Monthly Archives: May 2013

Risk-Off Trades Dominate Early Trading

Treasuries are gaining as the euro slides after euro-area unemployment rose to a record 12.2% in April and German retail sales missed estimates. The Euro Stoxx 50 is down -0.64% while most sovereign debt yields are trading down moderately and the euro is lower by -0.3% versus the greenback. Domestically, Treasury yields are lower, with tens down -4bps to 2.07%, while S&P 500 futures are trading down -0.5%. Copper is down -0.9%, gold is -0.4% lower, and crude oil is off by -0.7% after OPEC left its production cap at 30M barrels per day.

Risk Assets Keep Moving Higher

U.S. stocks advanced on the expectation that the Fed will maintain its current bond-purchase program longer than some had speculated over the previous week. The S&P 500 advanced +0.37, fading into the close, with financials and healthcare leading the way…

Stock Futures Higher Before GDP & Pending Home Sales

U.S. futures are rebounding this morning, signaling stocks may rally after yesterday’s biggest drop in four weeks ahead of reports on home sales and economic growth. Sovereign yields are lower across the board, led by German and U.S. debt, while in Asia Japan’s Nikkei 225 tumbled -5.2%, extending its loss from last week’s high to 13%. U.S. Treasury yields reversed lower amid weakness in euro-area equities and most commodities, with fives and tens higher by +3bps and +2bps to 1.04% and 2.14% respectively. Crude oil is down by -0.6% and copper is nearly unchanged, while gold is up +0.5% and nearing resistance at $1,400. Front-month S&P 500 futures are higher by +0.3%, while in Europe the Euro Stoxx 50 has pared earlier losses to rise +0.8%. The dollar index is slightly in the green after declining overnight and the euro is slightly higher as well, while the yen continues weakening.

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%.