Activity Is Still Preventing This Market

(Reuters) - The yen turned higher on Monday while riskier currencies like the Australian dollar came off highs as support from surprisingly strong Chinese factory data faded and investors took a cautious view of prospects for the global economy. The euro was steady, staying near a one-month high against the dollar but remaining vulnerable to renewed bouts of selling as a weak euro zone manufacturing activity survey highlighted a grim outlook for the region. The single currency was helped by falls in Italian and Spanish bond yields, although trade was e "It seems like investors remain cautious with service sector data from China still to come this week and nothing to indicate an imminent policy response from the Chinese to the slowdown in their economy," said Valentin Marinov, head of ...

(Reuters) - The yen pared losses on Monday and riskier currencies like the Australian dollar came off highs seen in Asia as support from surprisingly strong Chinese factory data faded and investors were cautious on the outlook for the global economy. The euro barely reacted to a purchasing managers' index showing manufacturing in the euro zone shrank in March, and at a faster rate, as fx volumes fell ahead of the Easter holidays. The high-yielding Australian and New Zealand dollars, which are positively correlated with risk-seeking behavior, pared gains after a report on Sunday showing activity at big Chinese factories hit an 11-month high in March failed to convince market players to take fresh positions in riskier assets. "It seems like investors remain cautious with service sector ...

Weekly Economic and Financial Commentary U.S. Review Housing Indicators Pulled Back, but Don't Be Alarmed This week, the economic calendar was chock-full of housing market data. While housing indicators painted somewhat of a mixed picture, with nearly all housing market indicators unexpectedly declining on the month, we continue to see real improvement. That said, much of the pullback was due to the mild winter, which likely exacerbated the seasonal adjustment process. Housing starts unexpectedly fell 1.1 percent to a 698,000-unit pace in February. January starts, however, were upwardly revised to a 706,000-unit pace, the highest level since October 2008. Housing Indicators Pulled back, but Don't Be Alarmed This week the economic calendar was chock-full of housing market data. ...

The past two days have been mixed on markets after the final approval from the finance ministers on the second Greek bailout. After the market bought the expectations that Greece will avoid a messy default, now that it is realized, investors fear the lingering weak economic status and that the bailout was not at all a fix to the ongoing debt crisis! Skeptic investors worry that the bailout might not be the end road for Greece or what will happen once the bonds are swapped, as there remains a shortcoming in details provided so far. The euro nonetheless is holding its ground around $1.32 and that is preventing the euro from surrendering the bullishness; nevertheless, this will not last without new flow of fresh upbeat data. Investors eye Germany’s IFO confidence figures today to support ...

Weekly Economic and Financial Commentary : 29/01/2012 U.S. Review Less Strength Than Meets The Eye Real GDP grew at a 2.8 percent annualized rate during the fourth quarter, but the underlying data show the economy has less momentum going into 2012. Durable goods orders and shipments rebounded solidly in December, casting some doubt on the earlier weak readings and bringing the data more closely in line with anecdotal reports and regional manufacturing surveys. Expectations for a housing rebound may have gotten a little ahead of themselves. New home sales fell slightly in December, and sales remain stuck near their average for the past 8 months. A Little Less Strength than Meets the Eye Real GDP grew at a 2.8 percent annualized rate during the fourth quarter. Growth was ...

(Reuters) - Brent crude slipped below $110 on Thursday on increasing signs of further economic slowdown in Europe, a risk underscored by Goldman Sachs (GS.N) analysts who warned of a possible sharp drop in demand. Brent crude started December on a weaker tone, falling $1.33 to $109.19 by 6:12 a.m. ET to reverse a modest gain in earlier trade. U.S. crude prices were trading 28 cents down at $100.08 a barrel by the same time. Trading volume was relatively thin for both contracts. "We continue to view the crude oil market as navigating between the currently tight physical oil markets and the threat that the European debt crisis could trigger a global economic recession in the near future, which would lead to a sharp drop in oil demand," Goldman Sachs analysts led by David Greely said in a ...

Last week, the jittery sentiment continued in markets, pushing demand on commodities and equities to the downside and increasing the resort to low-yielding currencies as central banks started to loosen monetary policy once again to salvage their economies from relapsing into another recession. Eyes were on monetary decisions and announcements by policy makers from major economies to see their action against the slowdown in growth path and escalating European debt woes. After the end of the wave of large spending by governments seen since the eruption of the crisis in 2008, once again talks are back that more stimuli are needed to reinvigorate the fragile recovery. The Fed Chairman, Ben Bernanke, said there are “significant downside risks” to the economic outlook of the U.S. and said the ...

Weekly Economic and Financial Commentary : 23/09/2011 U.S. Review Shake It Up, Benny, Now Having already committed to maintaining a low Fed funds rate, policymakers are considering other options and trying out different dance steps to spur recovery. Will a reallocation of the Fed's holdings of Treasuries and more purchases of MBS spur recovery? Virulent selling on Wall Street seemed to have been sparked by concerns beyond slow growth in the U.S. economy. Domestic data, while somewhat underwhelming, was not too bad. A slip in housing starts was offset by a gain in permits, existing homes sales jumped, and jobless claims came down slightly. Financial Markets Looking Beyond the U.S. Economy In a week during which major equity indexes like the Dow Jones Industrial Average plunged ...

The Weekly Bottom Line : 12/09/2011 HIGHLIGHTS OF THE WEEK United States Policymakers took the floor this week. The main highlight was President Obama’s speech to Congress in which he announced a $450 billion stimulus package aimed at the struggling job market. The President’s plan is composed of a mix of tax cuts and spending initiatives. The biggest item is a reduction in the payroll tax rate for employees and employers and a payroll tax holiday for employers adding additional workers. Spending priorities are focused on infrastructure and funding to state and local governments to prevent further layoffs. Should the plan be passed (and this is all but certain) it will provide a modest lift to economic growth over the next year. Nonetheless, the biggest drags on U.S. growth ...