Bobbys Corner-Open Market-March.10.2011

Good Morning:

Moody’s downgraded Spain from Aa2 to Aa1-with a negative outlook. 

• Cites concerns over sustainability of Spanish govt finances
• Sees background of only moderate Spanish growth short-medium term
• Spain still has high vulnerability to market disruption
• Total cost of bank restructuring likely around 40-50 blnAs expected the Bank of England left interest rates unchanged.

  World equity markets were and are lower-as are US Futures.

  Oil:$102.59                                                Gold:$1418.10

  TIME				FOR	EST.	PRIOR
  8:30A.M.	INITIAL JOBLESS CLAIMS			5-Mar	375K	368K
  8:30A.M.	CONTINUING CLAIMS			26-Feb	3750K	3774K
  8:30A.M.	TRADE BALANCE			JAN.	-$41.5B	-$40.6B
  9:45A.M.	BLOOMBERG CONSUMER COMFORT			6-Mar		-39.3O
  2:00P.M.	MONTHLY BUDGET STATEMENT			Feb	-$225.4B	-$220.9B

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.17.2011

Good Morning:

The Yen took center stage in overnight trading-as speculation that the unrest in the Middle East will continue and spread throughout the region-thus the demand for safer assets will grow.  The nervousness through the Middle East was further increased today-as reports that Iranian warships on their way to Syria are looking to pass through the Suez Canal.  Currencies that are perceived as safe havens will be the winners in the near future-until geopolitical issues calm down.

Demonstrations for the 3rd day in Bahrain escalated with protesters demanding the ouster of the Prime Minister, and demanding a taste of democracy.  Demonstrations also continued in Yemen and Libya.

The GBP was also stronger as comments from BOE member Andrew Sentance that interest rates should rise in the near end.

World equity markets were lower-as are US Futures.

Jan 2011 CPI prints at .4% , and jobless claims increased by 25K.

Oil:$84.88                                                   Gold:$1379.80        
             

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Jan.25.2011

Good Morning:

The big news in the overnight FX markets was that the GBP was pounded after very disappointing UK GDP data.
Cold weather hurt both the construction and services sector-thus leading to the decline in cable.  Data showing that this past December was the coldest in over 100 years also attributed to the decline.  Investors are sorting out if this is an issue with the overall weakness of the British economy, or is this just a one off problem due to the weather.
This data will certainly put pressure on the BOE to come up with a plan that combats inflation and increases growth in the country.

Concerns over Spain’s debt problems-along with news that Spanish banks may need additional capital were also center stage in the FX markets.

The Fed begins a 2 day meeting today-and President Obama will make his State of the Union address tonight at 9 PM.

Today we have data on home prices and Consumer Confidence.

Asian and European equity markets are mostly mixed-and US Futures are also pointing to a lower opening this morning.

Oil:$86.70                                                                                  Gold:$1329.20

HAVE A GREAT DAY & GOOD LUCK

BOE Osborne sees rates lower for longer

The BOE Osborne is on the newswires saying the central bank has freedom to keep rates lower for longer

GBPUSD breaks sharply lower on BOE Kings comments

Bobbys Corner-Open Market-July.8.2010

Good Morning:

Both the ECB and BOE left interest rates unchanged, which was highly expected in the marketplace.  Australian employment data printed at 45.9k  versus 15.3K-and the unemployment rate declined to 5.1%.  The Australian economy continues to surge ahead-as the rest of the world tries to keep up with their positive economic momentum.

The Yen lost some ground-as stocks rallied-and investor’s demand for the JPY waned.
Worldwide stocks gained on news from the IMF that they expect global economies to grow by 4.6% in 2010 (a bit optimistic for me).  This is a revision by the IMF-as they originally made comments in April that global growth would expand by 4.2%.
US Futures are slightly higher at this time-oil rose-gold is stable.

Oil:$74.75                                          Gold:$1201.20

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-June.10.2010

Good Morning:

Congratulations to the Chicago Blackhawks for winning the Stanley Cup by defeating Philadelphia 4-3 in overtime last night.  The Chicago fans have been waiting since 1961 for a NHL championship-Congratulations.

The Euro was a touch stronger in overnight trading.  The auction of Spanish notes had higher demand than expected, and comments from China that the common currency will survive the debt crisis in the EU.  Any increase in the Euro may be limited as the ECB announces no change in interest rates, which was expected by the markets.
The BOE  also left interest unchanged in the UK.
The Aussie rose as a report showed that the country added 26,900 employees last month.  Kiwi also rose, as New Zealand raised their benchmark interest rates.

Asian and European equity markets rose, and US Futures are also pointing to a higher opening this morning.
Gold was lower, and Oil rose.

Oil:$74.94                                                        Gold:$1225.50

Today’s data:

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-March.4.2010

Good Morning:

Both the BOE kept interest rates steady.  BOE did not expand it’s asset purchasing program which was expected.
The ECB also left interst rates unchanged-and will have a conference call at 8:30 AM.
Greece began selling 10 year bonds today-pricing them with a yield of 6.39% vs.6.1% on their current bonds.
Greece’s prime Minister has promised to reduce their budget deficit by cutting spending and wages.  Today protesters occupied the finance ministry as a protest against the new proposals.

World equity markets were mostly lower-and US Futures are slightly higher this morning.

Oil:$80.76                                             Gold:$1138.40

HAVE A GREAT DAY & GOOD LUCK

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