Monthly Archives: July 2013

Domestic Stock Futures Higher on Bernanke’s Comments

Sentiment is higher this morning after Bernanke’s speech yesterday that came after market close in which he called for maintaining accommodation, with S&P 500 futures higher by +1%. The dollar is lower versus 21 of 23 major peers, weighed by market participants scaling back extreme long positions after the FOMC minutes were released yesterday; the dollar index is trading down by -1.2% . Most commodities, save crude oil and natural gas, are catching a bid on the day. Treasuries are gaining as are most sovereign bonds globally, with tens falling -4bps to 2.59%.

Sentiment Higher After Alcoa Earnings Beat Estimates

Sentiment is higher across most global asset classes after Alcoa’s earnings report sparked a wave of risk asset purchases with most emerging market currencies outperforming, while the dollar, franc, and yen are selling. The euro is underperforming most of its peers despite Greece winning the release of €3B in aid on continued stringent terms. Equities are higher while most sovereign yields are falling and relative the German Bund most yield spreads are tightening. Chinese consumer and producer prices are weighing on aluminum and copper, while crude oil continues a second day of declines. U.S. treasuries resumed declines that pushed yields to the highest levels since Aug. 2010.

Overall, Sentiment is Higher on The Day

Treasury yields remain near the highest levels since 2011 after last Friday’s jobs report came in better than expected, bolstering expectations that the Fed will begin tapering its asset purchase program sooner rather than later. Overall, sentiment is positive with the dollar losing ground versus its major peers, sovereign yields falling, and stocks rising. S&P 500 futures are higher by +0.4%, while across the pond the Euro Stoxx 50 is higher by +2.4%. Crude is trading down -0.6%, while gold and copper are trading +1.5% and +0.3% higher respectively.