World markets fell in over night trade as the Euro fell below 1.22. Growth concerns remain for the global economy and the world is not so sure about the recent decisions made to bail out Spain.
In addition to many concerns the Fed released its minutes yesterday without any hints of QE or stimulus.
Comments »Circle jerk action thus far, but the swings are minor. So get a samich and enjoy the great outdoors.
“The start of the earnings season in the US provides an opportunity to review the currency correlations with the S&P 500. We conduct our analysis on the percentage change of the currencies and percentage change in the S&P 500. What we find then is the correlation of the returns, which is more important to investors then if the levels are correlated.
We look at a 30-day correlation to see the near-term trend and we look at the 60-day correlation to the slightly longer term. The general take away is that despite a number of other drivers and influences, the correlation between most of the currencies we looked at and the S&P 500 has increased in the recent period.”
Comments »“Emerging-market stocks fell for a sixth day, dragging a benchmark index (HSCEI) to a two-week low, on concern a deepening global economic slowdown will weigh on earnings.
The MSCI Emerging Markets Index lost 0.2 percent to 932.73 as of 10:43 a.m. in London, poised for the longest losing streak since May 18. Tamweel PJSC (TAMWEEL) slid 3.9 percent, the most in more than a month, after the Dubai-based mortgage lender reported a 33 percent drop in second-quarter profit. Russia’s Micex Index (INDEXCF) retreated 1 percent, while Poland’sWIG20 Index (WIG20) slipped to the lowest in more than two weeks. China Southern Airlines Co., the nation’s biggest carrier by passengers, dropped 2.2 percent in Shanghai trading after saying first-half profit may fall more than 50 percent.”
Comments »Via Bloomberg:
U.S. stocks declined for a fourth day, giving the Standard & Poor’s 500 Index its longest losing streak since May, amid concern about corporate profits….The S&P 500 decreased 0.8 percent to 1,341.47 at 4 p.m. New York time, dropping 2.4 percent in four days.
Read the article here.
Comments »U.S. equities have decidedly turned negative into afternoon trade. Several downgrades and earnings warnings added to a nervous market looking for Europe’s woes to just go away. Despite news that Spain’s banks will get 130 billion Euros shortly, the markets decided that that may not be enough.
The S&P is trying to hold 1340 which is seemingly a crucial support level as of late.
[youtube://http://www.youtube.com/watch?v=EisXJSsULGM 450 300] Comments »“Two years after eclipsing Japan as the world’s second-largest economy, China stole the number-two spot on the Fortune 500 list of the biggest global companies from its Asian rival.
In its annual revenue rankings, Fortune magazine said that China overtook Japan for the first time, landing 73 companies on the list compared with Japan’s 68 companies.
Anglo-Dutch energy giant Royal Dutch Shell retook the top spot, knocking off US retail titan Wal-Mart from a two-year reign with 2011 revenues of $484.5 billion, up 28.1 percent from 2010.
The remaining members of the top 10 are, in descending order: ExxonMobil (US); Wal-Mart Stores (US); Britain’s BP; Chinese companies Sinopec Group, China National Petroleum and State Grid; Chevron (US); ConocoPhillips (US) and Japan’s Toyota Motor.
“Although the US still hosts the lion’s share of Global 500 corporations, no country has lost more companies during the last decade. There are 132 US-headquartered businesses on this year’s list, down from 197 a decade ago,” the US business magazine said.”
Comments »“A couple of trends have been developing in the hedge fund space that are worth noting. It seems that institutional investors (and fund of funds managers) continue to support the so-called “market neutral” strategies. Typically these funds will run a leveraged portfolio on a gross basis but try to neutralize it via long/short stocks or stock indices. They tend to use various beta weighted measurements to determine how stocks will respond to market movements in order to construct what they view as a “neutral” book.”
Comments »“Japan’s current-account surplus was the smallest for the month of May since at least 1985 and machinery orders fell the most in more than a decade.
The excess in the widest measure of trade shrank 63 percent from a year earlier to 215.1 billion yen ($2.7 billion), the Ministry of Finance said in Tokyo today. The median estimate of 24 economists surveyed by Bloomberg News was for a surplus of 493.1 billion yen. Machinery orders, an indicator of capital spending, fell 14.8 percent in May from the previous month, the Cabinet Office said, the biggest drop since 2001.”
Comments »Markets are off considerably on week non farm payrolls. Paty close attention to the close today to see if we get a snap back rally….otherwise we could be in for much more downside action.
I’m off to make a fool of myself on the golf course again.
[youtube://http://www.youtube.com/watch?v=JMkFjYRWM4M 450 300] Comments »“No big changes in rail traffic this week. Carloads continue to post small declines and intermodal continues to post improvements. Intermodal is up to 7% on a year over year basis with the 10 week moving average coming out to 4.5% this week. That’s up marginally from 4.2% last week. The AAR has details on this week’s data:”
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