Becoming a nervous bull

Market observations for the week of June 21 to June 25, 2010

Claymore Investments, Inc. 29 June, 2010 | 4:29AM

The major market indices finished the week lower on renewed concerns over the financial stability of Europe, technical considerations and growing signs of an economic "soft patch" in the U.S. economy. Last week's sell-off was global in nature, with almost every major global index posting a loss.

FOMC meeting. As expected, last week's two-day Federal Open Market Committee (FOMC) meeting concluded with no change to interest rate policy. The committee did reiterate its commitment to keep rates low for an "extended period." The one notable change in the statement was the acknowledgement of the fiscal crisis in Europe.

The statement said that while the U.S. economic recovery is proceeding, "financial conditions have become less supportive of economic growth on balance, largely reflecting developments abroad." Also noted in the statement: labour markets are showing gradual improvement, and inflation is likely to remain a non-event for some time.

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Claymore Investments, Inc.

Claymore Investments, Inc.