12 March 2013

Posted by Graham Parlane on 12 March 2013

Good morning

Overnight

# The EuroStoxx600 held up relatively well in the face of what can only be termed fairly bleak Eurozone data. The index ended the session down 0.10%. Meanwhile the S&P500 rose for the 7th straight day and the 9^th in 10, with broad based gains in the absence of fresh U.S data. The S&P500 ended up 0.32% (the U.S. moved to summer time over the weekend meaning the earlier exchange close in our terms).

# Final Q4 Italian GDP data came in at -2.8% y/y, confirming that the country remains deep in recession.

# Similarly, Portugal Q4 GDP fell -1.8% q/q against a previous -0.9%, meaning GDP y/y worsened to -3.8% from previous -3.5%.

# French Industrial Production fell more than expected in January as Europe's second-largest economy teetered on the brink of its third recession in four years. Output from factories, mines and utilities fell 1.2 % from December. Economists had expected a 0.2 % drop.

# The NZD was the strongest of the G-10 currencies putting on almost a cent against the USD over the last 24 hours. From a low 0.8190 the kiwi hit 0.8285 moments ago.

# Pimco, the world's biggest bond fund continued to cut its U.S treasuries investments, following the CEO Bill Gross's call of a year ago that the bull market in bonds was over. U.S treasuries now make up only 28% of their investment portfolio (yesterday's chart analysis supports this move). Gross, founder and co-chief investment officer wrote Feb. 27 in his monthly investment outlook that corporate credit and high-yield bonds are somewhat exuberantly and irrationally priced after years of record-low benchmark interest rates from the Federal Reserve. Further, Gross increased his expectations for U.S growth this year from 2% to 3%, again suggesting that U.S yields are likely going a lot higher yet.

Ahead

# Japan Monetary Policy Meeting Minutes

# NAB Australian Business Confidence

# REINZ House Price Index (anytime over the next 2 days)

# UK Industrial Production.

# UK Trade Balance

# UK NIESR GDP Estimate

Regards G.

BBY (NZ) Limited, a specialist advisor in Futures - FX - CFD - Options - Shares - Gold - Silver - Commodities

Tags: Bonds, Broker, CFD trading, CFDs, Equities, Europe, EuroStoxx, Eurozone, Foreign Exchange, France, Futures, Futures trading, FX, FX trading, G10, GDP, Industrial Production, Italy, NZD, Other, PIMCO, Portugal, S&P, Trader