Bobbys Corner-Open Market-October.19.2011

Good Morning:

The Euro advanced on news that the European rescue fund will get a boost-and that Germany and France support the increased fund size to ease the pressure of the debt crisis in the region.
European assets drew demand, as investors are looking for a resolution by this weekend-when the Euro Zone has a summit planned with their leaders and Finance Ministers.
The markets seem very positive that the EFSF (European Financial Stability Facility) will work, and that European leaders will come to an agrement this weekend.
In Greece this morning-demonstrations that were scheduled for today to protest increased austerity measures has turned violent in the last 1/2 hour.
The programs that took care of the Greek populous from cradle to grave are no longer fiscally possible-and the population is rebelling-but at this time there are no alternatives except to stop these entitlement programs that have sapped the nations coffers.

Most Asian equity markets were higher-and Europe is higher across the board.  US Futures are only a few points on the negative side at this time.

Today we have data on CPI and housing-but markets are squarely focused on Europe.

HAVEA GREAT DAY & GOOD LUCK

German Retail Sales Misses Forecasts

German Retail Sales came out lower than expected at -1.0 from the previously revised 0.0%.  This data was forecast to be flat again today.

Germany Cuts GDP Outlook

- Sees 2010 GDP at 0.5%
- Sees 2009 exports lower by 18.8%; up 0.9% in 2010 period
- Sees 2010 Imports down 10.9%; up 0.4% in 2010
- 2009 Avg unemployment at 3.72M; climbing to 4.62M in 2010
- German 2009 CPI at 0.3%; 2010 at 0.7%
- Still opposes additional economic stimulus measures

German Finance Minister Steinbrueck Comments

German Fin Min Steinbrueck: World economy may encounter high inflation over medium term due to recent increased liquidity; Next crisis in the works due to debt financed ‘countermeasures’ to currenct crisis – newspaper interview

ECB’s Stark on the Wires

ECB’s Stark: Lack of confidence in banking system is set to last longer than current economic downturn

German Import Prices Released

German Import Prices came out at -0.1%, up from the previous -0.5%.  A rise to -0.3% was forecast.

German Unemployment Change Released

German Unemployment Change came out at 69K up from the previously revised 50K.  A rise to 53K was forecast. 

The EUR softened up and came off session highs behind this weaker than expected employment data. 

**Note:  This data was correctly leaked about 10 minutes before the 3:55 AM official release.

UK’s Chancellor Darling on the Wires

UK Chancellor Darling: Fixing banks is a prerequisite for recovery, Goverment must continue to support economy

Next Page »