Bobbys Corner-Open Market-May.21.2012

Good Morning:

As expected-the G8 Summit was anticlimactic-and  produced nothing new.   
The Euro Zone  had lots of issues last week:
New French leader-looks at growth-not austerity
Spain’s budget deficit problems grow wider
Greece-are they or are they not leaving the Euro?

G8 members are showing their continued support for Greece to stay with the Euro.

European leaders are having their own summit meeting this Wednesday-Boy they like to go to meetings!

One of the main discussions will center around the fact that France’s new President, who won the election because he called for growth, is clearly at odds with Germany’s desire to cut spending and put the region on austerity measures,

Asian equity markets were mostly higher-while Europe and US Futures are all in positive territory.
Gold & Silver are lower-Oil is a touch higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-May.18.2012

Good Morning:

The equity markets started the overnight session down 3% throughout the region.
The continued ongoing Greek crisis along with the downgrade of Spanish banks all lead to the drop.

The Euro initially took a beating-EUR/USD traded as low as 1.2641, and then as the market’s soaked in the news-the pair rose to a high of 1.2728.  Quite a comeback by the single currency.

The Euro Zone had a really tough week:
-with no real news or changes in Greece-except talk about the election-which is not till June 17.
-new governments in France and Greece, after May’s election.
-Spanish bank downgrades.

Now all eyes will be on this weekend’s G-8 meeting at Camp David.

Asian equity markets were lower-Europe is mixed-while US Futures are higher.

Oil is lower-Gold is higher today.
Facebook IPO priced at $38/share-let’s see how the markets cooperate. 

HAVE A GREAT DAY- WEEKEND & GOOD LUCK

Bobbys Corner-Open Market-May.17.2012

Good Morning:

A fairly quiet session-Especially in Europe due to the Ascension Day holiday.

Spanish auction results helped raise 2.494 bln euros-but they had to pay up for the funds.
April 2016 bond-yield at 5.106% versus 3.374% previously
July 2015 bond yields at 4.876% versus 4.037% previously
January 2015 bond yields at 4.375% versus 2.890% previously

Italian 10 year bond yields touching 6%.

The estimated cost of Greece exiting from the euro is being put at $1 trillion-but this is just an estimate-so I am certain that the real cost will be much higher.

Nerves are taking center stage in the marketplace, as the entire Euro Zone is reeling in bad news, and the rest of the world is very concerned. The US is concerned that the contagion could cross the Atlantic, and those economies in Europe  that are not being so hard hit are always going to be cautious and concerned about their neighbors.

Gold is higher-and Oil is just a bit stronger since NY woke up.

Equity markets are lower-along with US Futures.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-May.16.2012

Good Morning:

Cable lost some steam after BOE’s King made comments that the UK recovery will be “slow and uncertain”.  With the UK financial sector
exposed to the Euro Zone and their current crisis, there will be continued pressure on their economy.
Inflation in the UK inched higher-while growth in the nation slowed.

The Euro lost steam-and dropped below the 1.27 level in overnight trading.  The continued concerns over Greece, and that Spain will face “astronomical” borrowing cost (according to Rajoy)-there is a risk that the markets may stop lending to the country-which would cause a major credit crisis throughout the region.  These components all lead to the drop in the euro.

Gold is lower-at $1540/oz. Oil is also lower.
Asia equity markets were lower-and Europe is mostly higher except for the FTSE.
Dow Futures are also higher at this time.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-May.15.2012

Good Morning:

Germany had some positive news today-when German Q1 took the markets by surprise and rose .5% versus the .1% that was expected.
It seems that better than expected exports along with better than expected consumer spending kept the data positive.
The German data helped keep Euro Zone Q1 GDP flat-as opposed to a negative number.
Italian preliminary Q1 GDP was -.8%-higher than the -.6% expected.
Dutch Q1 GDP -.2%-better than the -.3% that was expected.

After yesterday’s downgrade of 26 Italian banks by Moody’s-the markets  and rating agencies will be looking at the Spanish and the rest of Europe’s banking sector with a fine tooth comb, not that they haven’t been.

US Retail Sales rise .1%-as expected.
US April CPI +2.3%-as expected.

Dow Futres are positive-as are world equity markets.
Oil is higher too.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-May.14.2012

Good Morning:

I see that the trend has stayed one sided since I was last in the USA- over 2 weeks ago.

I have been across North America, Saudi Arabia,Qatar,Jordan with a quick stop in Egypt-to see our clients and IBs throughout the region.

Risk off- as the markets are concerned over Greece-with Spain not far behind-and worries over the Chinese economy, and the about future growth of the country is adding  jitters to the markets.

Spanish German 10 year government bond spreads increased to a record 484 bps from 449 bps first thing this morning.
Italy also sold 3.5 billion euros of 3 year notes at 3.91%,  European sovereign bonds are selling-just at higher yields.

Euro is lower
Gold and metals are lower
WTI & Brent are lower
10 year US treasury yields are lower 
Equities are lower too. 

Let’s see what today brings:

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.25.2012

Good Morning:

The UK had some disappointing news this morning:

UK Q1 GDP -.2%.  Medium forecasts were for .1%
So UK now in a  technical recession and cable collapses to  1.6090 from around 1.6140

Spanish 10 year bond yields are down to 5.825%.

German 30 year Bunds were sold at 2.41% (down from 2.62%).
The yield was better but the take up was lower than expected. 
They sold 2.405 bin euros out of a total targeted amount of 3 bln euros.
Germany keeps it’s 2012 GDP forecast at +.7%-with +1.6% in 2013.

Oil is now at $104.31/bbl.

Asian equity markets were mostly higher.  Europe is higher-as are US Futures.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.24.2012

Good Morning:

We awaken this morning to a quiet marketplace.

Italy and Spain both had successful auctions-coming in at the top end of the range.
Spain paid  more for it’s 3 month bill .634% from .381% at the last auction.
Which is a continuing sign of credit issues in the Euro Zone.
Spanish/German 10 year government bond spread narrowed to 424 bps from 436 bps earlier this morning.

Australian inflation came out lower than expected-and market participants are expecting a rate cut by the RBA.
Most bets put the rate cut coming in May at their next meeting.

Gold and Silver are higher.
Oil up at 103.55/bbl.

Asian equity markets were higher-except for Tokyo.  Europe and US Futures are also higher.

HAVE A GREAT DAY & GOOD LUCK