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U.S stocks extended losses last night after Federal Reserve Bank of Atlanta President Dennis Lockhart said the U.S. economy is on “solid footing” and he would support continued cuts to stimulus. The SPX 500 has lost 1.6 percent in 2014, the worst start to a year since 2009. The Fed, who meet next on January 29th, announced last month a reduction in its monthly bond-buying program, citing a recovery in the labour market. 

Meanwhile, European equity stock futures have also retreated, indicating the regions equities will fall from their highest level since May 2008 amid concern over equity valuations. The Stoxx 600 currently trades at 13.9 times its members’ projected earnings. The gauge ended 2013 at its highest valuation since the end of 2009 with earnings for the index falling around 5 percent last year. 

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