Bobbys Corner-Open Market-April.13.2012

Good Morning;

Friday the 13th-and European markets are not happy:

ECB data shows that Spanish banks borrowed 316.3 bln euros in March compared to 169.9 bln in February.  This accounts for 28% of all ECB borrowing-quite a staggering number.
Spanish and Italian 10 year bonds saw their yields rise overnight.

In China the government announced Q1 GDP-it was a “mere” +8.1% compared to +8.9% in Q4.  It was forecasted to be  +8.3%.
Retail sales in April were +15.2% from a year ago, industrial production up 11.9% from a year ago.
This is data that the rest of the world would dream to have.

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

Oil trading at $103.30 bbl.
Gold and Silver are all lower.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

ECB’s Presidnet Draghi Speaking

Says:

• Steadfast commitment to price stability
• Governments need to compliment the work of the ECB
• In his speech he will focus on competitiveness
• Continued signs of ECB stabilization
• The situation in the financial markets has improved after LTRO
• Countries should use this phase to make progress
• Banks should retain earnings
• Financial system should serve real economy
• Growth will be supported by low short term rates

Bobbys Corner-Open Market-March.8.2012

Good Morning:

The ECB left their benchmark interest rates unchanged at 1%.  We will await Mr. Draghi’s press conference to get the lowdown on the EU situation.  The press conference will be at 8:30 AM EST.
The Bank of England also left interest rates uncharged-as was widely expected.
Word is that the Greek bond swap is going well, and it looks like they have about a 60% participation at this time.  The deadline is at 10PM this evening-Athens time.  The bond swap would reduce over 53% of Greek debt.  Speculation is that the goal will be met by today’s deadline.

World equity markets all posted and are posting positive results.  US Futures are also higher.

WTI oil is higher-closing in on $107/bbl.  Gold and silver along with the commodity markets in general are all higher.

Markets will be a bit on edge-as we await Friday’s payroll and employment data.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.29.2012

Good Morning:

800 European banks took advantage of the ECB’s 3 year lending program.  The ECB distributed over 529 billion euros-this exceeded the 470 billion euros that was expected. The lending plan has alleviated a credit crunch in Europe, but has it helped increase lending in the EU?
 
In US political news- Mitt Romney won both the Arizona and Michigan Republican primaries on Tuesday.  He won Arizona with a big lead-but Michigan (his home state), only gave him a 3  point lead-which is a narrow margin for a native son-His father George Romney was a GM executive and Governor  of the state.  Arizona gave him a 22 point lead.  These will all lead to the next round of primaries-Super Tuesday which will be on March 8th.

Gold is lower-but Silver is slightly higher.  Oil is trading just below $107/bbl.
Equity markets are higher-as are US Futures. 

Fed Chairman Bernanke in on his way to testify on Capital Hill this morning. He will deliver his semi annual report to the House Financial Services Committee.
Beige Book released this afternoon.

HAVE A GREAT DAY & GOOD LUCK

ECBs Stark on the Wires

ECBs Stark on the Wires

Stark Says:

• Draghi is right on whats needed in Euro economies
• The risk of Euro area breakup is exaggerated
• The euro will continue, absolutely
• There’s progress in Euro area institutional reform
• Italy, Spain, Portugal, Ireland aware progress is needed
• 500 Bln firewall is sufficient
• Market impact of me quitting was short lived
• Central bank shouldn’t do monetary financing
• Europe will overcome crisis will be stronger
• Buying of government bonds by the ECB postponed needed adjustments in higher debt countries

Bobbys Corner-Open Market-Feb.9.2012

Good Morning:

The ECB left interest rates unchanged at 1%-which was highly expected by market participants.
The BOE also left interest rates unchanged at .5%-and will increase their QE asset purchases.

The European Troika gave Greece an additional 15 days to find 300 million euros of pension cuts.  This seems to be a major stumbling block, and the process will be stalled until this issue is taken care of.

The ECB left interest rates unchanged-as the ECB is taking a “wait and see” approach to the Greek bailout deal.
Greek leaders could not come up with a full austerity plan-and the Greek Finance Minister is on his way to Brussels.  He was expected in Brussels to meet with EU leaders with a completed plan-he now goes to plead his countries case-Again-to EU leaders.

Gold, Silver and gold are all higher.

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

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.27.2012

Good Morning:

With a looming 14 billion euro payment due in March-the Greek government is in continuous talks with their private creditors to restructure their debt.  This has been the centerpiece of the currency markets for the past week.  Creditors are insisting on ECB participation in the Greek debt mess.
In other news from the Euro Zone:
Portuguese bond yields reached new highs-as market participants are in  the mindset that Portugal may need a second bailout to work out their debt mess.
Spain’s unemployment rate rose to over 22%-as the loss of construction jobs continues to hamper any employment recovery.

US  Q4 GDP rises 2.8%.     

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

Oil is higher-still below $100/bar.  Gold is lower.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

I will be out of the office next week-as I am having knee surgery.  I will hobble back on Feb 6.

Bobbys Corner-Open Market-January.26.2012

Good Morning:

With the ongoing sage between the Greek government and private investors continuing-there have been reports of the private sector accepting a interest rate of less than 4%.  This is a major barrier that will now allow Grrece to seriously revamp their debt.  Greece has a 14 billion euro payment due in March-and without the help of the IMF or ECB-they will not be able to meet this deadline.
This news pushed the EUR/USD pair into the mid 1.31 handle (1.3173).
Italy sold 4.5 billion euro worth of 3 year notes-with the lowest yield since last August.  The yield was 3.763% versus 4.853 on the last 3 year note auction.

Yesterday’s press conference by Fed Chairman Bernanke brought the possibility of a third round of QE to the markets if unemoloyment remains high-so I guess we will see more QE by the 3rd quarter of this year.
He also talked about keeping interest rates low through 2014.

Gold, Silver and Oil are all higher-as are equities and futures.

HAVE A GREAT DAY & GOOD LUCK

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