JPMorgan Chase, the biggest US bank, has revealed a surprise trading loss of at least $2bn (£1.2bn) on complex investments made by its traders.
Positive economic data spurs a rise in the stock indexes
Stocks rose on Thursday December 22nd putting the Standard & Poor’s 500-stock index on the cusp of finishing out the year higher as another decline in jobless claims pointed to further improvement in the labor market.
Stocks had their best month in almost a decade, rising from their low point of the year in an almost uninterrupted four-week rally. The juice mostly came from Europe, which appeared to finally find a strategy for taming its debt crisis.
The Bank of Korea has become the latest central bank to step into the money markets in a bid to stabilise its currency.
The Korean won has declined by 10% against the US dollar in the past month, and the bank said it was taking appropriate steps to stem the falls.
The move follows a similar action by the Indonesian central bank on Thursday to shore up the rupiah.
As gold topped a record $1800 on Wednesday, traders that are long gold [GCCV1 1751.50 -32.80 (-1.84%) ] began to get nervous that they were behind a trade that may not have any potential new buyers left. After all, a trade only keeps working if you can find someone else who wants that particularly security or commodity at a higher price.