Monthly Archives: October 2012

The MorningSnapshot 10/31

Sentiment is mixed this morning as investors have a chance to react after the U.S. equity and bond markets remained closed yesterday; this marked the first time since 1888 that weather interrupted U.S. equity trading for two consecutive days. European shares extended this week’s advance, gaining an initial lift from better than anticipated earnings from Lufthansa and Air France-KLM as well as German Retail Sales data that came in ahead of expectations. Since those reports, EU bourses have come down and are now trading nearly even on the day.

Treasuries declined in overnight trading, led down by the belly of the curve (5s and 7s), after trading resumed for the first time since Monday’s half-day session. On daily charts, 2s and 5s are consolidating near mid-Oct. lows, while the rest of the curve rebounding from Monday is breaking lower. The 10yr is still testing slightly below its 50-DMA at 1.71%; support rests at the Oct. 29 low of 1.7%. Sovereign spreads to German bunds in Europe are mostly slightly higher, while the 10yr bund itself has traded down -1.5bps to a YTM of 1.46%

The MorningSnapshot- 10/04

Sentiment is higher this morning, with the S&P 500 rising for a fourth day after jobless claims increased less than forecast by economists and policy makers in Europe continued to hold borrowing costs at record lows. “The jobless claims report was okay and Draghi is signaling he will do whatever it takes, so I’m not expecting him to take his foot off the accelerator,” Philip Orlando, the New York- based chief equity strategist at Federated Investors Inc. which oversees about $370 billion, said in a phone interview. “Every data point in the U.S. will be viewed through a market prism and a political prism now.”

The MorningSnapshot- 10/01

S&P 500 futures are rising on the morning, indicating the equity markets should rally following its biggest weekly slump since June, and as investors await a report that is expected to show manufacturing contracted at a slower pace in September. Despite Euro area unemployment reaching a record high, the Euro Stoxx 50 advanced more than 1% on the day, led higher by Italy’s FTSE MIB and France’s CAC 40 up +1.59% and +1.35% respectively. Spanish and Italian yields declined, while German bunds are little changed. U.S. Treasuries are steady, with the front end of the curve continuing to test lower while the long end consolidates; the 10yr is consolidating around the converged support of the 50 day MA 1.65%, the 100 day MA 1.63%, and the 76.4% Fibonacci retracement of the early September rise at 1.62%. The EUR/USD is consolidating above its 200 day MA of $1.2824 despite investors’ concerns regarding Spain and economic growth in the region.