Archive - May 20, 2011

• Netanyahu: U.S. "does not understand reality" (Reuters)
• Bank of Japan Refrains From Adding Stimulus (Bloomberg)
• Tepco Credit-Default Swaps Surge Above Levels BP Hit After Gulf Oil Spill (Bloomberg)
• IEA: More Oil Needed Urgently (WSJ)
• Obama Speech Elicits Conflicting Reactions (WSJ)
• Two top Fed officials say easy money still needed (Reuters)
• ECB Threatens Greek Funding (WSJ)
• Meredith Whitney Trips Over Her Muni Default Tale (Bloomberg)
• Watch out for tail risks hanging over Treasuries (FT)
• Spain Vote Threatens to Uncover Debt (WSJ)
• As we warned starting in December: Profit Margin Squeeze Continues to Grip the Economy (dshort)
• Capitalists Who Fear Free Markets (NYT)
• Drifting back to gold standard (The Hindu)

Gold and silver are higher again today with the debt laden dollar, euro and yen all being sold. News that China has become the world’s largest buyer of gold bullion and has seen investment demand double continues to reverberate in the markets and may have contributed to this morning’s strength. China becoming the world’s largest gold buying nation is very important. While informed analysts have been saying that this would inevitably happen much of the commentary and most of the public remain completely unaware of the huge implications that Chinese gold demand has for the gold market. Chinese investors bought 93.5 tonnes of gold coins and bars in the first quarter. China produced 340 metric tons of gold last year and consumption was about 700 tonnes, leaving a gap of nearly 360 tonnes. Demand is forecast to increase due to the growing wealth of the Chinese middle class and deepening inflation in China. What is most important and rarely covered is the fact that gold ownership by the Chinese public remains minuscule. Especially when compared to other Asian countries such as Vietnam and India.

S&P 500, Dow Jones, Nasdaq, Russell 2000, Nymex Crude Oil, Comex Gold, EURUSD, GBPUSD, USDJPY

A snapshot of the European Morning Briefing covering Stocks, Bonds, FX, etc.
Market Recaps to help improve your Trading and Global knowledge