Fully Concentrated On The Critical

Another positive week for Europe comes to an end; however, we can see the European common currency ended this week with losses as the unexpected cheerful jobs report for the world's largest economy sent the euro to the downside as the U.S. dollar gained momentum on stronger recovery prospects and better projections for economic growth. This critical week was in focus during the entire sessions, where this week contained the European Summit in addition to the several important fundamentals from major economies along with several bond auctions in Europe, which pulled all the attention and forced investors to remain fully concentrated on the critical events. This week started with the important European session in Brussels, where European leaders for the first time were able to meet market ...

Weekly Economic and Financial Commentary U.S. Review Weak Economic Numbers and Political Impasse First-quarter GDP was revised up to 1.9 percent growth versus a previously reported 1.8 percent. On the negative side, both the GDP price deflator and the core PCE deflator were revised up. Meanwhile, the political arena remained at an impasse, where Republicans are standing put on the issue of the debt ceiling and Democrats are still asking for increases in taxes. The two parties have been negotiating for more than three months on the issue, and it seems they are going nowhere. Mixed Data Confirms U.S. Economic Weakness Whenever we talk about the U.S. economy, we always say that it is, if not the most, one of the most efficient economies in the world. We could even apply the saying, ...

The Week Ahead Highlights Risk retreat continues, may accelerate The ECB gives the market a reality check Germany risks raising ECB's ire Slim chance of a rate hike from the BOE No major changes expected from Bank of Japan Crude oil searching for direction Key data and events to watch next week Risk retreat continues, may accelerate Risk assets (stocks and commodities) continue to slide lower after topping out in early May on signs the global recovery was losing steam. Incoming data continues to highlight a slowdown in major developed economies, and the main question is whether this is only a temporary soft patch or the start of a more ominous deceleration in growth. Optimists can point to temporary factors, like the surge in energy prices, as the cause for ...

Weekly Economic and Financial Commentary U.S. Review Disappointing Jobs Report Gives Fed Ammunition * Nonfarm employment fell sharply by 95,000 jobs in September, which was far worse than expected. The wild card factor during the month was clearly government jobs, which fell by 159,000 jobs. * We continue to expect moderate growth, but the bevy of disappointing economic data should give the Fed the latitude necessary for more quantitative easing. * The ISM Non-Manufacturing index came in at 53.2 due to increases in new orders, supplier deliveries and employment. The Door is Open for More Quantitative Easing Nonfarm employment fell sharply by 95,000 jobs in September, which was far worse than expected. The wild card factor during the month was clearly government jobs, which ...