By Chris Becker
The catalyst for last night’s volatility following the end of QE3 was a very positive Q3 GDP print for the US, coming in well above expectations at 3.5% while weekly jobless claims printed as expected. Before this surprise, European markets had to absorb the new reign of King Dollar and the German October unemployment print which was steady (paradoxically the rest of Europe needs this to rise to have a lasting positive effect). Later in the session the CPI in the “Fourth Reich” came in a bit below expectations suggesting deflation is continuing to bake in even in the powerhouse economy.
The S&P500 finished up just 7 points below its high at 1994 points, showing how the recent rebound has strong momentum even amid the end of QE3 and a computer SNAFU on the NYSE last night:
