Swiss franc versus the Euro. This spiked the value of that countrys currency but slammed others, causing panic among global money market players. Calmer heads prevailed Friday and stocks rallied, but the three major indexes wound up with their fourth straight week of losses. The stock market has been crazy volatile this month and last, as dropping oil prices batter energy stocks and stagnant European and Asian economies raise fears that global deflation could infect the U.S. economy. Economic reports over here delivered the usual good news/bad news mix. It was disappointing to see Retail Sales off 0.9% during the holiday season. Manufacturing in the New York area was back in growth mode after its dip in December, but factory activity in the Philadelphia region registered slower growth for the month. The Core Producer Price Index (PPI) recorded wholesale prices up hotter than expected, though the Core Consumer Price Index came in cooler, at 0.0%. Initial Unemployment Claims shot up to 316,000, yet Continuing Claims dropped to 2.424 million. Michigan Consumer Sentiment hit its highest level since 2004. The week ended with the Dow down 1.3%, to 17512; the S&P 500 down 1.2%, to 2019; and the Nasdaq down 1.5%, to 4634. With stocks slipping, U.S. economic data mixed, and the European currency shocks, investors flocked to the safety of bonds. Unfortunately, the 30YR FNMA 4.0% bond we watch still finished the week down .79, at $106.24. Nonetheless, national average fixed mortgage rates dropped for the third week in a row in Freddie Macs Primary Mortgage Market Survey for the week ended January 15. Many hit levels not seen since May 2013. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up to the minute information.
Posted on: Tue, 20 Jan 2015 04:10:19 +0000

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