Bobbys Corner-Open Market-January.11.2012

Good Morning:

A fairly lackluster overnight session greets us this morning.
German GDP came in at 3%-which was widely expected.  Analysts are not overly optimistic on growth in 2012-and expect German GDP to grow under 1% for the year.  With continued turmoil in the Euro Zone and the sovereign credit crisis that is not going away-the prospect for growth is weak.  The German economy has been resilient in the past-time will tell.
Continued investor confidence in the German economy allowed the sale of 5 year bunds (bonds) below 1% for the first time.
Italian bonds fared well during the morning session-with 10 year yields below 7%.
Comments by Fitch Ratings that the Euro regions debt crisis will worsen unless the ECB boots bond purchases sent the Euro lower.

Asian equity markets were higher-while European equity markets are lower-as are US Futures.

Oil is lower (still over &101/bar)-Gold and Silver are both higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-December.16.2011

Good Morning:

We see the end of the week ending with a weaker greenback and JPY.  With the US economy slowly showing signs of improvement-investors demand for safer assets lessened.

Following the downgrades by Moody’s and S&P-Fitch also downgraded Bank of America, Goldman Sachs, and Citigroup from the US.  European banks that were also downgraded were Barclays, Credi Suisse, Deutsche Bank and BNP.  The downgrades come after all three rating agencies completed their reviews of the financial sector.

Rumors are swirling around the markets that S&P is considering a downgrade of Italy and Spain-while leaving France alone-at least for this round.

World equity markets along with US Futures are all higher-as are commodity prices.

I will be on holiday until Dec. 27-so I would like to wish everyone a Merry Christmas.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

Fitch says France’s AAA status continues to be underpinned by a high value added and diverse economy

• REcent adoption of fiscal measures enhances the credibility of the consolidation program from the government.
• Additional measures are still likely to be necessary if 3% GDP target is to be met
• THey add that French banks do not need capital injection

Bobbys Corner-Open Market-April.5.2011

Good Morning:

The Euro lost steam overnight after Moody’s downgraded Portugal’s credit rating for the 2nd time in 3 weeks, as speculation that Portugal will need to seek a European bailout.  Fitch Ratings also downgraded Portugal on April 1st to BBB-, the lowest investment grade, and kept the country on “negative watch”.  “Moody’s rating action was driven primarily by increased political, budgetary and economic uncertainty”.  With Portugal’s borrowing costs surging, markets are anticipating that they will have to take the same road as Greece and Ireland, and seek a bailout.
China’s central bank rose thier lending and deposit rates by 25 basis points to control inflation in the world fastest growing economy.
This is the 4th time since October 2010 that the Chinese Central Bank has raised prices. 

World equity markets were lower-as are US Futures at thhis time.

Oil:$108.21                                                       Gold:$1436.50

HAVE A GREAT DAY & GOOD LUCK

Fitch Downgrades BNP Paribas

Fitch Downgrades BNP Paribas to AA- with a stable outlook.

Fitch Downgrades Spain

Fitch downgrades Spain to ‘AA+’  from ‘AAA’ Outlook Stable

“Fitch says Spain’s economic process will be more difficult and prolonged than for other AAA rated sovereigns”

Fitch sees spain government debt likely reaching 78% GDP by 2013

Fitch: Spain Adjustment to cut growth rate over medium-term.

Euro trading lower on the news.

Bobbys Corner-Open Market-Nov.10.2009

Good Morning:

The worst news of the evening was Fitch Ratings stating that the UK is the most at risk of any of the major economies from losing their  AAA credit rating.  The concern is mainly about their budget deficit, as the global recession took a bit out of UK tax revenues and caused a large jump in state sponsored welfare costs.

The GBP dropped overnight, and the USD was mostly weaker with the EUR/USD pair reaching 1.5020.

Asian equity markets were higher, and European stock indexes were mixed.  MBIA (the world’s largest bond insurer), missed estimates for Q3.  US Futures are lower at this time.

Oil: $79.35                              Gold:$1099.40

HAVE  A GREAT DAY & GOOD LUCK

NZDUSD has a volatile day, but could be topping on Fitch downgrade

Fitch downgraded the outlook for New Zealand’s AA+ sovereign credit rating to negative from stable and in the process warned that severe economic imbalances mean the government should dramatically tighten its purse strings.

The surprise move led to a sharp fall in the value of the NZDUSD.   However, just when you think it is safe to go outside (or short NZDUSD) the pair retraced off the 38.2% support level and rebounded back higher. 

However, the pair was not able to extend to new highs (or above yesterdays closing levels) and the price has started to move lower again  – albeit at a slower pace.  The 0.6388 level will be eyed on the downside.  A break should lead to lower levels, while a bounce off the support puts the memory of the downgrade a distant memory as the market focuses on other fundamentals.

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