Monthly Archives: February 2010
4th Quarter Growth Rate Not Expected to Continue
The US economy closed out 2009 on a high note, growing at a rate of 5.9 percent over the final three months. This was slightly better than the Commerce Department’s estimate of 5.7 percent but experts say the economy will not maintain the torrid pace into 2010. Continue reading
Blizzard Slows Market!
The most snow that we’ve seen in the NYC area is bound to slow markets today as participants struggle to make it to work. The fact that today is a Friday doesn’t help the situation either. Continue reading
Oil Set for Monthly Gain as Economy Recovers, Stockpiles Drop
Crude oil is poised for the biggest monthly advance since October as the U.S. economy starts to recover and fuel inventories fall. Continue reading
U.K. Emerges From Recession at Faster Than Estimated Pace
Britain emerged from recession at a faster pace than previously estimated in the fourth quarter, providing a boost for Prime Minister Gordon Brown as he prepares for a general election within weeks. Gross domestic product rose 0.3 percent from the third quarter, compared with a previous calculation of 0.1 percent growth, the Office for National Statistics said today in London Continue reading
Senators urge U.S. to combat China currency policy
A bipartisan group of 15 U.S. senators on Thursday insisted China’s currency practices are effectively a subsidy and urged Commerce Secretary Gary Locke to consider action against Chinese imports. “There can be no doubt that China’s policy of large-scale intervention in the exchange markets and the significant undervaluation of its currency acts as a subsidy to Chinese exports,” the senators said in a letter that increased pressure on President Barack Obama to deal with the currency concern. Continue reading
Japan Production Rises Most Since May, Retail Sales Rebound
Japanese manufacturers increased production at the fastest pace since May and retail sales snapped a 16-month slump, signaling the recovery is intact even as the government calls for more action to fight deflation. Factory output rose 2.5 percent in January from a month earlier, the 11th straight gain and the longest streak in more than 12 years, the Trade Ministry said today in Tokyo Continue reading
EURO-Greek woes disguised by month end-extensions
It’s Friday, the market is jaded. With most of the US East Cost buried under the white stuff, fear mongering from rating agencies, national strikes, dovish Fed rhetoric, and possible coup attempts, it is no wonder that FX traders want to close shop early. The past five trading day’s will fill economic and history books for years to come. Continue reading
Greek Comedy or Tragedy?
Overnight, the ratings agencies added fuel to the fire in the Euro zone by claiming that further downgrades of Greek debt could be forthcoming. In addition, the market is catching on to the fact that in the UK, the debt situation is on par with that of Greece, making it vulnerable as well. Because the UK is not governed by Euro zone policy, they have been flying under the debt radar as there are no other member states to complain about their economy. Combine this with disappointing European consumer confidence figures and rising unemployment in Germany, and you have a potentially explosive situation. What this all adds up to is risk-aversion, which means that we’re seeing Japanese yen and US dollar strength, to go commodity currency weakness. Equity markets are lower across the globe and both gold and oil are trading lower Continue reading
Greek Comedy or Tragedy?
Overnight, the ratings agencies added fuel to the fire in the Euro zone by claiming that further downgrades of Greek debt could be forthcoming. In addition, the market is catching on to the fact that in the UK, the debt situation is on par with that of Greece, making it vulnerable as well. Because the UK is not governed by Euro zone policy, they have been flying under the debt radar as there are no other member states to complain about their economy. Combine this with disappointing European consumer confidence figures and rising unemployment in Germany, and you have a potentially explosive situation. What this all adds up to is risk-aversion, which means that we’re seeing Japanese yen and US dollar strength, to go commodity currency weakness. Equity markets are lower across the globe and both gold and oil are trading lower Continue reading