Euro’s latest rebound emerged on stabilizing inter-bank liquidity but without any marked improvement on the sovereign front
Today’s FOMC minutes (18:00 GMT) will reiterate that inflation is the last thing on the minds of the Committee. (more…)
On 14 July 2010, In Alternative Investments, By staff
On 13 July 2010, In Alternative Investments, By staff
The pound will be in the spotlight today and this week with a number of economic announcements starting with the release of the delayed UK final Q1 GDP data, and current account figures. After Friday’s poor PPI and trade data any disappointment here could well heap further pressure on the pound and exacerbate the losses seen on Friday. The final revision of GDP is expected to come in unchanged from the previous reading around 0.3% despite speculation about the reasons for the delay from June 29th, and possible problems with the quality of the data. (more…)
On 12 July 2010, In Alternative Investments, By staff
Canada and Australia continue to surprise with notable improvements in their labour markets
As long as US lawmakers stand against China’s joint venture plans (steel, oil and gas), the flow billions of Chinese investments are due to reach Canadian oil and gas properties in coming years
S&P500 awaits Q2 earnings (more…)
On 12 July 2010, In Alternative Investments, By staff
The Euro has continued its recent surge higher on the back of renewed optimism about the banking system, and the outcome of the forthcoming European stress tests, but also on the back of a significant recovery in both German imports and exports for May. (more…)
On 7 July 2010, In Alternative Investments, By staff
The rare negative trifecta currently weighing on yields, stocks and the US dollar is underlined by a common denominator of disinflationary expectations coupled with fears of a double dip recession. This helps explains the spread between US & German 10 year yields (US minus GE) falling to its lowest level of the year at 34 bps (0.35%) last week. (more…)
On 6 July 2010, In Alternative Investments, By staff
London – 6th July 2010
Yesterday’s US holiday gave the market the perfect excuse to do as little as possible as currencies traded in fairly tight ranges.
Concerns about global growth continue to weigh on markets over the last 24 hours after the slowing service data out of China last week, with UK Service sector PMI for June yesterday coming in slightly worse than expected at 54.4, against an expectation of 55.0, its slowest rate for 10 months. This weaker than expected data knocked the pound lower and has lowered expectations of any move higher, or indication of a move higher on interest rates in the near future. The other noteworthy announcement on an otherwise quiet day was the addition of NIESR’s Martin Weale to the Monetary Policy Committee from the August meeting, though this was largely met with indifference by the market due to the fact that he sits broadly between the dove and hawk camps. (more…)
On 5 July 2010, In Alternative Investments, By staff
Yesterdays better than expected 3 month European Central Bank lending auction saw a much lower take up of euros than the market had expected at €131.9bn, and this saw the single currency regain some ground, as concerns about the European banking sector subsided a little in lieu of today’s maturity in the 1 year emergency loan facility. (more…)
On 29 June 2010, In Alternative Investments, By staff
London – 29th June 2010
The single currency continues to be the currency market whipping boy as markets continue to adopt a risk-averse approach to currencies with sterling being one of the main beneficiaries of the Euros’ woes.
Widening CDS spreads and high interbank lending rates across Europe have increased funding pressures, with interbank rates at 7 month highs. There is also a potential liquidity shortfall of €100bn this Thursday as European banks have to repay €442 billion euros to the ECB on Thursday. (more…)
On 25 June 2010, In Alternative Investments, By staff
As far as currency markets are concerned the subject of sovereign debt and Greece remain the focal point, however there is also concern about what President Obama may say about US plans for new financial industry regulation later today, which could increase rules on banks and force separation of investment banking and retail banking, and this has seen the yen rebound slightly.
The Euro has continued to slide lower, with the spread on 10 year Greek bonds blowing out to in excess of 500 basis points yesterday, above its German equivalent, as the likelihood of a Greek default continues to increase. (more…)
On 18 June 2010, In Alternative Investments, By staff
Much of yesterday was taken up with rumours of an alleged report that the International Monetary Fund, the European Union and the US Treasury were in the process of drawing up a €250bn credit line for Spain in order that they could avoid having to tap the bailout package agreed amongst EU finance ministers. (more…)
