Equity Markets continue to be volatile. Japan’s Nikkei 225 is currently off 1.27% after gaining 1.74% on Wednesday. European markets were down Wednesday with the FTSE 100 losing 60.26 points and the Stoxx Europe 50 giving up .83%. In the U.S, positive earnings once again kept equity markets afloat as the Dow managed to squeeze out a 7.86 point gain, to close at 11,124.92. The chart below shows the how the Dow has been trading relatively flat thanks to positive earnings compared to the Nikkei, which has been going through a mild correction since topping 11,000.
Equity Market Volatility
Commodities & Treasuries:
Oil and Gold continue to climb slowly back to their pre-S.E.C fraud charge handles. Although, Oil finished the U.S session with a small loss of 33 cents to close at 83.68. Gold managed to squeeze out a $9.60 gain as it advanced to 1,148.20. It touched an intra day high of 1,150 before retracing slightly. The 10yr Treasury Note yield fell yet again stemming from Greece’s Sovereign debt issue. There is also rising concern that the Treasury will reduce the size of its upcoming auctions starting as early as next week. The 10yr Treasury yield closed yesterday at 3.741%
The U.S Dollar gave up a little to ground to its G-7 rivals. The EUR was the only exception as Greece’s fiscal woes are still weighing heavily on the EUR. The EUR lost .32% to close at 1.3399. The DXY managed again to stay just above an 81 handle.
There are a number of prints due out today, starting with the Swiss Trade Balance. In the Euro-zone, German PMI for Manufacturing and Services will be released. In the U.S, PPI data is due out as well as weekly jobless claims. Jobless claims have unexpectedly been climbing so investors will be watching those numbers carefully. Another key release will be Existing Home Sales as many analysts believe a stabilized housing market will secure the current economic recovery.
- Alex Perlmuter
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