Investors Waiting for Fed's Interest Rate Cut! by Milota Sidorova

An extreme volatility rated in last few weeks on Wall Street forced Fed's Tuesday decision to auction almost $30 billion in funds to commercial banks. The same approach repeats for the fourth time since the last month. Two-day meeting summoned on Tuesday is expected to carry another interest rate cut to recall the national economy. According the press, investors got cheered after big-ticket rose 5.2 percent in December due to the orders of the Commerce Department. Despite of that, consumer confidence fell in January, reported the Conference Board. In long term run, along with the confidence, the stock market noted the decrease of about 1,700 points (12%) for the Dow Jones index, The Standard & Poor index has plunged about 204 points (13 percent) and the Nasdaq loss of 507 points (18 percent), despite of slight previous week's growth. The stock prices rose altogether with the decrease of government bond's prices. According to some analysts, it indicates less fell for the safety of Treasurys. As the gold prices fell, the dollar lowered against the most major currencies. Also New York Mercantile Exchange has rated a price growth of petrol oils. In the report, a barrel of light sweet crude rose 65 cents to $91.64. They expect the following consolidation, while investors try to determine the Fed's take on the economy. According to the opinion of Todd Leone, the managing director of equity at Cowen & Co, the market was just in a holding pattern. He claimed that, they had hit a short-term bottom, and the market had been stabilizing as they all wait to hear the Fed's declaration.

related story: http://news.yahoo.com/s/ap/20080129/ap_on_bi_st_ma_re/wall_street;_ylt=AhKl4uMN1nAVPGfqP5okFF6s0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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