21 June 2012: Markets under pressure, Germany faces EU contraction

Markets– Stocks under pressure, as Commodities also see sellers: Markets are under pressure as weak Chinese manufacturing data adds to global growth concerns. Some investors are also expressing disappointment at the lack of stimulus in the US by the Fed
•    Stocks: FTSE All World slips 0.3%, as FTSE Eurofirst is also down 0.3%; In Asia mood is bearish as FTSE Asia Pacific lost 0.7% but Tokyo’s Nikkei gained 0.8%; S&P 500 looks set to lose 0.2% on open; FTSE 100 has lost 0.35% to 5602
•    Currencies: Euro is down 0.2% at $1.2678 against Dollar; Sterling against dollar is down 0.05% to $1.5699
•    Debt: The German Bunds have lost 1bp to sit at 1.62% while US 10-years are unchanged trading at 1.65%; Spain’s yields finally fall below 7% and are at 6.57% mark
•    Commodities: Brent Crude lost 88 cents to sit at $91.87/barrel; Copper is down 1.2% today to sit at $3.35/pound; Gold is off almost 1% at $1598/ounce

Global Economy
•    Eurozone debt crisis weighs on Germany: The Eurozone contraction has hit Germany with a higher severity. Germany’s manufacturing is specially hit with lesser and lesser export requirements. The weaknesses put pressure on Policy makers to cut EU interest rates. Germany’s composite index has fallen from 49.3 to 48.5, but the manufacturing index has fallen to 44.7, which is a three year low.

Companies

•    Gulf of Mexico oil leases fetch $1.7 billion: Royal Dutch Shell, Stata and BP are the biggest spenders on the US govt’s auction on the Gulf of Mexico oil drilling rights. The three companies spent a combined total of almost $1 billion on 93 separate leases. Last auction had fetched only about $325 million following the BP oil spill in 2010.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s