Monthly Archives: May 2013

Stocks Fall on Stimulus Addiction

Stocks in the U.S. and Europe fell amid concern that the Fed may begin tapering current stimulus measures as the domestic economy picks up,  with the S&P 500 and Euro Stoxx 50 down -0.7% and -1.74% respectively. All of the…

Sentiment Waning

Sentiment is fairly negative this morning as investors speculate an improvement in U.S. economic data will push the Fed to begin tapering its current bond-purchase program. In Europe stocks are moderately lower, with the Euro Stoxx 50 down -1.14% as the euro climbs +0.7% versus the greenback. Equities in Asia were mixed, with the Nikkei 225 closing slightly higher +0.1% as the yen strengthened against most of its peers. S&P 500 front-month futures were down -0.63% as of 8:04am EST, while Treasury yields are near their highest levels since April 2012. Overnight tens moved +1bp higher to 2.17% ahead of today’s $35B auction of five-year notes. Crude oil and copper are both trading lower by nearly -1%, while gold is higher by +0.86%.

Futures Higher Before Home Prices and Consumer Confidence

Futures are higher domestically after the S&P 500 posted its first weekly loss in over a month before reports likely to show U.S. consumer confidence improved and home values increased by the most in seven years. Euro-area stocks are mostly higher today before the European Commission decides tomorrow whether to grant Spain until 2016 to bring its deficit back within the EU limit of 3% of GDP; other important releases in Europe include mortgage lending, GDP, and consumer and producer prices. The Euro Stoxx 50 is up +1.41%, while in Asia stocks pared early losses on a weaker yen to close higher, with Japan’s Nikkei 225 up +1.2%. Commodities are climbing higher, with copper and crude oil trading +0.5% and +1% higher respectively; gold is down -0.6% to $1,378.4. Treasuries fell overnight, led by the long end of the curve, with tens rising +3bps to 2.04% before supply after moving higher by +5.7bps last week on speculation the Fed will begin to taper its bond purchases soon.