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Today US

Mr. Bernanke reiterated the Fed's intent to remain data dependent by saying asset purchases could be scaled back if economic conditions improve faster than expected, and inflation rises towards the Fed's objective. However, the Fed Chairman also said if financial conditions were to tighten, the current pace of purchases could be maintained for longer.

While the release of the statement received much of the attention, it coincided with the June housing starts report, which came in well below expectations. Housing starts hit an annualized rate of 836,000 units during June while economists polled by Briefing.com had expected for housing starts to hit an annual rate closer to 958,000. Prior month figures were revised upward to reflect an annualized rate of 928,000 starts. Building permits also disappointed, falling from the prior month's rate of 974,000 to 911,000 for June. That was below the pace of 1,000,000 building permits that had been expected among economists polled by Briefing.com.

On a related note, today's weekly MBA Mortgage Index declined 2.6% to follow last week's 4.0% decrease. This was the fifth negative reading in a row and the ninth decline out of the past ten weeks.

Similar to futures, Treasuries are on their highs with the benchmark 10-yr yield lower by five basis points at 2.48%.

(Source: Nasdaq)

Markets, especially emerging markets, reacted quickly moving higher. Xchange rates of emerging markets also strengthened.
Just goes to show how volatile it all is. A pronouncement by Ben or any one of the Fed presidents can instantaneously move the markets either way.

Today US June CPI

June CPI comes in hotter-than-expected (+0.5% actual, +0.3% Briefing.com consensus) mostly due to a 6.3% increase in the gasoline index.
Core CPI increased 0.2%, as expected.

Shoprite down over 3% after trading update.

But the turnover ouside of ZA is up.

When converted to rand, the turnover of the 153 supermarkets the Group operates
outside the borders of South Africa, increased by 27.9% compared to the 2012
reporting period. Taken at constant currencies these operations grew by 21.2%.

http://www.sharenet.co.za/v3/sens_display.php?tdate=20130716140000&seq=12

When SARS has accepted your supporting documents (after audit), you will receive a letter notification (get it in efiling under the SARS correspondence section). Mine just received looks like this ...

gcr, did you see my post re: your UT base cost grievance ?

http://www.shareforum.co.za/shares/tax/msg1251/#msg1251

Rock-A-Bye Baby
(from www.hussmanfunds.com)

Outside of Bernanke’s counterfactual and economically illiterate “wealth effect” argument, even the members of the Federal Reserve have no idea what transmission mechanism would link further increases in the monetary base to any increase in economic activity or employment. There are already trillions of dollars of idle reserves in the banking system. Why keep pushing on a string when pushing it relieves no constraint that’s binding? You just have more string to tangle, trip on, and reel in later.

In short, QE benefits stocks primarily because investors have come to believe that QE benefits stocks – a belief that is ultimately likely to be added to the long list of extraordinary popular delusions and the madness of crowds. Investing based on expectations of more QE is not an act of analysis or a response to investment merit, but is instead an act of blind faith that borders on superstition.

Attention JaDEB. 

Market Commentator Weekly: Karl Leinberger - Coronation Fund Managers

Interesting read. Reflects my sentiments on gold vs. platinum, BTI and SAB.