Summary: US Stocks Tumbled After The Announcement Of The Fed'S Announcement

Beijing time on Thursday morning, after the announcement of the Fed statement,

At the close, the Dow Jones Industrial Average fell 283.82 points to 11124.84 points, or 2.49%, while the Nasdaq composite index dropped 52.05 points to 2538.19 points, or 2.01%, while the standard & Poor's 500 index fell 35.33 points to 1166.76 points, or 2.94%.

The Fed statement is basically in line with market expectations.

Art Hogan, director of product strategy division of Lazard capital market securities research, said, "as expected, the Fed decided to adjust its 1 trillion and 650 billion dollar balance sheet to make the debt maturity longer.

I think Guan Jian's statement is that the Federal Reserve is trying to revive the housing market by buying mortgage securities.

ING analysts pointed out that the Federal Reserve is the only straw at present because there is hardly any fiscal stimulus and only monetary policy can be relied upon.

FOREX.COM chief strategist BRIAN DOLAN said: "this is largely in line with market expectations, even though the scale is bigger than expected.

I think at some point in the future, we may see the dollar taking profits.

Europe is still a mess. The global economy seems to be stagnating.

And this is likely to be the last blow of the Federal Reserve.

The association of real estate brokers announced that 5 million 30 thousand second-hand housing sales in August were better than expected.

According to a survey by Bloomberg, the average forecast of economists is 4 million 750 thousand.

In July, the second-hand housing sales volume was 4 million 670 thousand sets.

European stock markets are mostly down, Pan European Stoxx 600 index.

The US dollar index has risen.

The US crude oil (84.36, -1.56, -1.82%) inventories dropped 7 million 300 thousand barrels (expected to drop 100-200 barrels) last week, and crude oil futures fell 1 dollars, or 1.2%, at $85.92 a barrel.

New York gold (1777.80, -30.30, -1.68%) futures closed down 0.1% at $1808.10.

Moodie's Investor Service cut its debt rating, BAC dropped 7.7%, C declined 5.2%, and WFC declined 3.9%.

HP rose 6.6%, according to media reports quoted by sources, the board of directors of the company is planning to expel its chief executive, Li Aike (Leo Apotheker).

On the acquisition side, SABMiller agreed to buy Australian Foster 's group at 5.10 Australian dollars per share, which is valued at $10 billion 170 million.

In the energy sector, Apache agreed to Acquire $1 billion 750 million in Beihai's XOM assets, including the Beryl oil field.

Design software developer Adobe Systems (ADBE) rose 1.1%, and the company expects fourth quarter sales and profits to exceed expectations.

Software developer ORCL rose 4%. The company reported a profit increase in the fourth quarter after Tuesday's closing. An analyst pointed out that this performance removed investors' concerns that the technology budget could reduce the company's performance.

Microsoft (MSFT) fell 3.7%.

The company said Tuesday it would raise its share dividend by 25% from 16 cents per share to 20 cents.

GIS, a food producer, rose 2.6%.

The company's adjusted first quarter earnings exceeded Wall Street expectations.

The company also restated its adjusted profit targets in 2011.

Fed announces $400 billion distortion operation

The Federal Reserve Market Committee (FOMC) of the Federal Reserve announced after the end of the two day meeting that the current federal funds rate of 0-0.25% remained unchanged.

FOMC announced in its statement that it will introduce $400 billion worth of distortions.

These moves basically meet the expectations of the previous market.

The Fed did not cut Excess Reserve interest rates.

The so-called distorting operation means that the US Federal Reserve sells shorter term treasury bonds and purchases longer term treasury bonds, thereby prolonging the overall maturity of the Treasury assets. This operation will reduce the yield of long-term treasury bonds.

From the yield curve, this operation is equivalent to bending the far end of the curve downward, which is also the reason for the distortion operation.

About half a century ago, the Fed acted in a similar way, and the distortion operation was named after a popular song at that time.

At the end of August, at the meeting of Jackson and Holzer's world central bank officials' meeting, Bernanke did not mention QE3 (the third round of quantitative easing), but said the Federal Reserve would consider all kinds of possible economic stimulus plans, and announced that the time of September meeting should be extended from 20 days to 20-21 days and two days, which left a huge daydream for the financial sector.

The purpose of distorting operations is to lower the longer-term interest rates, thereby stimulating mortgage holders to refinance, reduce borrowing costs and stimulate economic growth.

Moran pointed out that Bernanke may estimate that the amount of $200 billion per purchase is equivalent to lowering the federal funds rate by 25 basis points (1 basis points 1/10000), because the Fed can no longer cut the benchmark interest rate that is already near zero, so it can only resort to purchasing assets and other means.

IMF forecasts European Banking exposure to 300 billion euros

The International Monetary Fund (IMF) released the latest report on global financial stability. It is estimated that the risk of European Banking exposure is 300 billion euros under the sovereign debt crisis, and the risks are rising.

IMF said in its report that the global financial stability risk has rebounded for the first time since October 2008, reflecting a recovery in the past 3 years.

The financial crisis has entered the political level. The political differences in the euro area have hindered the implementation of the rescue plan, while the United States lacks the medium-term fiscal reform policy mechanism, and the decision-makers must act as soon as possible.

IMF stressed that the euro zone sovereign debt crisis has spread to the banking system, pushing up credit and market risks.

According to the report, half of the 6 trillion and 500 billion euro sovereign debt issued by the eurozone government has credit risk. The sovereign debt crisis is pmitted from Greece to Ireland and Portugal, and then to Spain, Belgium and Italy.

Us second-hand housing sales in August exceeded expectations

The second-hand housing sales report released by the US real estate broker (NAR) in August showed that the sales growth in August was significantly higher than that in the market. It has hit a new high since March this year. Continued falling housing prices and low interest rates have pushed more buyers into the housing market.

NAR pointed out that the number of second-hand housing sales increased by 7.7% in August, and the total volume of seasonally adjusted and annualized products increased to 5 million 30 thousand. In August, the median selling price of second-hand housing decreased by 5.1% over the same period last year.

According to a survey by Thomson Reuters, economists expect average secondary housing sales to increase by 1.4% to 4 million 710 thousand in August.

Compared with the same period last year, second-hand housing sales in August increased by 18.6%.

NAR also said that the sales volume of second-hand housing in July is not adjusted, but it is still 4 million 670 thousand.

New York crude futures closed down 1.2% at $85.92 a barrel.

New York crude oil futures closed down on Wednesday because the pessimism of the Fed's outlook on the US economy has put a damper on the crude oil futures market, although weekly crude oil stocks have fallen more than expected.

On the same day, the New York Mercantile Exchange (NYMEX) delivered light crude oil futures in November, down $1, or 1.2%, at $85.92 a barrel.

New York gold futures closed down 0.1% at $1808.10.

New York gold futures prices closed slightly lower on Wednesday, but they rose during most trading sessions. The reason is that Moodie investors' service rating lowered the ratings of WFC, BAC and C, and the US dollar fell.

On the same day, gold futures on December delivered by the New York Mercantile Exchange (NYMEX) commodity exchange (COMEX) fell $1, or 0.1%, at $1808.10 an ounce.

Oil and banking shares closed down 1.6%

European stocks fell on Wednesday, and oil, banking and pharmaceutical stocks were under pressure.

Investors are waiting for the structure of the Fed's policy meetings, and the concerns of Greece continue.

Pan European Storck 600 index fell 1.6%, closing at 225.33 points.

On the last trading day, the index rose by 1.8% after Greece received a new round of aid and the hope of the Federal Reserve's new stimulus measures.

The French CAC 40 index fell 1.6%, closing at 2935.82 points.

The German DAX 30 index fell 2.5%, closing at 5433.80 points.

The FTSE 100 index fell 1.4%, closing at 5288.41 points.