Global Market Commentary, Analysis and Investments
Today, traders are celebrating that the U.S. economy added the most jobs in nearly a year. Or so they’re led to believe. Let’s examine the payroll data first:
The dollar was still stuck in a rut through most of yesterday's trading, in spite of a weekly jobs report that showed jobless claims climbed to 500,000. But Bundesbank head Alex Weber dropped a bomb on the markets late yesterday and sent the euro (EUR) running for cover. The euro has fallen over one cent in early trading and is in danger of losing the $1.27 handle for the first time in a month. More on the euro in a sec, but first let's review the jobs data, which dominated the news yesterday.
[Read more...]Well… On Friday, when I was signing off, I said that suddenly the currencies were getting sold… At that time, it looked as if it might be short-lived… But NOOOOOOOOOOOOOO! This was an all-out assault on risk, folks… At when the dust settled in the early afternoon, the euro (EUR) had fallen below 1.20, for the first time since 2005, and every other currency was getting whacked, too. For the first time all week, though, gold rallied…
[Read more...]Wow… You’d think the spinmeisters at the Bureau of (much be)Labor(ed) Statistics (BLS) could do a better job of putting lipstick on a pig than this.
At first glance, she looks well coifed and attractive. But when you lift the blouse a bit, there’s only one word that comes to mind – ugly. Miss Piggy ugly. Let’s examine the rolls on her belly…
[Read more...]All the euphoria about the end of the euro (EUR) selling got deep-sixed yesterday on two counts… 1. The European Central Bank (ECB) decided to extend stimulus measures, which led the markets to believe that the ECB would remain on hold with their interest rates, and once again, the markets believed that the US would begin to raise rates before the ECB… 2. Moody’s downgraded Deutsche Bank (Germany’s largest bank).
[Read more...]Copyright © 2012 · Church Theme on Genesis Framework · WordPress · Log in
No Return on Government Investments
The news was good yesterday. Investors heard that Europe had its problems under control. Then, Obama told them that he was going to give the economy a jolt.
Investors breathed a little easier. The feds were on the case.
The Dow rose 183 points. Meanwhile, bonds went down, with the yield on the 10-year note rising to almost 2%. Oil rose too, and ended the day trading over $80. Even gold went up — $11.
[Read more...]