Market Comment: March 09

By / March 9, 2012

Good morning, The main news driving markets this morning is the sigh of relief following the announcement that the Greek PSI deal passed, with 85% of private bondholders agreeing to a massive haircut and bond swap (no doubt the remaining 15% are hedge funds who hedged themselves with CDS expecting full repayment).  With private Greek… Read more

Market Comment: March 08

By / March 8, 2012

Good morning, As anticipated, the European Central Bank decided to maintain overnight interest rates at 1.00%.  The Euro remains unchanged even after scathing comments from ex-ECB board member Juergen Stark: “the balance sheet of the euro system isn’t only gigantic in size, but also shocking in quality,” pointing out that the quality of collateral posted… Read more

Market Comment: March 7

By / March 7, 2012

Good morning, Markets have caught a bid this morning following news that investors with nearly 40% of Greek debt have agreed to participate in the PSI swap, though still short of the necessary 75%.  A group of 30 investors holding €81bln have agreed to swap their bond holdings ahead of tomorrow’s deadline.  Markets are showing… Read more

Market Comment: March 6

By / March 6, 2012

Good morning, Markets are shedding risk, boosting the USD and Yen while punishing equities as Europe reported weak Q4 GDP and concern that Greece will not get the requisite 75% participation to pass the private bondholder swap. European Q4 GDP came in at -0.3%, confirming initial estimates.  Meanwhile, the housing market in England posted a… Read more

Market Comment: March 05

By / March 5, 2012

Good morning, Markets are soft while the USD trades stronger following weaker than expected European purchasing managers index (PMI) and a cut in China’s 2012 GDP estimate. China has announced that they have lowered their 2012 GDP estimate from 8% to 7.5%, the lowest level since 2004.  Crude oil has come off its high last… Read more

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