The world upside down: the US is looming a deal on the 2014 budget that should avert untimely spending cuts, and the markets are not happy. Data on the US economy are good, and stock markets are down. These seemingly illogical reactions are linked by fears that the Fed 'doctor' will prescribe a smaller dose of securities purchases, which could go from 85 billion dollars a month to 50, at its December 17-18 meeting.
Markets, like a hypochondriac patient, want the drugs and fear withdrawal symptoms once the QE drug is tapered off. Let's hope that the decision, in one sense or another, will be taken soon, and we will thus be able to breathe without having this looming deadline on our necks.
Meanwhile, after the negative closure of Wall Street, the MSCI Asia Pacific regional index is falling more than 1% and a similar fall is recorded by the Nikkei. Moreover, the Japanese stock market has risen by about 45% since the beginning of the year, and foreigners have given credit to Abenomics, pouring 11 billion dollars into the Japanese stock market in the first 125 months.
The euro rose again towards 1,38 and the Australian dollar, following the news on the abandonment of the car industry, slipped below 0,66 against the euro. Yellow gold and black gold were stable ($1255/ounce and $97,4/b WTI, respectively).
