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More quantitative easing in the US is "certainly possible", Federal Reserve chairman Ben Bernanke said in a rare television interview on Sunday, as he defended the central bank's latest measures to help the US economy and didn't rule out taking more.

Mr Bernanke said that critics of the Fed's move to inject a further $600bn into the economy by buying US government debt were not "looking at the risk of not acting." Critics fear the move will fuel inflation and fail to lower unemployment, which the Fed has said is a central aim.

The Fed's latest bout of quantitative easing will see the bank buy about $75bn of US Treasuries a month until the end of June in an effort to drive down long-term interest rates in the economy. Mr Bernanke added that more QE is "certainly possible."

Treasuries snapped a three-day loss, while the dollar and stocks rose after Federal Reserve Chairman Ben S. Bernanke said the central bank may boost purchases of U.S. securities. Silver jumped to a 30-year high.

Ten-year Treasury yields fell five basis points to 2.96 percent as of 5 p.m. in Tokyo, while the dollar strengthened against 12 of its 16 most active peers. South Korea’s won rose to a two-week high. The MSCI Asia Pacific Index added 0.1 percent to 133.63, extending a three-day gain, and the Stoxx Europe 600 Index increased 0.4 percent. Futures on the Standard & Poor’s 500 Index lost 0.1 percent. Silver climbed to $29.9150 an ounce and copper rallied for a fifth day.

Fed purchases of Treasuries beyond the $600 billion announced are “possible” given that U.S. unemployment may take five years to fall to a normal level...

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1 GLD 122.49
+0.62 (0.51%)    
2 INX CA$0.47
0.000 (0.00%)    

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