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

Bobbys Corner-Open Market-January.18.2012

Good Morning:

The FX markets on a wild ride in overnight trading-as the Euro rose during the Asian session-as rumors of a possible deal with Greece led the single currency higher-only to be sold off after Fitch threatened to downgrade Italy by 2 notches.  Then the euro picked up again after reports that the IMF may increase their their lending facilities.

The World Bank has slashed it’s global growth forecast.  The recession and continued credit crisis in Europe threatens not only the euro region, but will hurt both the emerging markets (India-Mexico), and major markets also.

Oil and Silver are all higher at this time, Gold is flat.

Asian equity markets were higher-Europe is mixed-and US Futures are higher at this time.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open market-January.13.2012

Good Morning:

The Euro dropped after disappointing demand for the 3 year Italian Bond.
Next week, Italy auctions off 10 year bonds-and the markets are hoping that there is enough interest in the bond sale.
The only bright side of the Italian auctions is that the yields have remained within acceptable levels.

 In North American news-the US Trade Deficit jumped up to $47.8 Bil in November from an expected $45 Bil.
Often, economists contend that a wider US deficit shows improved US demand, though the data shows a significant slump in exports to Europe. 
 
Asian equity markets were higher-Europe is mixed-and US Futures are lower at this time.

Gold is lower-but Oil is a bit higher.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.12.2012

Good Morning:

Spanish and Italian bond auctions fared very well-with yields on the Italian bonds falling up to 40bps in the wake of strong demand.
The euro rose to the 1.2750 level-which is where we are sitting on presently.

As expected the ECB left interest rates unchanged at 1%. 
The BOE also kept interest rates unchaged at .5%-and left the asset purchase program in place.
Fitch Rating’s Riley stated that Italy faces a “material risk” of a downgrade by the end of the month.

US Treasury Sec’t Geithner is in Asia looking for support on oil sanctions against Iran. He should be in the US working on how to rebuild the US economy-not traveling the world.
China has rejected limiting oil imported from Iran-but Japan will be joining the sanctions.  Japan has been in talks with Saudi Arabia to replace any oil that they will not get from Iran.

Gold-Silver & Oil are all higher.

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

HAVE A GREAT DAY & GOOD LUCK

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-January.10.2012

Good Morning:

Rumors are running through the market that the Emerald Isle will need a second bailout.  Ireland is struggling with the interest it pays on the 30 billion euro notes that were issued to deal with the collapse of Anglo Irish Bank.  Ireland is currently paying 6% on this money-and needs to reduce this interest rate as soon as possible.  Economists are concerned that Ireland may be slipping back into recession-as data from the Emerald Isle is showing increased signs of economic weakness.
As usual the markets shrugged off the latest EU sovereign debt issue-with equities rising in all European markets.
Fitch ratings commented that Italy’s credit rating may be in jeopardy after the latest review is completed.

World equity markets rose across the board-and US Futures are also pointing to a positive opening this morning.

Oil is higher (trading over $103/bar)-and Gold and Silver are also higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-January.4.2012

Good Morning:

A report showing that inflation slowed in Europe has prompted investors to push the ECB to reduce interest rates-as a means to get the stalled European economy back on track.
The single currency dropped to the lowest level in 11 years against the JPY.  Germany sold 10 year bonds 4.06 billion worth at an average yield of 1.93%.

Asian equity markets were higher-but European equity markets dropped as the marketplace realizes that the banks will need additional capital to boost their balance sheets in the wake of the debt crisis that is strangling Europe.

It seems that the ECB is out in the market buying Italian and Spanish bonds-no surprises there.

Oil trading over $102/bar, gold and silver are slightly lower at this time.

HAVE A GREAT DAY & GOOD LUCK

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