Retail Sales Up

The International Council of Shopping Centers reported that chain-store sales rose 2.8% in December 2009, compared to December 2008 sales.  The rise was only slightly better than expected, but still helped to push the markets up as the S&P 500 posted a modest gain of .5%.

Bank of England -  Key Lending Rate Unchanged

The Bank of England’s Monetary Policy Committee on Thursday left its key lending rate unchanged at a record-low 0.5%.  The BoE is continuing it quantitative easing policies not only by keeping interest rates, but also announced it would begin purchasing corporate bonds.  Ideally the extra money infused into the system should encourage lending from the institutions.  Naturally the British Pound decreased to $1.5942.

People’s Bank of China - Raised Key Interbank Market Interest Rate

The People’s Bank of China sold 60 billion yuan ($8.8 billion) worth of three-month bills at 1.3684%, four basis points higher than last week.  This increase is seen as a tightening effect and a sign that China may be starting to unwind its policies put in place during the financial crisis.  The U.S. Fed has enforced that its easy-money stance will stick for at least several months to come, but the increase in China could be an indication for what’s to come in the U.S.