DOW up 111
S&P up 12
NASDAQ up 23
Comments »Aisia Trades Mixed at Best, Europe is Flat Like a Pancake, and U.S. Future Wait on Non Farm Payrolls
Yields for Italy, Spain, France, and Germany …
Comments »Global Markets Trade Lower, U.S. Futures Look for a Bounce
Yields for Italy, Spain, France, and Germany …
Comments »Another Chart Indicating Equities are Rigged by the Fed
“The Citigroup Economic Surprise Index, which tracks how various economic data releases come in relative to expectations, is now below zero.
That means recent economic data releases have been disappointing relative to the market consensus.
Just in the past week, we’ve seen some nasty surprises – flash PMI, durable goods orders, GDP, and Chicago PMI have all come in below consensus.
Yet stocks keep moving higher, and it seems like lately “good news is bad news” (in that if the economy doesn’t strengthen, continued monetary easing from the Federal Reserve should keep markets afloat).
In a note out last night, Mike O’Rourke of Jones Trading wrote:
The US equity market has given up even the appearance of caring about economic data. Throughout Q1, as the S&P 500 garnered an impressive 10% return, high hopes were pinned on a 3.5% GDP print, then expectations retrenched to 3% before the actual print of 2.5% emerged. The chart below illustrates that the economy continues to trudge along at a 2% year over year GDP growth rate.
Not to say that a single data point like the Dallas Fed Manufacturing index merits a market move, but it is surprising when the 3rd worst print since the recession is met by another push higher in Equities. Few would describe earnings season as anything but a disappointment. Obviously, the Central Bank Benevolence trade continues to dominate the tape.
The chart below shows the Citigroup Economic Surprise Index and the S&P 500….”
Comments »What Trades in Asia Falls, Europe is Mixed, and U.S. Future Play Wait and See
Yields for Italy, Spain, France, and Germany …
Comments »The Nikkei Manages to Pare Losses
“Asian stocks declined from the highest level since June 2008, led lower by Japanese shares as the yen strengthened and data signaled a slowdown in global business activity. Oil and copper dropped.
The MSCI Asia Pacific Index dipped 0.3 percent as of 11:37 a.m. in Tokyo as Japan’s Topix Index slid 0.5 percent after posting its best month since 1999. Standard & Poor’s 500 Index futures were little changed. The yen climbed 0.1 percent to 97.36 per dollar. Crude oil declined 0.4 percent, and copper lost 0.4 percent after the biggest monthly loss since May.
An Australian manufacturing gauge slumped to a four-year low as currency strength weighed on exporters, while China’sPurchasing Managers’ Index expanded at a slower pace, according to reports today. U.S. private employers added the fewest jobs in six months, economists forecast, after business activity unexpectedly shrank in April for the first time in more than three years.
“There is little doubt that risks to global economic growth for 2013 are tilted to the downside,” said Matthew Sherwood, the Sydney-based head of investment market research at Perpetual Ltd., which manages about $25 billion. “Earnings growth after several years of very subdued performance still seems a bit of a stretch.” …”
Comments »The Euro and European Bond yields Fall as Low Inflation Raises Easing Prospects
“European government bonds rose, pushing French yields to a record low, and the euro weakened as slowing inflation boosted the prospect of more central bank stimulus. Futures on the Standard & Poor’s 500 Index (SPX) were little changed after the gauge closed at an all-time high yesterday.
French 10-year bond yields fell as low as 1.70 percent as of 7:25 a.m. New York time, while the euro weakened against all but two of its 16 major peers. The MSCI All-Country World Index of shares added 0.2 percent, extending the highest level since June 2008. European stocksheaded for an 11th month of gains, and corn for July delivery advanced 0.8 percent to $6.65 a bushel in Chicago. Treasuries rose…”
Comments »Asia Has a Small Bounce, Europe is Mixed, and U.S. Futures Digest
Yields for Italy, Spain, France, and Germany …
Comments »Italy Celebrates a New Government With a Rally and Successful Bond Auctions
“LONDON (AP) — Italy’s stock market was the big gainer Monday at the start of an action-packed week in financial markets, as investors cheered the news that a new government was ready to take the helm after two months of political deadlock.
Italy’s new coalition government led by Premier Enrico Letta brings together forces from both the left and the right and will begin its work after a confidence vote later Monday in Parliament.
As the third-biggest economy among the 17 European Union countries that use the euro, Italy is hugely important to the future of the single currency. It has the second-highest debt burden in the eurozone after Greece so remains under market pressure to keep a lid on its borrowings. Over the past couple of years, Italy has done a lot to bring its debt down but at a high cost, with the economy back in recession and unemployment on the rise.
“Given the fractious nature of Italian politics, the new government headed by Enrico Letta is indeed progress,” said Michael Hewson, senior markets analyst at CMC Markets.
“However it was done without any of the protagonists who had led Italy’s main political parties in the original election campaign, which could bring into question the democratic legitimacy of the entire process with technocrats in a number of key positions,” he added.
Despite those worries, Italy’s FTSE MIB index was outperforming all its peers, and some. It was trading 1.7 percent higher at 16,839. And in another sign of optimism, the yield on the country’s benchmark 10-year bond dropped around 0.10 percentage point to 3.93 percent. That’s the first time it has dropped below 4 percent since November, 2010.
The euro was also solid, trading 0.4 percent higher at $1.3078….”
Comments »Asia Trades Mixed, Europe is Up Slightly, and U.S. Futures are Reaching for New Highs
Yields for Italy, Spain, France, and Germany …
Comments »Cool Chart Showing a Wide Range of Overbot and Oversold Markets
Asia Opens Mixed
The Nikkei Gaps Up Lifting Other Asian Markets
“Asian stocks rose as Japanese exporters advanced after the yen weakened and increased sales of new homes in the U.S. added to signs the world’s biggest economy is recovering.
Nissan Motor Co. (7201), a Japanese carmaker that gets 79 percent of sales overseas, climbed 1.9 percent. SK Hynix Inc., the world’s second-largest maker of computer memory chips, rose 1.2 percent in Seoul after posting profit that beat analyst estimates. Pharmaxis Ltd. plunged 43 percent to a record low after the Australian pharmaceutical company said it won’t proceed with a regulatory submission for a new drug after clinical trials were unsuccessful.
The MSCI Asia Pacific Index (MXAP) gained 0.5 percent 137.62 as of 10:08 a.m. in Tokyo, heading for its highest close since April 12. More than three shares rose for each that fell on the gauge. The measure climbed 5.8 percent this year through yesterday amid signs the U.S. economy is recovery as Japanese equities rallied on speculation the Bank of Japan will step up efforts to end deflation.
“The economy in the U.S. is hitting that sweet spot where it’s not bad enough to worry investors but not strong enough for theFederal Reserve to start withdrawing stimulus,” said Stan Shamu, a markets strategist at IG Markets Ltd. in Melbourne, a provider of trading services in currencies and equities. “It’s positive for the global economy. There are still heightened expectations of central-bank action.”
Weaker Yen
The Nikkei 225 Stock Average increased 1.3 percent, heading for its highest close since June 2008, as the yen dropped for a second day against the dollar. A weaker yen boosts the value of overseas income at Japanese exporters when repatriated….”
Comments »Market Melt Up Update
U.S. equities took their cue from Europe and ignored bad global economic data. Flash PMIs for China and the U.S. were below expectations while Europe continues to climb deeper into a pitfall of recession.
Companies around the globe reported good earnings which seem to help equities rally.
Oil has pared half or more of its morning losses while gold and silver have pared gains to find red ink.
The markets have overlooked last weeks drudging and have found a suit of Teflon to replace last week’s burlap.
Given yesterday’s and today’s trading action the bulls are claiming that the bull leg is still intact and that new highs will be had soon.
[youtube://http://www.youtube.com/watch?v=W4VpE-0zitU 450 300] Comments »
The Nikkei Falls as the Yen’s Move Slows and the BOJ Finds No More Ability to Ease
“Japanese shares dropped, with the Nikkei 225 (NKY) Stock Average falling from its highest since July 2008, as the yen gained against the dollar and investors await major earnings reports this week.
Sony Corp. (6758), which gets nearly 20 percent of its sales from the U.S., fell 0.6 percent. Yamada Denki Co. dropped 4.8 percent after the electronics retailer missed its profit forecast by 35 percent. Oki Electric Industry Co. surged 21 percent after the Nikkei newspaper said operating profit doubled at the maker of ATMs. Komatsu Ltd., a machinery maker that gets 17 percent of its sales in China, reversed gains after Chinese manufacturing data fell short of estimates.
The Nikkei 225 lost 0.3 percent to 13,529.65 at the close in Tokyo. The Topix Index lost 0.2 percent to 1,143.78, with about three stocks gaining for every two that fell on the 1,698- member index.
“The yen is weakening at a slower pace, and there’s no catalyst for the Bank of Japan to ease further, which is what it would take to send the yen down,” said Ayako Sera, a market strategist in Tokyo at Sumitomo Mitsui Trust Bank Ltd., which manages about $163 billion. “Investors now need to see how the yen’s slide impacts earnings.”
The Topix has climbed 58 percent since mid-November through as Prime Minister Shinzo Abe and central bank Governor Haruhiko Kuroda pledged to defeat 15 years of deflation. The gauge trades at 1.3 times book value compared with 2.3 for the Standard & Poor’s 500 Index and 1.6 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
China Manufacturing…”
Comments »Most of Asia Trades Lower, Europe’s Relief Rally Continues, and U.S. Futures Look for Higher Ground
Yields for Italy, Spain, France, and Germany …
Comments »U.S. Futures Rise as G-20 Celebrates Japanese Stimulus
“U.S. stock futures rose, signaling the Standard & Poor’s 500 Index will rebound from its biggest weekly drop in five months, as the Group of 20 finance ministers failed to oppose Japan’s monetary policies at a meeting.
Power-One Inc. soared 56 percent in early New York trading after ABB Ltd. agreed to buy the maker of solar-power inverters for about $1 billion. Eldorado Gold Corp. and Barrick Gold Corp. each gained more than 3 percent as the price of the precious metal rose. Caterpillar Inc. (CAT)fell 0.9 percent after cutting its revenue forecast for the year.
S&P 500 (SPX) futures expiring in June advanced 0.4 percent to 1,554 at 7:39 a.m. in New York. The equity gauge fell 2.1 percent last week, its biggest drop since November, as earnings from Bank of America Corp. and International Business Machines Corp. missed estimates and asChina’s economy unexpectedly slowed. Contracts on the Dow Jones Industrial Average climbed 50 points, or 0.4 percent, to 14,520 today.
“It’s encouraging to see that there’s no resistance from the G-20 leaders to Japan’s monetary policies,” Veronika Pechlaner, who helps manage about $1.5 billion as investment manager atJersey, Channel Islands-based Ashburton Ltd., said by phone. “Markets are taking that as a positive as they expect the trend in quantitative easing and yen weakness to continue.”
Japan’s Stimulus…”
Comments »European Markets Continue to Bounce on Stronger Oil, Gold, and Italian Bonds
“European stocks rebounded from the biggest weekly drop in five months and Italian note yields slipped to a record as the country elected a president and the Group of 20 nations offered no opposition to Japan’s stimulus policies. The yen weakened while gold rose for a fifth day.
The Stoxx Europe 600 Index (SXXP) increased 0.8 percent at 7:25 a.m. in New York as UniCredit SpA, Italy’s biggest bank, advanced 4.5 percent. Standard & Poor’s 500 Index futures added 0.5 percent. Italy’s two-year note yield fell as much as 13 basis points to 1.208 percent. Japan’s currency depreciated for a fifth straight day, slipping 0.2 percent to 99.72 per dollar. Gold jumped 2.2 percent.
President Giorgio Napolitano will be sworn in for a second seven-year term today and could begin consultations on a new government as soon as tomorrow. Bank of Japan Governor Haruhiko Kuroda said he was emboldened to press ahead with policy that includes buying 7 trillion yen ($70.1 billion) of bonds a month after the G-20 backed stimulus efforts. European Central Bank Governing Council member Klaas Knot said yesterday data for the 17-nation currency bloc show that economic risks persist.
“This morning we have a little bit of relief from the Italian situation,” said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen. “Maybe the Napolitano re- election is what it will take to get a more stable political situation. We’ve seen a little bit softer U.S. housing data recently but overall the trend is for structural improvement.”
Italy Banks
Four shares gained for every one that declined as the Stoxx 600 rebounded from last week’s 2.5 percent slide. UniCredit and Banco Popolare SC led a rally in Italian banks, advancing more than 4 percent. Delhaize Group SA (DELB) climbed 12 percent to the highest level since November 2011 after the Brussels-based retailer reported earnings that beat analyst estimates….”
Comments »The Yen Edges Closer to 100 to the Greenback
“The yen weakened, falling toward 100 per dollar for the first time since April 2009, after Bank of Japan (8301) Governor Haruhiko Kuroda said he was emboldened to press ahead with a campaign to defeat deflation.
Japan’s currency dropped against 15 of its 16 major counterparts after the Group of 20 offered no opposition to the central bank’s monetary stimulus policies at a meeting last week inWashington. Sweden’s krona strengthened after Riksbank Deputy Governor Lars E.O. Svensson said he will leave the central bank after failing to get support for deeper interest-rate cuts. The euro rose for a third day versus the yen after Giorgio Napolitano was re-elected to a second term as Italian president.
“The BOJ has definitely altered the psychology of the market” toward the yen, said Stephen Gallo, European head of currency strategy at Bank of Montreal in London. “The safe- haven attributes of the yen have been fundamentally and drastically altered for the foreseeable future.”
The yen fell 0.2 percent to 99.74 per dollar at 6:54 a.m. in New York after depreciating to 99.90, the weakest since it declined to a four-year low of 99.95 on April 11. Japan’s currency dropped 0.2 percent to 130.09 per euro. The euro was little changed at $1.3044.
G-20 finance chiefs and central bankers meeting on April 19 praised the measures taken by the BOJ this month aimed at increasing inflation to 2 percent within two years. They signaled Japan’s focus on supporting domestic demand was strong enough to allow them to ignore the side-effects on their own economies of a sliding yen.
‘More Confidence’…”
Comments »Global Markets Rally, U.S. Futures Reach for Higher Ground
Yields for Italy, Spain, France, and Germany …
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