Stocks up on House Vote/Dollar Slides against Euro and Pound
Stocks up on House Vote/Dollar Slides against Euro and Pound
U.S. equity markets were advancing this morning ahead of a vote on the bailout package by the U.S. House of Representatives. House Speaker Nancy Pelosi said earlier today that she would not bring the measure to a vote unless passage looked certain. “I’m optimistic about today,” House Minority Leader John Boehner told reporters. “We’re not going to take anything for granted. We’re going to continue to talk to our members. But it’s time to act on behalf of the American people. It’s about their savings. It’s about their jobs.” One of the House Republicans who voted against the measure on Monday said today enough votes “are probably in place” to get the bill passed.
“It looks like they’ve put enough special-interest pork into the measure to buy enough votes.” said Matthew Carniol, chief currency strategist at TheLFB-forex.com. “There’s help for film and TV producers, motorsports and the wool trust fund and there’s even a tax break for makers of wooden practice arrows for children. There’s also better tax treatment of income from litigation over the 1989 Exxon Valdez oil spill in Alaska, put there especially for Representative Don Young, the Alaska Republican who voted against the bill on Monday.”
It’s basically a sickening example of selfishness by the politicians involved. Over $1 trillion of value was lost on Monday after the House defeated the measure, aparently because some people weren’t getting their way.
In recent trade, the DOW was moving 1.66% higher. The broader S&P 500 was gaining 1.66% and the NASDAQ 2.49%. Crude oil futures were up 30 cents on the day and gold was trading $7 lower. The dollar was gaining 0.46% on the yen as equates advance, but was losing 0.08% to the euro and 0.77% to the pound as traders moved back into more risky carry trade positions.
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