September 28, 2012

    Risk Aversion Leading Markets Lower

    By / September 28, 2012

    Market Comment Markets are quietly heading lower into the last day of the trading week and third-quarter; developments in Europe, primarily Spain, and Chinese growth concerns remain the primary drivers of markets, adding risk aversion this morning. More on Spanish Banks The stress test of Spanish banks will be released this morning and is weighing on European markets (-1% since the opening bell). It is speculated that Spanish banks will require 2.5x more capital than… Read more

    By / September 27, 2012

    Market Comment Markets are trading higher this morning following a 4-day slide on news of Chinese stimulus and better than expected US unemployment claims. Chinese Stimulus Expectations on the Rise Chinese industrial profits in August fell for the 5th straight month as the economic slowdown threatens to creep into its 7th quarter. Net income fell 6.2% in August as the drop in earnings accelerated through the summer (July: -5.4% & June: -1.7%). The central bank… Read more

    Spanish Protests Weighing on Global Markets

    By / September 26, 2012

    Market Comment Risk aversion continues to lead markets lower across the globe. European equities are down 2% as mass protests in both Spain and Greece have investors shedding risk while the US dollar has gained 25 basis points against the Loonie overnight. Spanish Protests Spanish 10y bonds are back above 6%, the highest level in nearly one month, driving the Euro lower by one-cent against the US dollar and 25 basis points against the Loonie…. Read more

    Market Comment – Chinese Central Bank Cash Injection">

    Market Comment – Chinese Central Bank Cash Injection

    By / September 25, 2012

    Market Comment Most asset classes are unchanged overnight; however, we are seeing commodities catch a bid. Crude Oil has regained 1% though the Canadian dollar has only gained 10 basis points against the USD overnight. Chinese Central Bank Cash Injection The Chinese central bank has added a record $46 billion to the financial system using reverse-repurchase agreements in an attempt to ease their ongoing cash crunch. This injection of cash will lower the probability of… Market Comment – Chinese Central Bank Cash Injection“>Read more

    Risk Aversion Weighs on Markets

    By / September 24, 2012

    Market Comment Markets are again shedding risk to begin another week following a slew of negative developments in Europe. Report of Funding Gap in Greek Budget News came out over the weekend that Greece is doing whatever it can to under-report its soaring budget deficit. Greece reported a budget deficit of €12.5 billion on Friday; however, the Troika (ECB, IMF and European Commission) reported the funding gap is nearly double this, or €20 billion. Europe… Read more

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