Bobbys Corner-Open Market-May.16.2012

Good Morning:

Cable lost some steam after BOE’s King made comments that the UK recovery will be “slow and uncertain”.  With the UK financial sector
exposed to the Euro Zone and their current crisis, there will be continued pressure on their economy.
Inflation in the UK inched higher-while growth in the nation slowed.

The Euro lost steam-and dropped below the 1.27 level in overnight trading.  The continued concerns over Greece, and that Spain will face “astronomical” borrowing cost (according to Rajoy)-there is a risk that the markets may stop lending to the country-which would cause a major credit crisis throughout the region.  These components all lead to the drop in the euro.

Gold is lower-at $1540/oz. Oil is also lower.
Asia equity markets were lower-and Europe is mostly higher except for the FTSE.
Dow Futures are also higher at this time.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.10.2012

Good Morning:

Worries over rising Spanish borrowing costs pushed the euro lower.  Spanish 10 year bonds hit a yield of 5.9% from 5.8% earlier.
Spanish/German 10 year government bond spreads rose 424 bps from 402 bps earlier. Bank of Spain’s Ordonez stated that he expects more bank mergers in 2012, banks may need additional capital, Spanish exports are growing, and Spanish banks have  made 112 bln euros in provisions from 2007-2011.  These are just a few reasons why many economists believe that the country will be the next country in the euro zone to need a bailout.
Italian/German spreads on 10 year government bond yields widened out to 391 bps from 371 bps earlier.

Gold and silver are higher.

Oil is lower@ $102.15 bbl.

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

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-March.30.2012

Good Morning:

As this is the last day of the month/last day of Q1-and this is also the last trading day for the Japanese fiscal year.

New drama from the Greek front:  Greek PM does not rule out a possible new bailout package-if the austerity measures in place do not help to stabilize the economy.  I do not think that this is news to anyone.
In other news: Spanish February retail sales were down 6.4% y/y-this was expected.
French PPI at +.8-which is higher than the .5% that was expected.

Nouriel Roubini-the economist known as De. Doom predicted that the euro will need to go to parity with the USD in order for Euope’s economy to grow.  remember that is his opinion.

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

Oil, Gold and silver are all higher.

HAVE A GODD DAY & WEEKEND & GOOD LUCK

Bobbys Corner-Open Market-March.27.2012

Good Morning:

Lots of activity in the overnight session-but not a lot of price movement.
The USD took a slight hit after comments from Fed Chairman Bernanke that he plans on keeping the monetary policy “highly accommodative” for the foreseeable future.

In the Euro Zone-the Portuguese/German government bond yield spreads have narrowed to under 1000 bps-this is the first time since September that the spread has been below 1000.

Crude oil is again trading around the $107/bbl level.  Today the API (American Petroleum Institute), will announce their weekly inventory report, and it is expected to show inventory at 2.75 million barrels-which may damper the run up by the oil bulls.
With crude hitting record highs against the GBP and Euro-there is concern that this could cause a Europe wide recession.

Gold and Silver are higher at this time.  Oil is steady-just below $107/bbl

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

HAVE A GREAT DAY & GOOD LUCK

ECB’s Liikanen on the wires

* All ECB crisis measures are temporary

* ECB has done its part, now governments must do theirs

* Downside growth risks stem from debt crisis

* No rate move discussed at last month’s meeting

* ECB and governments must separate responsibilities

* Eurozone still in a crisis that is long and deep

Eurozone Q4 employment change q/q -0.2% vs -0.2% expected and prior -0.1%

Q4 Labor costs 2.8% vs 2.3% expected

Eur/Usd continues to trade 1.3050-60.

ECB’s bulletin sees signs of stabilazation in Euro area economy

* upside risks prevail on inflation

Eur/Usd jumped to 1.3060 on news.

E/Z CPI y/y 2.7% vs 2.7% expected; Core CPI y/y 1.5% vs 1.5% expected

Eur/Usd up slightly to 1.3065 on news.

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