Bobbys Corner-Open Market-March.6.2012

Good Morning:

The Reserve Bank of Australia left their key interest rates unchanged at 4.25%.  The RBA stressed that there could be a call for lower rates-if the global economy continues to slow.  They are also concerned about the slowdown in Chinese growth-and will monitor this very closely.

Data out of the EU was not very pretty.  Q4 GDP was .3% lower.  Exports dropped .4%, after a 1.4% increase for Q3.  Consumer spending was down .4%.  It looks like Europe is in it’s 2nd recession in the past 3 years-as the Greek issue takes down the entire region.
The IIF (International Institute of Finance), stated that the disorderly Greek bailout could cost up to 1 trillion euros.

In US political news-today is “Super Tuesday” for the Republican Presidential nomination.  11 states and 400 delegates will be up for grabs today.  The nominee will need a total of 1144 delegates to win the Republican Presidental nomination.  Mitt Romney is looking to gain a distinct advantage, so that he can focus on winning the election in November.

World equity markets are lower-as are US Futures.
Commodity markets are also lower across the board.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-March.5.2012

Good Morning:

In a surprise comment by the Chinese Premiere Wen Jiabao-China is lowering their growth target for 2012 to 7.5% from 8%.  Growth in China was at 9.2% in 2011, and 10.4% in 2010.  They have also set a 4% target on inflation.  With the euro zone crisis keeping global economies slow, the world’s 2nd largest economy expects their export sector to slow even further.
On the heels of these comments-Asian equity markets dropped, European  stocks are lower, as are US futures.
Gold, Silver and most commodity markets dropped-as China is the largest user of raw materials.
WTI is mostly flat-while Brent is a bit higher.

Should we speak about The Euro Zone- sure why not!
New reports show that if Greece fails, it could cost upwards of 1 trillion euros-WOW!
Spanish regions (Catalonia and Andalusia) balk at new 2012 deficit targets-no surprise there.
German Finance officials let it be know at last Friday’s EU Summit that they have run out of patience.

Oh Well- and it is only Monday.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.15.2012

Good Morning:

A very interesting overnight session.

Greece:
Conservative Party leader Samaras stated that a commitment letter pertaining to the new measures for the 2nd bailout package will be sent today. The letter will keep negotiations going, and hopefully the EU’s Finance Ministers can agree to the package-and start by next Monday’s Eurogroup meeting.

Iran state TV stated that Iran will cut oil exports to 6 EU nations: Netherlands,Greece,Portugal,Italy, France and Spain.  Portugal’s only refiner, GALP, says that they do not import Iranian oil, so this will not effect them.  Confusing !

China’s Central Bank leader reiterated their support of the Euro, and committed to continuing buying euro denominated assets.  China has always been a supporter of the single currency-as China is always looking for a viable reserve currency besides the USD.

World equity markets and US futures are higher.

Oil is higher as Iran continues to rattle the international markets.  With WTI at$101.40/bbl.

Gold and silver are lso higher today.

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.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

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