June 12th, 2012
in Gary's blogging
Premarket Commentary For 09-12-2012
“US EQUITY futures are holding up well and point to a higher open of some 0.45% following Monday's terrible showing”, reports the DailyFX. The SP500 futures has had a mixed morning as it was as high as 1309 and low as 1303 but evened out to 1304. The short ETF's have only lost about 0.55% this morning indicating much weakness remains in the markets and by 9 am there was an apparent reversal in the futures bright morning climb only to head back up again.
European markets are mixed today in the wake of mixed news coming from the EZ. The FTSE 100 in London is up 0.07% while the German DAX is off -0.02%. The CAC 40 in France is up 0.29%. The Asian markets closed down with the Hang Seng at -0.43. The Shanghai Composite down -0.70%. The Nikkei down -1.02%.
US NFIB small business optimism (May) comes in even at 94.4 versus 94.0 expected and 94.5 previous. What we need for the markets are better numbers and we are not getting them, plus the news from the Southern part of the EZ is disturbing.
Merkel to urge extended moratorium on protectionism at G20. She adds that her country is in very good shape economically, and that structural reforms can have good results, but not overnight. Merkel says higher borowing not the answer to euro woes. Euro is a "promise for the future"; Germany in "solidarity" with Europe. Right for Spain to request recapitalisation of banks. Merkel wants shared liability and shared control, calls for more Europe. Says discussing eurobonds "takes us down the wrong path".
Alithia, one of the largest newspapers (by circulation) in Cyprus (below), has said the country's government has asked Russia for a €5bn bilateral loan.
Mocked-up posters in Italy depicting German Chancellor Angela Merkel in a Nazi uniform, with a euro symbol instead of a swastika.
"You're paying for the bailouts, not the banks. Thanks a lot EMU."
SocGen: "Someone will throw a spanner in the Spanish rescue package and it would be odd not to expect it."
Spanish house prices fell 11.1pc year-on-year in May. Down more than 30pc since peak.
Francesco Caio, chief executive of Avio, a leading aerospace manufacturer, has told the Times Summit that the biggest crisis in business facing his country, Italy, is corruption.
Jeremy Warner gives this latest "euro fix" less than a month:
Like all the others, the latest fix seems to create as many problems as it solves. The euphoria in markets at Spain's rescue lasted all of a few hours; having bounded away at the opening, they ended broadly flat.
Spanish and Italian 10-year bond yields have eased slightly this morning. Spain down two basis points to 6.450, Italy back below the 6pc "danger level" after falling 3bps to 5.970.
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Written by Gary