Sentiment Sours as Bernanke Plays Down QE3 Speculations

Market sentiment soured as Fed Chairman Ben Bernanke damped hopes on QE3 on the second day of his testimony. Moreover, S&P joined Moody's by putting US' credit rating on review for a downgrade. Risky assets slumped. Wall Street fell with the DJIA and S&P 500 Index losing -0.44% and -0.67% respectively. Oil fell sharply, reversing most of the gains made over the past 2 days, as investors sought safer investments. The front-month contract for WTI crude oil plunged to as low as 94.53 before settling at 95.69, down -2.41%. The equivalent Brent contact (expired yesterday) slipped modestly and closed at 118.32, down -0.39%, while the more active September contract lost -1.35% to close at 116.26. Gold extended the rally for an 8th day and surged to a record high of 1594.9 before settling at 1589.3, +0.24%.

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Sentiment Sours as Bernanke Plays Down QE3 Speculations