The Dow Jones recover from earlier losses to end the section around 30 point from the previous closing price. The turn around was after minutes from the latest Federal Reserve meeting. Which indicates that the central bank might be ready for another round of stimulus if needed.
There is not certainty that the Fed will take immediate action to stimulate the economy, but it gives investor hopes, and that, is enough for the day.
In the meeting it was acknowledge that several factors influenced financial markets. Weaker than expected economic data in the United States, concerns about the fiscal and banking situation in the euro area, and the outlook for global economic growth has been a major for investors sentiment. Nevertheless the expectation of easing of monetary policy in the United States has offset the markets confidence.
In the current situation, with the small improvement in the economy, it could take longer for the Fed to decide on stimulating the economy. It may not be until next year that the fed could be forced to act. It is expected that the US recovery could deteriorate if spending cuts and taxes rises in 2013.
In the mean time markets will turn to the presidential election, for clues on where the economy and the market might be heading. United States presidential election, will be held on Tuesday, November 6, 2012.