Wall Street suffered mixed results during trading Thursday afternoon. There was some hope that stocks could push forward yesterday, but in the end global pressures proved to be too much. The Dow Jones was able to manage marginal gains (0.42 percent, 45.50 points), and the NASDAQ finished in the black (0.09 percent, 2.19 points). However, the S&P 500 suffered a daily loss (0.03 percent, 0.38 points).
The outlook for this morning projected an early drop on the American composites, and at the opening bell that is precisely what happened. According to CNN, there is still hope for later in the day, but some investors are worried about pushing the bubble too hard.
According to Bloomberg News, much of the downward pressure against investment is coming from India’s central bank. The Reserve Bank of India increased benchmark reserves to 3.5 percent from 3.25 percent and investors around the world reacted by pulling money out of markets.
The decision in India was done to raise rates off their historic low (3.25 percent) and hold back inflationary pressure. It should be seen as a good thing in this time of monetary crisis. Unfortunately, when it comes to investment the only favorable policies are those that make money easier and cheaper, regardless of risks.
In other news, as the Greek debt crisis continues to draw on, some in the German government are broaching the possibility of involving the International Monetary Fund in the bailout of Athens.
According to Reuters, German spokesperson Ulrich Wilhelm stated that Berlin officially believes that Greece will successfully consolidate its debt. However, he maintained the possibility of involving the IMF to tie together loose ends.
Involvement by the IMF would do two things; first it would lessen the burden placed on Germany to finance the rescue, and second it would attach strict IMF conditions to repayment schedules and fiscal management. The IMF is notorious for ensuring that it gets repaid, sometimes to the detriment of its borrower, and Germany does not want to be left footing the bill.