Overnight Points of Interest
2012 October 19 by Graham
Good morning
Overnight
# European equity markets continued their push higher however a ‘leaked’ earnings report from Google reversed early gains and sent U.S. bourses lower. The EuroStoxx600 rose 0.19% whilst the S&P500 fell 0.23%. The Nasdaq, where Google is listed, fell 1.01%
# In a reputed ‘oops’ by the printer that handles its quarterly earnings work, Google’s earnings were released early. Shares of Google, the world’s No.1 Internet search engine, declined 9 percent for a loss of about $19 billion in market capitalization before trading was halted by Nasdaq. When shares resumed trading they recovered slightly to trade at $697 shortly before the close, down $58.49 or 8 percent on the day.
# Spain held a successful bond auction with the nation selling more than its maximum target. The country’s 10-year yields dropped to the lowest level since April as German Chancellor Angela Merkel told lawmakers in Berlin that stability was taking hold after three years of crisis in the euro area. Spanish securities have surged this week after Moody’s Investors Service said it would keep the country’s credit rating at investment grade. Spain’s benchmark 10-year yield fell 12 basis points, or 0.12 percentage point, to 5.35.
# The US Philadelphia Fed index returned to positive territory for the first time since April coming in at +5.7 vs. 1.0 expected
# U.S weekly jobless claims fully reversed the unlikely 30k improvement seen last week rising back to around trend at 388k
# UK retail sales rose 0.6%m/m in September (ex-fuel), double analyst expectations.
# Talk circulated that Germany has already decided Greece will get the next €31.5b aid tranche.
# Corn gained 2% along with Soybeans on signs that demand was likely to increase for the drought affected U.S stocks. Hopes that farmers in Brazil and Argentina will produce large harvests to help ease short global supplies of corn and soybeans were setback on news that those regions were getting either too much or not enough rain.
Ahead
# NZ Visitor Arrivals
# NZ Credit card Spending
# European Economic Summit (continues)
# U.S Existing Home Sales
# AB’s v Wallaby’s ( $1.12 v $5.50 at the TAB doesn’t augur too well Dingo’s coaching career).
Have a great long weekend
G.
Edge Capital Markets Limited, a specialist advisor in Futures – FX – CFD – Options – Shares – Gold – Silver – Commodities
Overnight Points of Interest
2012 September 17 by Graham
Overnight
# Equity markets took a breather surrendering some of the recent strong gains in a general risk off environment. The EuroStoxx600 fell 0.34% and the S&P500 a similar 0.31%.
# The U.S. Empire Manufacturing Index came in sharply weaker than forecast at a contractionary reading of -10.41 versus forecast of -2.0 and a previous -5.85.
# Capturing the market attention, Spanish bond yields jumped 0.20% as we approach crucial auctions with still no word from Madrid regarding the long awaited bank bailout request. The ECB’s Coene raised the spectre of troubles ahead saying “Spanish yields likely to rise very quickly if doesn’t submit to assistance program”.
# In commodity markets the materials sector lead declines as J.P. Morgan analysts downgraded several steel-related stocks to “neutral” from “overweight,” saying weak steel demand undercuts the shares’ prospects.
# Crude Oil also fell sharply late in the session dropping 2.4%.
# The JPY continued to weaken following last week’s sharp reversal signal, and ahead of expectations that the BOJ will take some further easing action following their 2 day meeting which starts today. After testing 77.00 last week USD/JPY rose to nearly 79.00 overnight.
# U.S. soybean futures tumbled the daily trading limit on Monday, posting their biggest percentage drop in nearly a year on selling sparked by anecdotal accounts of better-than-expected harvest yields in the Midwest farm belt. Corn at the Chicago Board of Trade tumbled to a more than two-month low while wheat sank 5 % under the weight of the soybean market, which was considered to be the strongest fundamentally of the three.
Ahead
# Australia RBA Monetary Policy Meeting Minutes
# RBA Assistant Gov. Debelle speaks
# Chinese Direct Foreign Investment
# UK Inflation
# German ZEW Economic Sentiment Survey
Edge Capital Markets Limited, a specialist advisor in Futures – FX – CFD – Options – Shares – Gold – Silver – Commodities
Overnight Points of Interest
2012 August 20 by Graham
Overnight
- Global equities meandered through another northern hemisphere holiday affected session. Consolidating on what has been a wonderful 6 week rally, the EuroStoxx 600 slipped 0.49% whilst the S&P500 effectively ended flat.
- The EUR/USD was the main mover initially dipping then rallying on comments regarding the possibility of an ECB bond buying program. Germany’s Der Spiegel magazine had reported over the weekend that the ECB is considering buying bonds of struggling euro-zone countries when those yields exceed 10-year German bund yields by a specified amount. However, an ECB spokesperson last night said that it was “misleading” to report on decisions that haven’t been taken yet. Germany’s finance ministry chimed in saying it was unaware of any yield-capping plans. The EUR/USD dipped to 1.2295 but then reclaimed Monday morning’s opening level of 1.2350 by the end of the overnight session.
- The report also prompted peripheral bond yields to decline to one-month lows. Spanish 10-year bond yields dropped 18 basis points to 6.31%, while Italian 10-year yields fell four basis points to 5.78%
- The U.S. July Chicago national Activity Index improved marginally, grinding up to -0.13 from a previous -0.34
- The grains complex moved sharply higher as the annual ‘crop tour’ got underway and the corn harvest begins. Scouts came across field after field where drought affected corn had been cut for on farm cattle feed meaning less corn for the broader harvest. Soybeans rallied to a one-month high on Monday while corn prices were the highest in 10 days as the severe damage from the worst drought in half a century became increasingly clear.
- Facebook Inc. reversed losses to rise 5%. Earlier, it touched an all-time intraday low of $18.75, less than half the social network’s initial public offering price of $38.
Ahead
- N.Z Visitor Arrivals
- Australian Monetary Policy Meeting Minutes
- NZ Q2 Inflation Expectations
- NZ Credit Card Spending
Edge Capital Markets Limited, a specialist advisor in Futures – FX – CFD – Options – Shares – Gold – Silver – Commodities
Overnight Points of Interest
2012 July 5 by Graham
Overnight
# A raft of monetary policy action from central banks around the world failed to lift stock markets. The Eurostoxx600 fell -0.15% and the S&P500 ended down 0.45%.
# In an rarely seen confluence of activity, the People’s Bank of China cut 1 year reference rates between 0.25/0.31%, the Bank of England left its base rate unchanged at 0.5% but added another GBP50 bln of asset purchases (QE) and the European Central Bank cut the main refi rate by 0.25% to 0.75% but more importantly cut its deposit rate by 25bps to 0%, presumably to encourage banks to lend to one another rather than leaving it with the ECB.
# At the ECB press conference President Draghi reminded the market of why the action was forthcoming saying “economic growth continues to remain weak with heightened uncertainty weighing on confidence”.
# Despite the ECB action the Spanish/German 10 year spread pushed back toward record highs at 5.39%.
# The EUR was pounded against all comers on the ECB news. EUR/USD fell from 1.2530 to 1.2390 whilst NZD/EUR surged to new all-time highs at 0.6500 from .6400 yesterday.
# The US ADP employment report provided a bright spot amongst all the gloom coming in at 176k vs. 100k expected.
# U.S initial jobless claims countered the ADP report a touch coming in at 385k vs. 374k expected.
# ISM non-manufacturing (services) index; 52.1 vs. 53.0 expected.
# Gold, being particularly responsive to thoughts of more monetary creation from the FED, fell sharply in response to the better ADP report as the solid job growth was thought to lessen the prospects of FED action.
# Corn and other grains again surged higher as the National Weather Service issued excessive heat warnings from Idaho to Ohio. Dec Corn jumped 5% whilst Dec Soybeans jumped 3.5%.
Ahead
U.S. Non-Farm payrolls
Edge Capital Markets Limited, a specialist advisor in Futures – FX – CFD – Options – Shares – Gold – Silver – Commodities