Spanish Woes

By / October 1, 2012

Market Comment Markets are quietly trading higher to begin the first day of the 4th quarter, opening October in the green, a month that has contained some of the worst financial collapses in history. Spanish Woes Only days after releasing their 2013 austerity budget, Spain has announced that they will be revising their 2012 budget targets lower as the government’s support of the financial sector caused “slippage” in their financial targets. It is widely expected… Read more

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

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