Market Recap: 11.17.2010
- Cash SPX trades in an 8 handle range. All subsectors finished within half-a-percent of unchanged. SPX closes unchanged at 1179. The DOW closes down 15 at 11008. The NASDAQ closes up 6 at 2476.
- The VIX closed down -.82 at 21.76.
- Tentative signs of stabilization in FX today. EURUSD consolidating around the 50% retrace of the whole down move from Dec ’09 to Jun ’10 (1.3510). AUDUSD’s fall from grace is halted ahead of pretty decent support below .9700. For the first time since the ugliness began, we found interest to wade back into risk – KRW and TRY especially. CNY is looking compelling as well – especially given the focus on EM inflation. USDJPY stabilizes as fixed income stabilizes. Cloud resistance above 55d support below.
- The rates market had another choppy session ultimately finishing mixed with the front end 1.5bps weaker and the 5-30yr sector unchanged to 3 bps weaker. After the CPI data came in particularly benign rates rallied into and through the Fed buy-back at 11am. Shortly after we revered course and sold off nearly 9bps into the close.
- Commodities were mixed today. The energy complex edged higher following very bullish DOE stats (crude drew an impressive 7.286mm bbl) but resumed its decline as the market digested weak demand figures and liquidated longs. Gasoil down the most, -2.7%, while NatGas soared +5.5% on a cold weather forecast for the coming weeks. Metals held their ground with silver outperforming, up +1.45% on the day, while gold and copper were relatively unchanged. Flow-wise, we continued to see real money long-rolling of gold. In ags, wheat was boosted on concerns over drier weather in the US plains, while cotton traded limit down, falling 4% on the prospect of curbed Chinese demand.
- Credit saw a bit of a pullback today, tightening a bit after the consecutive widening we have seen post the Fed. IG tightened by 2 bp’s to close at 92.50 the price of HY rose 0.3125 to close at 99.75.
- Tomorrow brings the US Philly Fed survey, UK retail sales, Swiss trade balance, and Swedish unemployment. We also have central bank meetings for the Philippines and South Africa.
Via Goldman Sachs Data