Bobbys Corner-Open Market-April.23.2012

Good Morning:

Risk Off-as Germany’s April flash manufacturing PMI printed at 46.3 versus 49.0 that was forecasted.
This was the largest contraction since July 2009.
This report is somewhat of a shocker-and not a great sign for the Euro Zone’s overall economic situation.
Dutch April business confidence -3.3 from -2.6 in March.
Dutch/German 10 year bond spreads widen to 72 from 61.
French April manufacturing industry morale-95 down from 98
Italy April consumer morale-much lower at 89 from March’s read of 96.3-this is the lowest reading since January 1996.

Is this problem starting to reach some of northern Europe too- Let’s hope not!

Gold, Silver and oil are all lower.

World indexes were all lower-and US Futures are pointing to a lower opening this morning.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.19.2012

Good Morning:

Better than expected Spanish bond sales helped the euro.
Spain sold 2 and 10 year bonds.  The 2 year yield will be 3.463% versus 3.495%.
Spanish 10 year bonds yielded 5.743% versus 5.403%.
Even though the 10 year yield was higher than the last auction-it stayed below the key 6% level.
Spanish/German 10 year spread widens to 421 bps from 410.
Italian/German 10 year spread widens to 390 bps from 376
French/German 10 year spreads widens to 140 bps from 129

Oil is trading under $103/bbl
Gold & Silver are also lower.

Asian and European equity markets were mixed-US Futures are higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.18.2012

Good Morning:

GBP took center stage overnight-as the GBP hit a 19 month high versus the euro after MPC minutes showed that members voted 9-0 to keep rates unchanged, and 8-1 to keep QE at 325bln GBPs
Better than expected UK employment data also helped boost sterling.

In European news:
German auctions results went very well.
Spanish home prices fall -3% in Q1.  Drop is -7% from a year earlier.
Things just continue to get uglier in Spain.
Comments from Sarkozy and Lagarde continued to put pressure on the single currency.

Gold and Silver are all lower
Oil is higher-over $104/bbl
Asian equity markets were higher-Europe is mostly lower-and US Futures are also mostly lower

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.16.2012

Good Morning:

Credit issues in the Euro Zone are still the main course in the marketplace.

Spanish 10 year yield rose to 6.10%, this is their highest level since December.
Spanish/German 10 year government bond spreads rose to 440 bps.
Spain’s Rojoy made comments that Spain must cut deficit, Spain must act faster than was originally thought, and no one should
questions Spain’s commitment to the euro.
These comments are all repeats of the same story in Greece just a few short months ago.

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

Oil is lower-at $102.37 bbl.
Gold and Silver are also lower.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open Market-April.13.2012

Good Morning;

Friday the 13th-and European markets are not happy:

ECB data shows that Spanish banks borrowed 316.3 bln euros in March compared to 169.9 bln in February.  This accounts for 28% of all ECB borrowing-quite a staggering number.
Spanish and Italian 10 year bonds saw their yields rise overnight.

In China the government announced Q1 GDP-it was a “mere” +8.1% compared to +8.9% in Q4.  It was forecasted to be  +8.3%.
Retail sales in April were +15.2% from a year ago, industrial production up 11.9% from a year ago.
This is data that the rest of the world would dream to have.

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

Oil trading at $103.30 bbl.
Gold and Silver are all lower.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

Bobbys Corner-Open Market-April.12.2012

Good Morning:

The greenback was mixed versus most of their counterparts.

Italy saw their cost of borrowing increase to the highest levels since January 2012 at today’s bond auction.  The auctions are well received,  but yields in Spain and Italy along with most of the EU are moving higher.  Concerns over debt contagion from Spain is putting pressure on the bond markets throughout the EU.
Greek January unemployment rose to 21.8% from 21.2% in December.

Some good news out of the FOMC:
It seems that both Dudley and Yellen have stated that their is still support of keeping interest rates low through 2014-and longer if necessary.  Also they stated that the door for additional QE is open.

Oil is back over $103/bbl.

Asian equity markets were higher-along with Europe and US Futures.

Gold is slightly lower-while silver is higher.

HAVE A GREAT DAY & GOOD LUCK

Bobbys Corner-Open market-April.11.2012

Good Morning:

A better day for the Euro Zone in general.
Spanish/German 10 year bond yield spread narrows to 405 bps from 424 bps. 
Italian/German 10 year yields narrowed to 372 bps from 395 bps.

Italy auctioned off 11 billion euros of 91 and 361 day paper.  Full take up-but yields are almost double what they were in the last auction.
Germany only sold 3.87 billion euros of 10 year bonds-out of a proposed 5 billion. 
Markets didn’t like that, and the auction had poor cover even though the yields increased.
The single currency initially sold off, but has since strengthened again.

Oil is trading in the mid $101/bbl
Gold and Silver are lower-as are most commodities.

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

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

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