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Thursday, 9 February 2012 | U.S. Equities Up Slightly while Dollar and Bonds Remained Flat.
U.S. stocks finished slightly higher as investors continue to await an agreement among Greek politicians on reforms ahead of the country's second international bailout. In Athens, government officials and opposition parties continue to work to bridge differences on the economic and budgetary reforms being demanded by international lenders.
On the currency front, the euro was little changed Wednesday, as markets awaited news on Greece's efforts to forge political consensus on a debt and bailout agreement needed to avert default.
US Treasuries ended flat, as investors stayed on the sidelines due to the ongoing concerns about Greece's debt discussions.
Sources: DJ Asian Newswires, Bloomberg & others. |
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Wednesday, 8 February 2012 | U.S. Equities Rose while Dollar and Bonds Came Off.
U.S. stocks rose overnight, with blue chips reaching a fresh multiyear closing high, as investors were encouraged by progress in Greece over austerity measures to address its debt crisis. The Dow finished at its highest close since May 2008.
Talks between Greece and its creditors on a loan deal appeared to be nearing a conclusion Tuesday, though political leaders postponed a meeting later in the day to discuss the plans further.
The euro surged to another high against the dollar Tuesday on fresh hopes that Greece's debt restructuring would be completed soon. Investors immediately seized on headlines that indicated Greece was once again pushing toward a resolution to replace outstanding debt.
US Treasuries fell Tuesday, exacerbated by a U.S. three-year note sale that drew only lukewarm interest.
Sources: DJ Asian Newswires, Bloomberg & others. |
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Tuesday, 7 February 2012 | U.S. Equities Fell while Dollar and Bonds Rose.
U.S. stocks drifted lower, putting on hold five weeks of gains for the broader market, as investors shifted their focus to wrangling in Greece over fiscal austerity.
U.S. stock declines tracked European markets as Greece's political leaders tried to agree on fiscal-austerity measures needed to keep Athens from defaulting on its debts next month. Greece agreed to cut 15,000 public-sector workers by the end of this year, while a meeting scheduled for Monday among Greek Prime Minister Lucas Papademos and other political leaders on reforms being demanded by the country's creditors was delayed until Tuesday.
The euro fell slightly as Greek Prime Minister Lucas Papademos struggled to strike a political agreement on new austerity measures needed to secure external financing. However, the currency bounced back from its intraday low after German Chancellor Angela Merkel indicated the European Union wouldn't allow a potentially destabilizing Greek bankruptcy.
Uncertainties over a bond-swap deal to avoid a default by Greece rode to the U.S. Treasury market's rescue.
Sources: DJ Asian Newswires, Bloomberg & others. |
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Monday, 6 February 2012 | U.S. Equities and Dollar Up, while Bonds Under Pressure.
US stocks rose after the U.S. economy added more jobs than expected last month, driving the various equity indices higher. The Dow Jones Industrial Average advanced 1.2% while the Standard & Poor's 500-stock index tacked on 1.5%. The gains followed a strong employment report from the U.S. Labor Department showing nonfarm payrolls grew 243,000 last month, marking the biggest gain since April. The jobless rate fell from 8.5% to 8.3%, the lowest it has been since February 2009.
In a twist from the usual story of risk sentiment, the strong jobs report boosted the dollar Friday, as evidence of a rebounding labor market helped diminish expectations of more expansionary monetary policy by the Federal Reserve.
Uplifting U.S. economic releases on Friday drove investors out of safe-harbor Treasury bonds, fueling the biggest one-day selloff for the benchmark 10-year note since late October.
Sources: DJ Asian Newswires, Bloomberg & others. |
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Friday, 3 February 2012 | U.S. Equities Fell, the Dollar Rose while Bonds were Mixed.
The Dow Jones Industrial Average shed 0.1 per cent to 12705.41 while the Standard & Poor's 500-stock index gained 0.1 per cent to 1325.54. Dow Jones sectors were mixed with financials leading the gainers while technology weighed down on the index.
Claims for U.S. jobless claims fell with productivity slowing in the fourth quarter, signalling hiring may accelerate as companies reach the limits of how much efficiency they can derive from existing workforces.
The Euro gained against the Swiss franc as the Swiss National Bank's Thomas Jordan reiterated the bank's commitment to defend the euro's CHF 1.20 floor. Traders are also on the lookout for intervention from the Bank of Japan to weaken its currency since the dollar is hovering at its lowest level since the last time Japan intervened in late October.
If tonight’s closely watched U.S. non-farm payrolls report shows the economy is progressing toward robust recovery, analysts expect the dollar to weaken as investors interpret it as a positive sign for global growth. By contrast, if the data come in weaker than the 140,000 jobs that are expected to have been created, there could be a rush to buy the greenback.
U.S. Treasury prices were relatively flat as investors await the highly anticipated monthly U.S. non-farm payrolls report. Adding on to the uncertainty surrounding Greece, investors treasuries were left drifting between slim gains and losses for much of the session.
Sources: DJ Asian Newswires, Bloomberg & others |
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Thursday, 2 February 2012 | U.S. Equities Rose while the Dollar Fell and Bonds Ended Mixed.
U.S. stocks snapped a four-day losing streak, pushing higher as investors cheered solid manufacturing reports around the globe.
The gains were driven by signs that U.S. employment gains and global manufacturing are sustaining their recent strength. The U.S. added 170,000 new private-sector jobs in January, in line with economists' expectations, though the previous month's total was revised lower. The reading is seen as a preview to the closely watched government employment report due Friday.
Separately, a reading on U.S. manufacturing came in at 54.1 for January, a touch below expectations but better than December's revised reading of 53.1. Construction spending, however, jumped 1.5% in December, better than expectations for a 0.5% rise.
Positive economic data helped bolster the euro and growth-sensitive currencies against the dollar. The euro briefly jumped back above $1.32 following improving manufacturing data out of Europe and the U.S. Reports also indicated another month of steady growth in U.S. private sector payrolls and a jump in construction spending, adding to the upbeat environment.
The recent bull run in the Treasury bond market hit a wall, stung by a batch of uplifting global manufacturing reports and optimism over the nearness of a bond-swap deal to avoid a default by Greece.
Sources: DJ Asian Newswires, Bloomberg & others. |
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Wednesday, 1 February 2012 | U.S. Equities Fell while Bonds and the Dollar Rose.
The Dow Jones Industrial Average slid 0.2%, to 12632.91 while the Standard & Poor's 500-stock index ended 0.1% marginally lower to 1312.41. Dow Jones sectors were mixed with significant gains from financials while biggest losers came from oil & gas.
U.S. equity markets were pressured lower on an abysmal reading of consumer confidence survey that came in at 61.1, well short of analysts’ expectations of 68.0.
Meanwhile, the Euro remained weak as Greece’s debt negotiations continued dragging on, capping earlier optimism over European leaders striking a new deal to impose fiscal discipline and cost-cutting measures.
The lack of resolution has recently sent Portugal's bond yields surging to record highs. Although liquidity measures by the European Central Bank have lowered the borrowing costs of Italy and Spain, Portugal is widely viewed as the next domino to fall in Europe's debt saga.
U.S. treasuries gained for the fifth consecutive day as disappointing U.S. economic data coupled with the lack of resolution over the Greek debacle weighed on sentiments.
Sources: DJ Asian Newswires, Bloomberg & others. |
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Tuesday, 31 January 2012 | U.S. Equities Fell while Bonds and the Dollar Rose.
The Dow Jones Industrial Average inched down 0.1% at 12653.72 while the Standard & Poor's 500-stock index shed 0.3% to 1313.01. Dow Jones sectors were mixed with telecommunications leading gainers while consumer goods lagged.
Nervousness about European debt also weighed on financials, as European leaders gathered in Brussels amid talk of requirements for greater fiscal discipline among members, and increasing anxiety about the lack of progress on a Greek debt-restructuring deal.
Greece's efforts on getting private bondholders to accept a deeper write-down on existing debt hit stumbling blocks, with fears of a deal collapse spooking investors. That in turn prompted a sell down from the Euro into safe havens like U.S. Treasuries and the dollar.
However, it was the Japanese yen that came up tops against the dollar as the safe-harbour of choice for traders. Investors remain mindful of the Federal Reserve policy decision to keep borrowing costs low until 2014 at least.
Demand for U.S. Treasuries continued as Europe shook investor confidence once again. Euro-zone fears resurfaced on a number of fronts, curbing recent hopes market participants had about Greece reaching a bond-swap deal with its private lenders.
Sources: DJ Asian Newswires, Bloomberg & others. |
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