London, United Kingdom (PressExposure) September 15, 2010 -- “Sovereign-International” analysts have told clients that although the US economy shed 131,000 - more than double expectations - and the private sector created far fewer jobs than the market had hoped, there was a distinct chance that investors would regard the poor number as a cue to drive equities higher in anticipation of further quantitative easing from the Federal Reserve.

Markets had hoped that the private sector would create 100,000 new jobs but the data showed a shortfall of 29,000.

One “Sovereign-International” analyst said, “Although the number should be a fairly clear sign that the recovery is faltering, there are investors who have latched on to the rhetoric of Fed Chairman, Ben Bernanke, who has stated that, to all intents and purposes, the central bank stands ready to restart its quantitative easing program. They believe that the money will likely end up in the hands of the banks who will more than likely plough it into equities and commodities. ”

“Sovereign-International” analysts say they expect Mr. Bernanke to encounter stiff resistance from more hawkish members within the FOMC (Federal Open Market Committee), the body which decides on monetary policy, but, ultimately, he will get the go-ahead perhaps as soon as the August 10 meeting.

About Press of the Day

Press of the Day
42 Princes Square
Bayswater
W2 4AD
0800 004 9583
http://www.sovereign-international.com

Press Release Source: http://PressExposure.com/PR/Press_of_the_Day.html