Archive for February, 2016

German Economic Sentiment Slips

Tuesday, February 16th, 2016

Via the FT: an hour ago by: Financial Times The pessimistic atmosphere in global stock markets this year is weighing on investors and analysts in Europe’s largest economy. The closely-watched ZEW index of current economic sentiment for February clocked in at 52.3, below expectations of 55 and January’s reading of 59.7. An index tracking expectations ...

Credit Spread Summary From Friday

Tuesday, February 16th, 2016

An excerpt from an article by Bob Elson at Bloomberg: * Bloomberg US IG Corporate Bond Index OAS at 220.2 vs 220.8, a new wide since Jan. 2012; 129.6 was 2015 low * 2014 high/low 144.7/102.3 * BofAML IG Master Index at +220 vs +221, the new wide for 2015/16 and widest level since June ...

Saudi Arabia, Russia and Others in Accord on Production Levels

Tuesday, February 16th, 2016

Via the WSJ: Saudi Arabia, Russia, Qatar, Venezuela Agree to Freeze Oil Output at January’s Levels Move depends on other major producers following suit, officials said By Summer Said Updated Feb. 16, 2016 5:01 a.m. ET Saudi Arabia, Russia, Qatar and Venezuela said Tuesday they wouldn’t increase crude-oil output above January’s levels as long ...

Early FX Musings

Tuesday, February 16th, 2016

Via Kit Juckes at SocGen Asian equities are higher across the board, oil prices are stronger and gold prices are softer as the improvement in risk sentiment lasts into a third trading day. A pretty sparse calendar sees a re-hearing by Germany's Constitutional Court on the legality of the ECB's OMT, ...

Early Tokyo Trading

Monday, February 15th, 2016

One dealer in an early update reports trading account sellers of 5s 7s and 10s with some support for 10s around the 1.80 level in which he said his firm did not see the flow.

Saudi and Russian Oil Ministers to Meet

Monday, February 15th, 2016

I am betting that they will not be praising the virtues of the free market. Via the WSJ: By Summer Said and Benoit Faucon Updated Feb. 15, 2016 7:45 p.m. ET The energy ministers of Saudi Arabia and Russia—the world’s two largest crude-oil exporters—are set to discuss production in Qatar on Tuesday, OPEC delegates said ...

Market Volatility Affecting Global Economies

Monday, February 15th, 2016

At least that is what Wolfgang Schauble (German Finance Minister) has posited. Via the WSJ: German Finance Minister Says Market Volatility Is Affecting Economic Conditions Wolfgang Schäuble says G-20 financial officials will discuss the uncertainties at their meeting next week By Andrea Thomas Feb. 15, 2016 2:59 p.m. ET BERLIN—German Finance Minister Wolfgang Schäuble said ...

Trading the Next Bear Market

Monday, February 15th, 2016

Bloomberg has an interesting story which reports that in order to meet budgetary restraints banks are dumping staff with the largest salaries. I have maintained forever that when rares some day do rise in serial fashion it will be true debacle as there will be no institutional memory of the ...

Negative Rates Have Investors Crying “Au”

Monday, February 15th, 2016

Via WSJ: By Richard Barley Feb. 15, 2016 6:18 a.m. ET In an ideal world, evolution favors the promotion of desired characteristics while reducing the incidence of damaging traits. Financial markets, alas, are far from ideal. Take gold. Traditionally, one of the black marks against the yellow metal has been its absence of yield. ...

Ex Cathedra Pronouncement From Monetary Pope

Monday, February 15th, 2016

Via WSJ: By Tom Fairless and Todd Buell Feb. 15, 2016 9:54 a.m. ET The European Central Bank “will not hesitate to act” at its next policy meeting in March if it deems that recent financial-market turmoil or lower oil prices could weigh on inflation, ECB President Mario Draghi said on Monday. “The ECB is ...