Italian PM Monti hits the tape, telling Dow Jones a majority of the EU states favor common eurobonds. Unfortunately, tweets ZH, the ones that oppose them are the ones that pay the bills. [View news story]
The euro hit a 22-month low against the dollar yesterday, and has lost 5% in the last 3 weeks after barely moving against the dollar for most of the year. There's no end of reasons, though a notable downward driver is confirmation from some of Europe's biggest fund managers that they've been dumping euro assets on Grexit concerns. [View news story]
Conundrum....as the euro has lost value as well the stock markets... the 2 year euro swap spread is now relatively unchanged ( although there has been a spike during this 3 week period)...
Is The Decline In New Jobless Claims Losing Momentum? [View article]
I follow a shorter moving average based on non seasonally adjusted jobless claims...it is a pattern recognition model and it shows continued downward momentum....
U.S. Flash PMI (first ever) for May 53.9 vs. April's final read of 56.0. It indicates the slowest level of expansion in three months. New Orders 54.8 Vs. 56.9. Backlogs of Work 51.7 vs. 52.2. Input prices 56.3 vs. 63.1. Output prices 52.8 vs. 53.9. [View news story]
"The volume of new export orders also increased, up for the seventh consecutive month in May."
"Pencil in" another LTRO announcement at the ECB's July meeting, says JPMorgan, also predicting a 25 basis point rate cut for September. The bank cites today's PMI reads as the final straw to stir the ECB to action (then why wait until September?). Something is clearly up in the currency markets, where the euro has spiked higher vs. the dollar and, more interestingly, against the Swiss franc. [View news story]
Hmmmm...2 year euro swap spread keeps sliding off...
U.S. Flash PMI (first ever) for May 53.9 vs. April's final read of 56.0. It indicates the slowest level of expansion in three months. New Orders 54.8 Vs. 56.9. Backlogs of Work 51.7 vs. 52.2. Input prices 56.3 vs. 63.1. Output prices 52.8 vs. 53.9. [View news story]
Expect the ECB to respond to Greece by holding another LTRO, says Commerzbank's chief economist, adding he expects the bank to take its time about announcing such. "The growing uncertainty is poison for the economy," he says. He predicts a cheaper euro, not because of a run, but because the ECB will have the loosest monetary policy. [View news story]
The Treasury sells $35B in five-year notes at 0.748%. Bid-to-cover ratio of 2.99, vs. a recent average of 3.0; indirect bidders take 42.6%, vs. a recent 43.7%. Direct bidders take 6.5%, vs. a recent 12.2%. [View news story]
5year note at .748...average interest rate of U.S. government debt 2.13%
McDonald's (MCD -0.6%) plans to sell $750M worth of 3-year and 7-year notes amid an aggressive plan to hire 70K workers in China and ramp up store openings. The company paid a record-low 3.70% on a 30-year issue floated earlier this year. [View news story]
MBA Mortgage Applications:+3.8% vs. +9.2% last week. Thirty-year fixed mortgage rate with conforming loan balances ($417,500 or less) decreased to 3.93% from 3.96%. [View news story]
Stocks: Why One More Major Correction Still Lies Ahead [View article]
Secular bear markets outside the modern era??...no FDIC...no
Federal Reserve...no computerized trading...for that matter no modern
air conditoning
Italian PM Monti hits the tape, telling Dow Jones a majority of the EU states favor common eurobonds. Unfortunately, tweets ZH, the ones that oppose them are the ones that pay the bills. [View news story]
The euro hit a 22-month low against the dollar yesterday, and has lost 5% in the last 3 weeks after barely moving against the dollar for most of the year. There's no end of reasons, though a notable downward driver is confirmation from some of Europe's biggest fund managers that they've been dumping euro assets on Grexit concerns. [View news story]
the 2 year euro swap spread is now relatively unchanged ( although
there has been a spike during this 3 week period)...
The Treasury sells $29B in seven-year notes at a record-low 1.203%. Bid-to-cover ratio of 2.8, vs. a recent average of 2.58; indirect bidders take 42.7%, vs. a recent 38.7%. Direct bidders take 15.7%, vs. a recent 15.5%. [View news story]
Is The Decline In New Jobless Claims Losing Momentum? [View article]
jobless claims...it is a pattern recognition model and it shows continued downward momentum....
Is The Decline In New Jobless Claims Losing Momentum? [View article]
jobless claims is dropping at a decent rate...900 this week to 388,447...
U.S. Flash PMI (first ever) for May 53.9 vs. April's final read of 56.0. It indicates the slowest level of expansion in three months. New Orders 54.8 Vs. 56.9. Backlogs of Work 51.7 vs. 52.2. Input prices 56.3 vs. 63.1. Output prices 52.8 vs. 53.9. [View news story]
up for the seventh consecutive month in May."
Shouldn't this be going down???
"Pencil in" another LTRO announcement at the ECB's July meeting, says JPMorgan, also predicting a 25 basis point rate cut for September. The bank cites today's PMI reads as the final straw to stir the ECB to action (then why wait until September?). Something is clearly up in the currency markets, where the euro has spiked higher vs. the dollar and, more interestingly, against the Swiss franc. [View news story]
U.S. Flash PMI (first ever) for May 53.9 vs. April's final read of 56.0. It indicates the slowest level of expansion in three months. New Orders 54.8 Vs. 56.9. Backlogs of Work 51.7 vs. 52.2. Input prices 56.3 vs. 63.1. Output prices 52.8 vs. 53.9. [View news story]
Tiffany (TIF): Q1 EPS of $0.64 misses by $0.06. Revenue of $819M (+8% Y/Y) beats by $3M. (PR) [View news story]
Expect the ECB to respond to Greece by holding another LTRO, says Commerzbank's chief economist, adding he expects the bank to take its time about announcing such. "The growing uncertainty is poison for the economy," he says. He predicts a cheaper euro, not because of a run, but because the ECB will have the loosest monetary policy. [View news story]
Ripping The Bandage - Greece And The Eurozone [View article]
The Treasury sells $35B in five-year notes at 0.748%. Bid-to-cover ratio of 2.99, vs. a recent average of 3.0; indirect bidders take 42.6%, vs. a recent 43.7%. Direct bidders take 6.5%, vs. a recent 12.2%. [View news story]
McDonald's (MCD -0.6%) plans to sell $750M worth of 3-year and 7-year notes amid an aggressive plan to hire 70K workers in China and ramp up store openings. The company paid a record-low 3.70% on a 30-year issue floated earlier this year. [View news story]
MBA Mortgage Applications: +3.8% vs. +9.2% last week. Thirty-year fixed mortgage rate with conforming loan balances ($417,500 or less) decreased to 3.93% from 3.96%. [View news story]