· Markets were up on Friday NY time as the earning
season continues with JP Morgan leading the way.
·
JP Morgan reported their 2Q earnings
before the bell on Friday and after revising Q1
earnings lower and reporting a $4.4bn pre-tax loss in Q2 the bank’s CEO Jamie
Dimon said JP will probably post record earnings in 2012. EPS was 67c versus a
forecast of 76c while the bank said a worst case loss for the trading incident
would be $7.5bn. The stock surged 6% in the session, dragging the rest of the
S&P financial sector with it. Wells Fargo also reported in line with
expectations; it rose 3% on the day.
·
USDMYR opened a tad lower at 3.1750-3.1810 as it is still
stuck in the range trade, Asian currency did
not appreciate much as investor confidence on the underlying and also the China
slowdown is a drag on USD/Asia.
·
Despite Moody’s downgrading Italian
govt bonds by 2 notches, the Euro managed a good
rally and remains strong this morning, up a big figure from its Friday low,
last trade 1.2271. Spanish and Italian bond yields were up 3 and 15bps
respectively despite Italy auctioning 3yr bonds at a substantially lower yield
than in June (4.65% vs 5.3%).
·
Equity indices were in the black
across the board with the Euro Stoxx rising 1.39%;
the DAX was the best performer (up 2.15%) while the S&P added 1.65% and the
DOW climbed 1.62%.
·
Consumer confidence in the US
fell to a seven month low but is still at the
higher end of its post GFC range at 72. Also producer prices printed stronger
than expected on surging food prices.
·
Spanish lenders net
borrowings from the ECB jumped to a record €337bln in June. This
increased reliance on ECB funding blamed on a flight of deposits from Spanish
banks.
·
2012 voting FOMC member Dennis Lockhardt has indicated that unless the output and employment data picks up in
coming months he will be voting for additional asset purchases.
There are already 4/10 members who voted for additional purchases in July.
·
Watch out for more news on potential QE3!
No comments:
Post a Comment