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.6.2011

Good Morning:

Risk 0ff after yesterday’s late afternoon announcement by S&P that they are putting 17 European countries on a negative credit watch.
This negative watch may lead to possible downgrades.
In other S&P news-they have reaffirmed China’s Aa/A-1+ rating.
S&P seems to be interested in politics again, after downgrading the US this summer.  S&P commented that the “continued disagreements among European policy makers” was a main reason for the downgrade warning.  Many feel that S&P should back off-as the downgrade watch just complicates solving the EU debt crisis.
With the EU meeting for yet another summit in Brussels on Dec 8 and 9-analysts questioned the timing of the S&P move.
Ahead of the summit-German Chancellor Merkel and French President Sarkozy will present a plan to rewrite the EU’s governing treaty to enforce tighter economic controls over member countries.
The crisis has already led to bailouts for Greece,Ireland and Portugal-and it looks like Italy is next in line.

World equity markets were mostly lower-but US futures are slightly higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-November.30.2011

Good Morning:

The euro dropped early in the overnight session (1.3258).  During this time comments by a representative from Peoples Bank of China regarding a cut in reserve ratios set by the government,  this sent the Shanghai index down 3.3%.   Then comments by a Italian regulator that there is a risk of a euro breakup if the ECB does not change it’s role, and get more deeply involved in the Euro Zone’s financial crisis caused the single currency to loose steam.

Irish PM Kenny stated that he sees “real and present danger” from the current EU crisis.  He feels that the crisis is spiraling out of control-and European leaders must make decisive actions and decisions. 
EU finance minister are going to look at the IMF and not just the ECB to help out during this crisis.  This comes on the heels of conceding that the bailout fund has missed it’s target.

ADP payrolls printed at 206K-much better than the 130K the street had predicted.

Today we have Chicago PMI data-and the Beige Book will be released at 2PM this afternoon.

HAVE A GREAT DAY & GOOD LUCK

PBOC adviser says CPI to slow to 2.8% next year

Economic Growth will be 9.2% this year, according to Chinese Central Bank Adviser Li Daokui.

Bobbys Corner-Open Market-October.28.2011

Good Morning:

The Forex markets were in consolidation mode in overnight trading after yesterday’s 200 point rally in the EUR/USD pair after the EU summit.
China is now in the forefront, as the leaders of the EFSF are in Asia looking for commitments of capital for the fund.
Reports show that China already has a 600 Billion Euro stake in the region-so it seems likely that they will have interest in continuing to support the European credit markets.
In other European news-Spain’s unemployment rate rose to a 15 year high-climbing above 21 percent.  This is the highest level in the Euro Zone, and most certainly puts a damper on any recovery in the regions 4th largest economy.
The GBP took advantage of the nervous markets and rose-as investors look at UK assets for relative safety.

Asian equity markets rose-as European equity markets were lower-and US Futures are lower at this time.
Oil, gold, and silver are all lower at this time.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

Citigroup’s Shuang Ding comments on China

* Inflation rate may reach 6% by mid-year

* May end tightening earlier than other EM nations

* Stocks attractive on valuation, liquidity

Geithner on the Wires

Says:

• U.S, China making ‘progress’ on economic ties
• ‘Promoting changes’ in china policy direction
• ‘Gradual improvement’ in global economic outlook
• Sees China moving toward ‘more flexible exchange rate’

Bobbys Corner-Open Market-April.13.2011

Good Morning:

The EUR/USD pair tried to take out 2011 high-but feel short, with the pair hitting 1.4519 before settling back into the 1.44 handle.
Reports that China would continue to buy Spanish bonds helped the Euro overall.
The JPY lost ground as data showed that the Euro Zone’s economy seems to be improving, and equity markets rebounded-making investors seek higher-yielding assets.
With global economies on the road to recovery, there is cause to believe that the stock and commodity markets should stay robust in the near future, which may slow demand for the safe haven of the JPY.

Today we have data on US Retail Sales-and President Obama will discuss his plans for the new budget at 1:30 this afternoon.

Equity markets were higher across the board-and US Futures are also higher today.

Oil:$106.65                                                  Gold:$1460.70

HAVE A GREAT DAY & GOOD LUCK

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