Eurozone Current Account, PMI Data Due at 4AM

Bobbys Corner-Open Market-March.3.2011

Good Morning:

The GBP was lower after UK home prices fell, and the service sector dropped more than expected-thus reducing the chance for an interest rate rise anytime soon.  With this data, any increase in UK interest rates may well delay and hamper economic growth in the UK.
The EuroZone showed more upbeat data-with retail Sales in the region rising by .4%-which was expected.  PMI from Spain and Ireland showed that the region is picking up economic activity and showing signs of strength in the region’s core economies.
ECB President Trichet will hold a news conference this morning, and the markets are anticipating a more hawkish assessment of the EZ moving forward.

World equtiy markets are higher-as are US Futures at this time.

Oil:$ 101.00                                                                       Gold:$1429.50

HAVE A GREAT DAY & GOOD LUCK

Fed’s Plosser on the Wires

Says:

• Congress needs to commit to stabilize U.S. debt
• U.S. needs ‘credible plan’ to contain deficit
• Long rates may have increased on outlook for economy
• ‘Caution and patience’ can be virtues in policy
• Doesn’t see risk for Europe as ‘substantial’ for U.S.
• ‘Independence of the fed is extremely important’
• better consumer spending, sales not result of QE2
• Fed balance sheet has ‘got to shrink’
• State, Local government problems to be eventually fixed
• Fed needs to see if inflation expectations are stable
• Inflation expectations ‘certainly’ aren’t falling

Bobbys Corner-Open Market-May.12.2010

Good Morning:

 The GBP  traded lower, as the BOE stated that risks to the UK economic recovery have increased.  The new UK coalition lead by David Cameron has renewed pressure to tackle  the UK’s deficit problem, and speculation  mounts  that the new coalition will struggle to pass legislation to cut its budget deficit.

In  Euro Zone news, the Spanish government caved in to pressure from the EU to reduce their spending., and cut public wages 5%.  Spanish government members will take up to a 15% cut in wages as Spain desperately tries to reduce their deficit.  As investors sort out the details of the $1 trillion loan package pledged the other day, the marketplace is realizing that the package will not solve the root of the sovereign debt issues without major concessions by the countries involved.

Asian equity markets were mixed, European markets are higher, and US Futures are pointing to a higher opening this morning.
Commodities are higher in general.

Oil:$76.09                                               Gold:$1241.90

Today’s Data:

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.18.2010

Good Morning:

The greenback rallied overnight as Euro Zone officials fight over the details of any bailout for Greece.  It seems that there is a major rift between EU Finance Ministers in regards to how much, if any, funds should be available to assist Greece with their budget deficit.  Greek bonds fell as  EU regulators are investigating possible use of swaps with banks to conceal the debt problem.
Also helping the USD is speculation that the Federal Reserve may be one of the first major central banks to remove some of the stimulus measures that have been in place.  The speculation is fueled by investors who feel that the US economy is on the road to recovery.

World equity markets are higher, and US Futures are slightly lower at this time.
Commodities are also lower this morning.

Today’s data:

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-Feb.10.2010

Good Morning:

I have been away at the World Money Show in Orlando, FL- I am now back in NY with the snow falling.

The USD continues to benefit from the crisis in the EuroZone.   Greece is trying to work out a deal with either the EU or to get direct assistance from Germany.  Greece is a major political concern for the EZ. The EZ cannot afford to allow Greece’s debt to be placed below investment grade levels, for fears that this could also effect  other Southern European economies.

Fed Chairman Bernanke is expected to testify before Congress today-but due to the inclement  weather, his testimony may be in written form.

World equity markets rose-as speculation that a “rescue package” for Greece is taking root.
Commodities are mixed.

Oil:$73.96                                          Gold:$1080.70

HAVE A GREAT DAY & GOOD LUCK

EUROZONE’s Almunia on the Wires

EU’s Almunia: Central and Eastern Europe face funding challenges ahead

EUROZONE’s Almunia Comments

EU Almunia: Exiting recession, economic freefall is over

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