STOCK MARKET WATCH -- Wednesday, 20 March 2013

[Demeter]

9. WE ARE NOT LOOKING AT CYPRUS ANY MORE....

Europe stocks recoup from Cyprus selloff

http://www.marketwatch.com/story/europe-stocks-recoup-from-cyprus-selloff-2013-03-20?siteid=YAHOOB

European stock markets rebounded from a three-day losing streak on Wednesday, with investors digesting the latest developments in the Cyprus debt crisis, after lawmakers the prior day rejected a proposed levy on bank deposits as a condition for a bailout...Trading on the Cyprus Stock Exchange was halted and banks were closed as politicians scrambled to find a solution to the country’s debt woes.

The Cypriot parliament Tuesday night rejected a proposed bailout, which would have seen bank depositors lose money for the first time in the euro-zone debt crisis. Thirty-six members voted against the deposit tax, while 19 members from the ruling party of President Nicos Anastasiades abstained.

The bailout rejection opened the door a bit wider to the possibility of Cyprus leaving the 17-nation currency bloc, analysts said....Banking shares, which were among the biggest decliners in recent days’ action, recouped...


Stock futures shake off Cyprus, look to Fed

OH YES, UNCLE SUGAR'S BANKSTERS WILL SAVE US ALL...NOT

http://www.marketwatch.com/story/stock-futures-shake-off-cyprus-look-to-fed-2013-03-20?siteid=YAHOOB

U.S. stock futures shook off some lingering Cyprus worries and pushed higher on Wednesday ahead of the outcome of a Federal Reserve meeting and news conference from Chairman Ben Bernanke.

Investors are hoping for a tepid economic outlook from the Fed and no signs that the central bank will ease up on its easy-money policy. But they’ll still be looking eastward for news on Cyprus, where a day prior the parliament rejected a controversial bailout deal...The Fed will release its economic projections at 2 p.m. U.S. Eastern Time Wednesday, the same time as it releases the policy statement. Bernanke’s news conference will start at 2:30 p.m. Fed watchers say the central bank will hold steady on policy, but its economic forecasts will be watched closely for any signs of optimism over the outlook for the next three years. If that view is too rosy, it could spark fears the Fed will end its ultra-easy money policy sooner and stocks could sell off, said economists.

But they also don’t expect the Fed to rock the boat too much for markets. Strategists at Deutsche Bank said they don’t see any big changes at Wednesday’s meeting. Chairman Bernanke and Vice Chair Janet Yellen “have been clear in recent commentary that the improvement in the labor market to date falls far short of what they will need to see before reducing monetary-policy accommodation,” they said in a note.

That is all that’s on the U.S. calendar for Wednesday, which leaves investors time to chew over the Cyprus crisis...Laurence D. Fink, chief executive officer of BlackRock, said in an interview with Bloomberg on Wednesday that Cyprus is a reminder of the “frailty of Europe” but is not really a “major economic issue,” and investors should put it in perspective. He expects U.S. stocks will rally another 20% this year, though he said Cyprus has triggered somewhat of a correction.

“Depending on the economic information that we receive, we can be in the beginning of a 5% correction or we’re going to be in a probably prolonged one- or two-month pause, which I don’t mind. But I would say by year end, equity markets are going to be much higher,” said Fink.

FAMOUS LAST WORDS...