My apologies for getting this out three hours late this morning- I contribute that to some good friends who made sure I had some fun (too much) on my birthday. Yes, I’m really pulling that card! Thanks for bearing with me, and enjoy your day. The MorningSnapshot will be back at the usual time of between 6:15-6:45am tomorrow.
Sentiment is generally higher this morning (surprising without much in the way of positive economic data)with stocks up higher globally after a big beat by Apple on the top and bottom line. The dollar is declining versus most of its peers and EU peripheral yields are on the decline, except for Germany who received less bids than the maximum sales target at an auction of 30yr debt.
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Sentiment is mixed this morning with U.S. equity futures up slightly, European stocks mixed, and sovereign yields mixed, with the U.S. 10yr up +1bps to 1.944% and holding near the lowest levels since Feb. after European stocks slid -2.3% yesterday. Fed officials meeting today and tomorrow and will debate whether or not to keep monetary policy on hold, as Operation Twist ends in June and amid improving U.S. economic indicators. Policy makers are likely only to repeat their plan to keep the benchmark interest rate lower through late 2014 amid signs of improvement in the domestic economy. This morning energy, copper, and aluminum are all trading higher.
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Sentiment is taking a beating this morning after reports were released indicating a shrink in manufacturing within Europe and China, the Dutch government split over austerity measures, and French President Sarkozy became the first incumbent since 1958 not to win the first round of the nation’s election. Overnight currencies had a risk-off, session with the dollar and yen outperforming and the Australian dollar along with the New Zealand dollar both underperforming. The euro is weakening, down -0.6% versus the dollar, the yen is rising against all 16 of its peers, and yields on sovereign debt rose as the Dutch government split and French President Nicolas Sarkozy lost ground in elections. The premium investors demand to hold Dutch 10yr debt over German Bunds rose to a three-month high. Globally, stock markets are taking a big hit with S&P 500 futures down -0.973%, the Euro Stoxx 50 lower by -2.27%, and Asian markets closed lower as well. Treasuries are gaining, with yields tumbling to the lowest since February; the U.S. 10yr is down -4.2bps on the day to 1.921%. Copper, zinc, and lead all declined at least -1.4%.
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