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Bloomberg(16/9) -- U.S. stock and
Treasury futures rose, with the Standard & Poor’s 500 contract
gaining the most in almost a month, and the dollar fell after Lawrence
Summers withdrew from the race to be the next Federal Reserve chairman.
S&P 500 futures gained 1 percent as
of 10:34 a.m. in Singapore, heading for the biggest advance since Aug.
22. Ten-year U.S. bond contracts jumped the most in six weeks, climbing
one point, or $10 per $1,000 face amount, to 124 17/32, based on
electronic trading on the Chicago Board of Trade. The greenback slumped
against all of its Group of 10 currency peers, losing 1 percent against
the Australian dollar.
Summers withdrew from contention before a
two-day meeting starting tomorrow, at which the central bank is
forecast to begin paring unprecedented bond purchases, known as
quantitative easing. Summers would tighten policy more than Janet
Yellen, who was his main rival to replace Chairman Ben S. Bernanke,
according to a Bloomberg Global Poll of investors, analysts and traders
last week.
“Investors are saying that QE may not be
as aggressively dialed back under Yellen, who is now the front-runner,”
Walter “Bucky” Hellwig, who helps manage $17 billion of assets at
B&T Wealth Management in Birmingham, Alabama, said in a telephone
interview. “QE is still a very important factor in the minds of
investors and we can see this in the potential movement of the stock and
bond markets.”
Summers, 58, was one of three names that
Obama had mentioned as possible replacements for Bernanke, whose term
as Fed chairman ends on Jan. 31. Yellen, 67, the current Fed vice
chairman, was also on Obama’s candidate list along with Donald Kohn, 70,
a former Fed vice chairman, the president said earlier.
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Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 11:02 AM
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