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---> Daily Market Review - Forex, Bonds, Commodities, Equities

11/19/2010
 
Weekly news Previous Actual Expected
Friday
12th of November
US consumer sentiment 67.7 69.3 69.0
Monday
15th of November
US retail sales MoM 0.6% 1.2% 0.7%
Tuesday
16th of November
US industrial Production MoM -0.2% 0% 0.3%
US Housing Index by National Association of Home Builders/Wells Fargo 16 16 --
Wednesday
17th of November
US CPI MoM 0.1% 0.2% 0.4%
US Housing starts 0.61mn 0.519mn 0.59mn
EIA Petroleum status report (in barrels) -3.3mn -7.3mn --
Thursday
18th of November
US jobless claims for week 11/13 2010 435k 439k 445k
US Leading Indicators MoM 0.3% 0.5% 0.6%

Equities - increase globally

  • Stocks in Asia inched higher led by technology and energy companies, after Dell Inc.’s profit beat analysts’ estimates
    • MSCI Asia Pacific rose 0.3% to 132.06 in Tokyo, with about seven stocks advancing for every six that declined
  • US stocks jumped on speculation Ireland will receive a bailout from the EU and on positive job and manufacturing data
    • S&P 500 gained 1.5% to 1,196.69 and DJIA added 173.35 points, or 1.6%, to 11,181.23
  • European equities jumped amid speculation Ireland will accept a bailout to help its troubled banks         
    • Stoxx 600 and Stoxx 50 gained 1.4% and 1.9% respectively
       

Bonds - Treasuries increase

  • Treasuries increased after Federal Reserve Chairman B. Bernanke said unemployment and disinflation are threatening the US economic recovery
    • 10 year yields dropped three basis points to 2.87% early morning in London
  • Irish bonds increased outperforming the German bunds as the Irish central governor said the nation will seek a “large loan”
    • Greek bonds gained as the government said it plans to cut its budget gap by 5 billion euros ($6.8 billion) next year
    • Irish 10 year yields dropped two basis points to 8.31% early morning in London. The spread over bunds narrowed 13 basis points to 542 basis points. The bund yield advanced 10 basis points to 2.70%, after climbing to 2.71%
  • Japanese bonds rose as the 10 year yields neared the highest in two months attracting investors
    • The yield on the 10 year bond fell 5.5 basis points to 1.07% as of 1:53 p.m. in Tokyo at Japan Bond Trading Co
       

Commodities - Oil and gold increase

  • Oil increased Thursday on increased risk appetite amid speculation Ireland will accept a bailout
    • Crude for December delivery rose as much as 65 cents, or 0.8%, to $82.50 a barrel in electronic trading on the New York Mercantile Exchange
  • Gold continued Thursday’s increase as the dollar declined against its major counterparts increasing demand for dollar hedging assets
    • Bullion gained 0.4 % to $1,358.40 an ounce at 3:31 p.m. Singapore time

Currencies - the euro increases

  • Friday, the euro headed for a weekly gain against the yen before reports that economists said will show German prices and consumer confidence increased
  • Friday, the euro held gains against the dollar on optimism a bailout for Ireland will prevent a fall in the region’s larger debt markets
  • Friday, the yen pared its weekly loss against major counter parts on speculation China will take further steps to curb its economy
    • The euro was at 113.68 yen as of 12:50 p.m. in Tokyo from 113.95 yen in New York yesterday. The common currency was at $1.3624 from $1.3643, after rising 0.8% yesterday
  • Friday, the Australian and New Zealand dollars declined against the yen, on worries China’s central bank will increase tightening measures to curb inflation and slow the nation’s overheating economy
    • Australia’s dollar fell to 82.41 yen as of 6:00 p.m. in Sydney from 82.68 in New York yesterday. The Aussie traded at 98.88 US cents from 98.99 cents yesterday in New York. New Zealand’s dollar fell 0.2% to 64.86 yen and was little changed at 77.83 US cents

Sources: Bloomberg, FT, WSJ


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