MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
Flip Order
-
Today - Thursday, May 24
-
8:03 PM Japan's core consumer price index rose 0.2% from the prior year, identical to its gain for March. Expectations were for a 0.1% rise. On a monthly basis, core CPI was also 0.2% higher, led by a 2.1% rise in clothing and footwear. Overall CPI rose 0.1%, for a 0.4% year-on-year gain. 2 Comments
-
7:40 PM In the face of a nasty Greek exit from the euro zone, investors have little choice now but to cling to low-yielding U.S. government debt, says Pimco's Bill Gross. Despite our own debt mess, a flight from risk assets is going to continue to send money into Treasurys. "It's what we call the cleanest dirty sheet," Gross says, "At the moment the cleanest dirty shirt is the United States." 12 Comments
-
6:35 PM The loss of Japan's nuclear power plants is luring buyers eager for cheap U.S. shale gas, potentially enriching U.S. companies such as Sempra Energy (SRE) and Dominion Resources (D). But companies hoping to export LNG don't yet have permission from the Department of Energy to ship to countries such as Japan that lack free-trade agreements with the U.S. 2 Comments
-
4:53 PM Nothing was accomplished at today's EU summit as officials play for time - hoping Greek (and French legislative) elections in June bring more political support for the bailout regime and a move towards "economic union." The trouble is the pace at which not just Greece, but the EU economy is unraveling. Can they wait another month, and what happens if the elections don't go the right way? 2 Comments
-
3:28 PM 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. 6 Comments
-
3:20 PM In shades of Fannie and Freddie, Spain's bailout of Bankia - originally slated at about €5B, then €7-10B, and now €15B - may grow further as the lender is expected to request even more tomorrow to meet a viability plan set up by new management. Comment!
-
3:11 PM A Greek exit from EMU is imminent says Bank of Tokyo-Mitsubishi, with market chatter setting the timing for the weekend of June 2. The bank takes note of the relentless fall in the euro and comments from the Bundesbank that the exit will be controllable. The euro -0.5% and looking like it wants a $1.24 handle. 4 Comments
-
2:57 PM A new Greek poll shows the anti-bailout Syriza party gaining support, now garnering 30% of the vote against 26% for 2nd place New Democracy. The poll also shows 85% of Greeks prefer to stay in the euro. Another poll has Syriza and ND neck and neck with 23.5% of the vote. 2 Comments
-
12:30 PM Three lunchtime reads:
1) Nervous investors look beyond positive U.S. economic signs
2) China is a black box of misinformation
3) Time to enforce Sarbanes-Oxley in the JPMorgan scandal Comment! -
12:18 PM China's banks may fall short of their 2012 loan targets, say several officials, thanks to a drying-up in demand from their biggest customers - large state-owned firms. Bank loans dove 33% April and the May figures may be worse, with only ¥34B ($5.4B) advanced through May 20 (¥682B was loaned in April). The news seems to have hit stocks and the aussie dollar, off 40 pips in a few minutes. 3 Comments
-
11:53 AM Europe closes nicely higher as oversold conditions overpower an initial fall on ugly economic data (which may cause the ECB to act). Stoxx 50 +1%, Germany +0.5%, France +1.2%, Italy +0.9%, Spain +1.4%, U.K. +1.6%. Euro is flat after some big rumor-mill-induced swings, buying $1.2583. Comment!
-
11:44 AM Italy’s Eni (E +0.6%) says it has made a significant oil discovery in Egypt's Western desert, striking more than 250 ft. of net pay at its Emry Deep prospect. Eni plans further appraisal drilling at the find, which it now estimates to hold 150M-250M barrels of oil in place. 1 Comment
-
11:15 AM Repsol (REPYY.PK) says some of the areas it is exploring off the coast of Brazil contain more than 1B barrels of oil and gas, a development it hopes will help persuade investors its future remains bright even after Argentina's nationalization of YPF. But the areas may not start producing large amounts of oil and gas - and substantial cash flow - for several years. Comment!
-
10:25 AM As Royal Dutch Shell (RDS.A +0.8%) buys time to consider its response to PTT's bid for Cove Energy (CNVGF.PK), it must choose whether to make further divestments and/or delay its Australian LNG interests to pursue its Mozambique ambitions. RBC says PTT's offer values Cove's stake in a major gas field off Mozambique's coast at $3.4/boe vs. a normal valuation of $2.5-$3/boe for such assets. Comment!
-
10:17 AM The IEA reports U.S. carbon emissions fell by 450M metric tons in the past five years, but global emissions continue to rise, now at 31.6B metric tons. IEA attributes U.S. improvement to “policy driving greater efficiency and technology making shale gas production viable.” But abundant U.S. natural gas was more than offset by added coal burning in China and India. 1 Comment
-
10:11 AM The dive in the Swiss franc was the result of a small sell order, and not from a policy move, says a trader. The euro/franc cross has been pinned to CHF 1.2010 for much of the past month, so it didn't take a whole lot to move it. The cross remains higher, however, now at CHF 1.2037. Comment!
-
10:00 AM Greece's exit from EMU would be a good example for others, says the Bank of Russia's Mikhail Shvetsov, speaking in Milan. He also says Greece has plans for a parallel currency. "Merkel to Greece: come to mama, Putin to Greece: come to daddy," writes ZH. 5 Comments
-
9:43 AM An increasing number of forecasters in Reuters' monthly survey expect Brent crude to average less than $100/bbl next year thanks to Europe’s debt crisis, slowing Chinese economic growth and a possible resolution of the Iranian nuclear crisis. Macroeconomic risk from Europe will need to fade before crude oil market fundamentals dominate pricing again, says one. 3 Comments
-
9:39 AM "Price stability is the benchmark of well-being," says Mario Draghi in a speech (that thought must be very comforting to Greeks at the moment). The ECB's extraordinary steps averted a bank collapse, he says, but it is not the central bank's job to keep insolvent banks afloat. Continued EU integration needs "a brave leap of imagination." Comment!
-
9:23 AM That whoosh in the Swiss franc (nice pic here) comes on rumors about a Swiss tax on bank deposits to come into effect on June 1. 5 Comments
-
9:14 AM "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. 1 Comment
-
8:46 AM SABMiller (SBMRY.PK) tips off in its latest earnings release that beer drinking in the U.S. remains sluggish, with jointly-owned MillerCoors reporting domestic sales to retailers tailing off 2% Y/Y and sales to wholesalers dipping 3%. While the company blames the high unemployment rate in the U.S. for soft beer sales, the influence of craft breweries remains an underlying factor. 1 Comment
-
8:40 AM Best quote from the EU summit: Discussions about eurobonds were "not unheated," says Jean-Claude Juncker. (via Sara Eisen) 3 Comments
-
8:38 AM Moody's affirms France's AAA-rating and its negative outlook, saying it would raise its outlook if the country's debt metrics improve but would cut if its contingent liabilities increase. Moody's adds that France's plan for sustainable finances is positive. 1 Comment
-
8:34 AM How about a show of hands on who thinks the euro is headed lower, asked Goldman's Jim O'Neill at a January hedge fund conference, when the currency was about $1.26. Nearly every hand in the room shot up. Six weeks later, the euro was buying $1.35. "If Europe says something good," writes Upsidetrader, look for a big reversal in the euro, the dollar, and stocks. 3 Comments
-
8:21 AM Suntech (STP) CEO Zhengrong Shi says if Europe follows the U.S. in levying punitive tariffs on Chinese solar panel imports, it could deal a "lethal" blow to the industry. Beyond words, China signals it may retaliate against the tariffs, saying U.S. government backing for six clean energy projects in China had violated WTO rules and acted as barriers to trade. 1 Comment
-
8:02 AM The majority of steel mills in northern China have halted production, according to an analyst in the coal-trade business, putting more meat behind an earlier story about iron ore and coking coal buyers attempting to back away from orders. Not surprisingly, electricity producers seeing their own stockpiles of coal grow due to slumping demand for juice. 3 Comments
-
7:53 AM Aluminum producers in the province of Henan (China's largest producing province) have idled about 700K tons of capacity in recent months, says a senior official, with another 500K to be shut by year's end. The country in total has capacity of 23M tons, mostly at the high end of the global cost curve, thus making it particularly susceptible to weaker demand. Comment!
-
7:43 AM Weak Chinese property developers are in survival mode, says S&P, facing "spiraling upward" borrowing costs. Higher-rated companies are also facing higher rates and shorter terms, the agency's Chris Lee says, not expecting much of a property recovery even if the government eases policy. Comment!
-
7:30 AM 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. 2 Comments
-
7:22 AM More on China's HSBC PMI: Along with a decline in the headline number were falls in both input and output costs, perhaps giving greater scope for easier monetary policy (full report). Remember, this report covers smaller, privately-owned firms as opposed to the official PMI, where the companies have state support and better access to credit. Comment!
-
6:44 AM General Motors (GM) says it has no plans to move production from South Korea to Europe after speculation popped up that a move could be in the offing. The topic has become a hot-button issue in South Korea, where the nation's highly-agitated unions have threatened "war" with GM over any loss of production. 2 Comments
-
6:39 AM A decision from the EU's second highest court denies an appeal by Mastercard (MA) over excessive interchange fees charged on cross-border card payments. The company failed to convince the court that the fees were fundamental or that a significant number of European banks would stop using Mastercard if they were reduced. Comment!
-
4:33 AM UK Q1 GDP revised down to -0.3% Q/Q from -0.2% preliminary reading. GDP revised down to -0.1% Y/Y from 0.0% preliminary. Comment!
-
4:17 AM Confidence in Germany's business sector ticked down in May, with IFO's Current Assessment coming in at 113.3 vs. 117.5 in April. Business Climate comes in at 106.9 vs. 109.9 prior. Comment!
-
4:10 AM BOJ governor Shirakawa says the bank is committed to easing, but won't do so solely to weaken the yen. Shirakawa adds the "biggest factor affecting currency moves now is investors' risk aversion," and there's no evidence that an expanded monetary base will weaken the currency. Currently: USD -0.13% to ¥79.36. 1 Comment
-
4:04 AM Eurozone flash PMI composite index comes in at 45.9 in May, a 35-month low, vs. 46.6 expected and 46.7 previous. Manufacturing at 45.0 vs. 45.9 prior. Services at 46.5 vs. 46.9 prior. 4 Comments
-
3:46 AM German Q1 exports +1.7% Q/Q, a sharp turnaround from -1.5% in Q4. Imports flat Q/Q, up from -0.6% in Q4. Comment!
-
3:32 AM German flash manufacturing PMI at 45.0 in May, down from 46.2 in April. Services unchanged at 52.2. Composite output index at 49.6, down from 50.5 prior and a six-month low. Comment!
-
2:05 AM HSBC's flash estimate of China's PMI: 48.7, down from last month's 49.3. If the preliminary reading is confirmed on June 1, it will mark seven months of manufacturing contraction, bolstering the case for more stimulus. Comment!
-
2:01 AM German final Q1 GDP comes in at +0.5% Q/Q and +1.7% Y/Y, both in-line with preliminary readings. Comment!
Other date
Latest Global Articles
