Contributing Editors' Blog Entries

AVFMS's picture

Another boring session, worsened by year end inactivity… Good close. Fiscal Cliff haggling on-going with a positive spin this time and Risk riding high.Spain catching up and paring yesterday’s soft patch, as is Italy. ESToxx at the highest since Aug 2011. Credit very squeezed. EUR strong. Merry Mood!

"I Saw Mommy Kissing Santa Claus " (Bunds 1,42% +5; Spain 5,29% -12; Stoxx 2647 +0,7%; EUR 1,322 +50)

Marc To Market's picture

The US dollar is mixed. Softer against the European complex, but firmer against the dollar bloc. It is essentially flat against the yen. Equity markets are advancing and the Nikkei, which gapped above the 3-year downtrend line yesterday, extended its gains by another 1%. Spanish and Italian bond yields are lower. Japanese yields continue to edge higher, with the long-end of the curve continuing to steepen gradually. The 10-20 year spread is near a 13-year high, for example. The BOJ's Shirakawa met with Abe briefly (20 minutes, according to press reports). The last big event of the week is the BOJ meeting that concludes on Thursday.

Marc To Market's picture

Last week Eurogroup head Juncker warned that the situation tiny Cyprus was more worrisome than Greece.  While this seemed to be an exercise in hyperbole, sure enough Monday, a Cyprus official was quoted on the news wires warning of an imminent default.  

 

Hang on.  Didn't Cyprus reach a memorandum of understanding with the Troika ?  Indeed, it did. However, it will take some time to deliver the funds.  

AVFMS's picture

Utterly boring Monday session, worsened by year-end inactivity… Won’t get any better going forward, probably. Fiscal Cliff a cliff-hanger (I know, cheap)… Spain on the heavier side with contingent funding holes still popping up here and there.

"Jingle Bell Rock" (Bunds 1,37% +2; Spain 5,41% +4; Stoxx 2628 unch; EUR 1,317 +30)

Phoenix Capital Research's picture

 

 As I mentioned before, without a doubt 2013 will be a disastrous year for the global economy and for the financial markets. Things could get ugly before then due to any number of issues that are boiling just beneath the surface… but barring any sudden developments, most of the key players will try to hold things together into year end.

 

Marc To Market's picture

There was a lively start to trading as the yen gapped lower in immediate response to new of the LDP's  victory in the weekend elections in Japan.  The greenback traded around JPY84.55, the highest level since April 2011.  The euro traded to about JPY111.30, just below the year's high set in March near JPY111.45.  The Nikkei gapped higher.  

 

However, as the results were largely as expected.  The LDP and its traditional ally, the New Komeito secured a 2/3 majority, which will prevent the upper house, in which the DPJ has a majority, from blocking the new government. 

 

In addition, there is some speculation that the BOJ may stand pat at this week's meeting to enhance its negotiating position with LDP-led government.  Before the weekend, the consensus was for the BOJ to expand its asset purchases plan by JPY5-10 trillion in the face of data pointing to the second consecutive quarterly economic contraction.

Econophile's picture

While pundits argue about the whys and motives of the Sandy Hook shooter, our children are vulnerable to more attacks. Studies show that these mass murders are becoming more common. It seems now that one event inspires (if that is the right word) others to commit heinous acts of violence. Ignore the arguments about gun control, mental health intervention, and the need for the safety of our schools because the powers that be will debate them to no practical end. Here are two suggestions to protect our children NOW.