Bobbys Corner-Open Market-January.11.2012

Good Morning:

A fairly lackluster overnight session greets us this morning.
German GDP came in at 3%-which was widely expected.  Analysts are not overly optimistic on growth in 2012-and expect German GDP to grow under 1% for the year.  With continued turmoil in the Euro Zone and the sovereign credit crisis that is not going away-the prospect for growth is weak.  The German economy has been resilient in the past-time will tell.
Continued investor confidence in the German economy allowed the sale of 5 year bunds (bonds) below 1% for the first time.
Italian bonds fared well during the morning session-with 10 year yields below 7%.
Comments by Fitch Ratings that the Euro regions debt crisis will worsen unless the ECB boots bond purchases sent the Euro lower.

Asian equity markets were higher-while European equity markets are lower-as are US Futures.

Oil is lower (still over &101/bar)-Gold and Silver are both higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.10.2012

Good Morning:

Rumors are running through the market that the Emerald Isle will need a second bailout.  Ireland is struggling with the interest it pays on the 30 billion euro notes that were issued to deal with the collapse of Anglo Irish Bank.  Ireland is currently paying 6% on this money-and needs to reduce this interest rate as soon as possible.  Economists are concerned that Ireland may be slipping back into recession-as data from the Emerald Isle is showing increased signs of economic weakness.
As usual the markets shrugged off the latest EU sovereign debt issue-with equities rising in all European markets.
Fitch ratings commented that Italy’s credit rating may be in jeopardy after the latest review is completed.

World equity markets rose across the board-and US Futures are also pointing to a positive opening this morning.

Oil is higher (trading over $103/bar)-and Gold and Silver are also higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.9.2011

+Good Morning:

The euro saw some strength as we start the new week.  With news that German Chancellor Merkel, and French President Sarkozy have met to discuss a plan to rescue the 17 nation single currency.
Talks were held in Berlin, where Chancellor Merkel and President Sarkozy are looking to sort out new rules on fiscal responsibility by member nations.  they will be focusing on tighter budget controls, along with keeping the crisis from spreading more.

The loonie dropped as the price of oil has started to drift lower.  With Canada as a major oil supplier (especially to the US) any move in the price of crude will cause concerns in Canada.

Gold and silver are slightly higher-while oil is a touch softer at this time.

Equity markets were mixed-while US Futures are higher at this time.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.4.2012

Good Morning:

A report showing that inflation slowed in Europe has prompted investors to push the ECB to reduce interest rates-as a means to get the stalled European economy back on track.
The single currency dropped to the lowest level in 11 years against the JPY.  Germany sold 10 year bonds 4.06 billion worth at an average yield of 1.93%.

Asian equity markets were higher-but European equity markets dropped as the marketplace realizes that the banks will need additional capital to boost their balance sheets in the wake of the debt crisis that is strangling Europe.

It seems that the ECB is out in the market buying Italian and Spanish bonds-no surprises there.

Oil trading over $102/bar, gold and silver are slightly lower at this time.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-December.30.2011

Good Morning:

The last day of trading for 2011 saw the Euro continue to stay weak.  The euro fell below 100 JPY for the first time since 2001.
The weakness in the euro will continue as investors have  concerns over the regions debt crisis-and the regions ability to work through this crisis.
Commodities are also looking to see their first drop since 2008-as copper,cotton and cocoa led the declines.  Concerns that the European debt crisis, and the slow down in China’s economy may slow demand for commodities.

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

HAVE A HAPPY AND HEALTHY NEW YEAR

Bobbys Corner-Open Market-December.29.2011

Good Morning:

After being on holiday for over a week-the headlines have not changed.  Europe in crisis, US economy barely showing signs of life, political problems persist in the Middle East etc.

FX markets were a bit softer after results from Italy’s 10 year bond auction.  Italy was able to sell about 7 Billion euro worth of 10 year bonds just below the key 7% yield.  Even with investors fears regarding Europe’s debt crisis-it seems that Italy is still able to finanace their debt through the open bond market-even though the yield’s continue to climb.

With concerns mounting that the ECB will add more cash to the financial sector-the euro fell to a 15 month low against the USD.  The ECB has elected to take this course-as they work hard to avoid a credit crunch.

Jobless claims came in at 381K.

Equity markets are higher as are US Futures.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-December.16.2011

Good Morning:

We see the end of the week ending with a weaker greenback and JPY.  With the US economy slowly showing signs of improvement-investors demand for safer assets lessened.

Following the downgrades by Moody’s and S&P-Fitch also downgraded Bank of America, Goldman Sachs, and Citigroup from the US.  European banks that were also downgraded were Barclays, Credi Suisse, Deutsche Bank and BNP.  The downgrades come after all three rating agencies completed their reviews of the financial sector.

Rumors are swirling around the markets that S&P is considering a downgrade of Italy and Spain-while leaving France alone-at least for this round.

World equity markets along with US Futures are all higher-as are commodity prices.

I will be on holiday until Dec. 27-so I would like to wish everyone a Merry Christmas.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

Bobbys Corner-Open Market-December.15.2011

Good Morning:

Spain sold more than 6 billion euros of debt today-higher than the 3.5 billion euros targeted.  Spain sold 5,9 and 10 year notes.  The yields were a bit higher than the Oct 20 auction-but certainly within expected yield returns.
Some investors look at today’s auction as a possible sign that the regions debt crisis is not worsening.
CHF firmed up this morning as the Swiss National Bank stayed the course and kept their monetary policy stable.  The have left the CHF pegged at 1.20 euros.
 
Ernst & Young LLP commented that the “EU may fall back into recession, as the new plan that was delivered by European leaders last week has not eliminated the risk of a breakup”.  The 17 euro nations will probably show negative growth this year-and very little growth for 2012.

Asian equity markets were soft overnight-but European equity markets are in positive territory.  US Futures are also higher at this time.

Oil,Gold and Silver are all higher today.

HAVE A GREAT DAY & GOOD LUCK