Monthly Archives: July 2012

The MorningSnapshot- 07/27

Sentiment soared higher yesterday and continues to climb this morning on expectations the ECB may begin a new round of bond purchases to ease pressure on Italian and Spanish borrowing costs. This morning the U.S. 10yr benchmark rate climbed +4.5bps to 1.483% not even 10bps above the historic low of 1.387% reached earlier this week. European sovereign debt spreads to bunds have tightened significantly overnight; Spanish and Italian 10yrs are trading at 6.61% and 5.88% respectively. Equity markets around the world are in the green, with the S&P 500 up +0.36% and the Euro Stoxx 50 up +1.46% as of 9:45 EST; Asian stocks closed strongly higher.

The MorningSnapshot- 07/26

Sentiment turned around this morning and U.S. equity futures reversed earlier losses after ECB President Mario Draghi said policy makers will do everything in their power to ensure the survival of the euro. Globally equity indices are trading higher, with S&P 500 futures up +1.38%, the Euro Stoxx 50 up 3.03%, and Asian markets also showed strength. The dollar is taking a beating versus the majority of its major peers. In Europe, sovereign debt spreads to German Bunds have tightened significantly, and the Spanish 10yr is back below 7% (see chart on attachment) and its spread to bunds is back under 600bps. Commodities are mostly higher, with energy leading the way; Brent Crude is up +1.4%.

The MorningSnapshot- 07/25

Sentiment is positive this morning as the Spanish 10yr retreats from record highs after the ECB’s Nowotny said there are strong arguments for giving the ESM a banking license. The U.S. 10yr Treasury yield has rebounded from historic lows and is up +4.2bps to 1.43%. In Europe, sovereign debt yields are mostly lower, and spreads to German Bunds are significantly tighter. Futures on the S&P 500 are trading +0.427% higher, European stocks are all in the green with the Euro Stoxx 50 up +1.28%, and Asian equity indices closed slightly to modestly lower. Commodities are mostly modestly higher, with Brent Crude up +0.33% on the day.

The MorningSnapshot- 07/24

European markets plunged into fresh turmoil yesterday after the first call for bailout aid by a Spanish region sent borrowing costs soaring, while Italy and Spain reinstated a ban on short selling. Sovereign bond yields of the U.S., Germany, and the U.K. hit new lows in response, while the euro traded below its lifetime average against the dollar.

Sentiment this morning is mixed between rising PMI figures in China versus disappointing European manufacturing PMIs and after Moody’s put Germany’s Aaa rating on outlook negative. S&P 500 futures are down -0.233%, the Euro Stoxx 50 is down -0.61%, and Asian equity indices closed lower on the day. U.S. Treasury yields are up +3bps to 1.455% after yesterday reaching an all-time low of 1.4%. Most yields are higher in Europe, and spreads to Bunds are all higher except for Sweden, the U.K., and Switzerland. Spanish 10yrs are trading at new all time highs of 7.4714%. Commodities are slumping, with Wheat and Corn down -2.9% and -1.72% respectively. The euro is down -0.116% to $1.2103 this morning, and most risky FX pairs have declined while the Yen and USD advance.

The MorningSnapshot- 07/23

Sentiment is sharply negative this morning after Spanish regulators banned short selling, Chinese policymakers warned of a slowdown in growth, and as speculation over Greece leaving the 17-nation euro-zone increases to a high. The U.S. 10yr Treasury is hovering near 1.41% after hitting an all-time low of 1.40% in overnight trading. Two-year German yields fell to as low as minus -0.08%, while Italian and Spanish yields jumped; sovereign debt-spreads to German Bunds all widened on the day. S&P 500 futures are down -1.396%, the Euro Stoxx 50 is down -2.84%, and Asian equity indices all closed sharply lower on the day. Greece retakes center-stage this week as its international creditors, including the European Commission, the ECB, and the IMF, arrive in Athens today to assess how far off course the country is from its bailout targets, again increasing murmurs of a return to the drachma. Commodities are strongly lower on the day, led down by Brent Crude down -3.9%.