There’s a lot to get to this morning… but front and center is the Jobs Jamboree Friday… The first one of 2012, although it is December’s job creation report. The ADP jobs report yesterday, which was supposed to be the “indicator” for the Jobs Jamboree, but never really materialized as such, reported that 325,000 jobs were created in December… Now, that would be something to crow about… It will be interesting to see what the Bureau of Labor Statistics (BLS) comes up with… As I told you earlier this week, this is also the month were the “adjustments” to previous BLS reports are made… However, those won’t get a spotlight, and mass media coverage… They are done under the dark of night, sort of like the bill that was signed on New Year’s Eve by the President… If you’re not aware of that one, you should be… Your personal freedoms could very well hang in the balance…
[Read more...]Euro Rallies on Positive IFO Index and a Successful Spanish Debt Auction
The euro (EUR) sure enjoyed a better night rebounding from close to its annual low versus the US dollar. A surprisingly upbeat IFO business climate index combined with a pledge of more funds for the bailout and a positive Spanish auction to send the common currency higher. The IFO Institute’s index, based on a survey of 7,000 German business executives, rose to a three-month high of 107.2 from 106.6 in November. Economists had expected the index to drop to 106. November’s number had surprised on the upside also, so this month’s value certainly seems to confirm a trend that indicates Germany’s economy may be able to push through the credit crisis to remain on a solid growth path.
[Read more...]US Retail Sales Disappoint
It’s all about the dollar, right now… And of course, in September I told you that the perfect storm was building for dollar strength, so this comes as no surprise… What does surprise me, though, is the myopic view of debt that the markets’ participants have taken… It’s as if all the debt in the world belongs to the Eurozone, and the US has a picture-perfect balance sheet…
[Read more...]The Risk-On Rally Continues
Front and center this morning, Chris told you all about the new lines and lower borrowing rates that six central banks from around the world, have coordinated. And he told you that the markets liked the move… And the markets continued to like the move all day yesterday, overnight and this morning… But, does this sound like something that can outweigh the debt problems of the Eurozone? To me… The simple answer is no… The longer version of the answer is…
[Read more...]Greek and Italian Turmoil Negatively Affect the Euro
Right off the bat, this is going to be super short and sweet this morning as Chuck was feeling under the weather last night and asked me to step in with some of the market headlines from this morning and last night. The market moving headlines yesterday and through today so far have been primarily European in nature, as Italy is beginning to steal the spotlight away from Greece in the debt crisis du jour. Since Italy is a bigger fish in the Eurozone than Greece, the levels of concern have been on the rise.
[Read more...]France and Germany Agree to Increase in EFSF
Front and center this morning… Spain may have seen a 2-notch credit rating drop yesterday, but it didn’t matter, as it was announced that France and Germany were ready to agree to a 2 trillion euro rescue fund… Now they’re talking about a rescue fund, and not just the 500 billion euros they had previously agreed to. And the markets went hog-wild over this announcement. The dollar rally was quickly reversed and the euro (EUR) was on its way to 1.39, where it sat this morning until a few minutes ago… The Eurozone leaders, thus raised the ante… Who’s going to call?
[Read more...]Chinese Exports Slow Down
Well… Those lofty figures from yesterday for the currencies and metals held for most of the day and night, until… China printed their latest export report, which showed exports slowing… Exports rose the least in seven months… Now… Seven months ago, 14 months ago, and so on, economists and analysts have forecast a collapse of the Chinese economy and they have been wrong… I’m sure we’ll hear more from the Chicken Littles on this… I’ll tell you one thing that’s sure to happen… (That is, I’m pretty sure, but there’s no guarantee!) If exports continue to slow, the Chinese government won’t be so quick to allow a faster appreciation of the renminbi (CNY)… They’ll have no incentive to do so!
[Read more...]Bernanke Says US Economy is “Close to Faltering”
Yesterday Big Ben Bernanke took the stand to talk about the economy… I sat here in amazement with his disconnection to the goings-on in the economy… He still believes the economy will be stronger in the second half of the year… Of course, one only has to question that if he really believes that, then why did the Fed Heads implement Twist & Shout? If the economy is on the verge of taking off to the moon, why did he need to cut interest rates 0.5%, which is what, in his own words, Twist & Shout is worth… 0.5% rate cut…
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Currency Rally Fades in Overnight Trading
The currency/risk on rally was quite strong yesterday, all day long! However, in the overnight markets, we’ve seen some profit taking, and reassessing of what they were doing, like pushing the euro to above 1.30. I say that because there’s still no agreement with Greece and the private creditors… I keep hearing and reading analysts, talking about how the Greece problem is unsolvable… OK… maybe it is… but if that’s true, then what about Illinois? Or California?
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