More Strength in Shipping

Jul. 1.10 | About: Guggenheim Shipping (SEA)

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In an attempt to give equal time to good news—there seems to be a bias towards the reporting of "bad" news these days—I show the latest version of the Harpex Shipping Index, which tracks the rates charged by container ships in the N. Atlantic. The very strong improvement in this index in recent months contrasts quite sharply with all the bad news coming out of Europe.

On that score, I would note that Greek credit default swaps have dropped over 200 bps in the past week, the euro is up about 5% from its early-June low, 2-yr euro swap spreads have fallen 15 bps from their late-May high, and the DAX index of German equities has outperformed the S&P 500 by 13% since the end of April; those are some distinctly positive changes on the margin coming out of Europe that haven't received much publicity.