Market Wrap 6.30.09

Equity Market:

An unexpected drop in consumer confidence data saw equity indices fall on concerns the economic recovery will be slow. Lower WTI prices weighed on the major US averages after the release of consumer confidence sparked a flight to safety in the USD. In turn this saw Exxon (-0.95%) top the laggers table in the S&P 500 index. Following the initial downward move in equity indices, prices were range bound and trading sideways, though did move slightly higher after positive comments on the economy by Fed’s Bullard. Finally, at the closing bell DJI closed down 0.96% at 84447.53, S&P 500 closed down 0.85% at 919.34 and NASDAQ100 closed down 0.44% at 1477.25

Credit Market:

Treasury prices came under pressure in the closing stages of the session to finish lower after Fed’s Bullard said that Fed’s exit strategies are ‘unclear’. Initially, at the open prices plunged after a better than expected improvement in Case-Shiller housing data, though retraced that downward move after the release of disappointing consumer confidence data. Also, the Fed carried out its first coupon purchase of the week which yielded a lower than expected offer/cover ratio and supported a lift in prices. Finally, the closing hour saw Treasuries retreat on the back of comments from Fed’s Bullard after he said demand for liquidity programs is diminishing. At the pit close T-notes finished down 6+ ticks at 116.085.

Source: RANSquawk

Comments

[Gilgamesh]

Tankan number (Japanese) comes in way under at -48.

The Yen has just gone into tank mode, and the FX risk trade is off. $ surging; USD/CAD pushing to highest level since mid-May.

[Fidel Sarcastro]

Yeah, consumer confidence led to this AMs drop but I wonder; did you get advance notice like JPM and GS?

I trade the S&P futures at the CBOT and I've got to tell you, something was odd this morning. Over the last several weeks, if not months, the largest order to come into the pit was a 100 lot.

Today, however, JPM and GS were selling THOUSANDS. At what price you may wonder? Why that would be at 925.00 - 926.00 in the Sept contract.

Even when the earlier better-than-expected Chicago PMI was released it didn't diminish the resolve of JPM and GS to sell everything in site. It was, umm, like they knew something. Like they knew in advance what the confidence data would be.

But JPM and GS would never...ever...get special treatment - would they?