Fed Fails To Spark Buying Frenzy; Stocks, Bonds, Dollar Drop

The message from the Fed appears to be...

Which is a problem for stocks...(post-FOMC) - Small Caps worst...

And cash indices on the day tried to ramp to green but failed...

Futures show the early weakness during the European session...

Leaving the cash indices all in the red for the week...

Crazy day in vol too...

Treasuries were weak once again going in (the daily 8am selling resumed), weakened after an initial rally after GDP, then were unchanged post-FOMC...

The USDollar was spanked lower after GDP and recovered modestly after The FOMC Statement...

Dollar weakness helped commodities a bit but in general gold, silver, and copper ended unch on the day...

Crude pumped on a Cushing inventory draw, dropped after NYMEX Close...

EURUSD soared today - pressing up towards 1.12 before The FOMC Statement pulled back some gains...

And finally it is worth looking at the carnage in Europe today (specifically Germany)...

Charts: Bloomberg

Bonus Chart: Yeah, him again...

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Moon Kil Woong 9 years ago Contributor's comment

It is strange, the Fed's constant lying for multiple years and their constant playing games with the economic numbers using its balance sheet has made the entire economy untrustworthy of real growth, so much so investment in capital is pathetically low, companies have been and continue to buy back shares rather than invest in growth, and consumers are smart enough not to stretch their already leveraged balance sheet on rubbish. Sadly, we now have a bubble in housing caused by the very thing that caused the last crash and everyone now knows stock prices have been manipulated by fed calls for banks to gamble and overextend the market.

The inevitable end is utter failure of the economy to ever get growth up, a overextended government and Federal Reserve to fail to have traditional resources to counter an economic downturn, and a decreasing trust in US bonds as a International reserve currency leading to a call for some new realignment to weaken the US hold. This is all very bad for the US not because the US is a capital bastion, but because the US is forfeiting its right as a capitalist bastion and losing all the benefits of being just that. We must reject planned economies by the Federal reserve and growing socialist movement spearheaded by Fannie Mae, Freddie Mac, Sallie Mae, and TBTF banks before we start to lose our democracy as well as our economic status. The dwindling of the middle class is the start.