World Market Update - North America

Market Highlights:

• Euro on the Defensive
• JPY Can’t Shake Recent Strength
• Bank of Canada Holds Rates

Euro on the Defensive

The US dollar has taken a bit of a breather today after making gains against most major currencies over the past couple of days. Yesterday’s big story was the downgrade of Greece’s debt by rating agency Fitch from A- to BBB+, citing the country’s banking system as the riskiest in Western Europe and dashing hopes that the European Central Bank would raise interest rates in the near future. Moody’s was also in the news, calling into question the AAA ratings of the US and UK, while downgrades of Dubai’s Read Full Article »

Market Highlights:

• Dubai World Debt Weighs on Markets
• Big Ben Speaks
• GBP Pummeled on Slew of Information

Dubai World Debt Weighs on Markets

Equity markets from across the globe sank lower overnight as fresh concerns surrounding Dubai World’s debt led the charge in dampening sentiment. Sliding as much as 6% at one point, Dubai’s DFM General Index was the catalyst in dragging down indices, most notably from emerging markets. While in the midst of its worst losing steak in close to five weeks, the MCSCI Emerging Markets Index added to its Read Full Article »

Market Highlights:

• USD Benefits from Position Trimming
• Bernanke Speech and CAD Building Permits
• Changing Market Sentiment

USD Benefits from Position Trimming

The USD is better bid across the board this morning, still receiving a boost from Friday’s better-than-expected Non-Farm Payrolls figure, which showed the rate of U.S. job destruction to be reaching a cyclical low – very good news for an economy built on the strength of consumer spending. Only the Japanese yen, which is benefitting from a general unwind of carry trade activity by way of position trimming rather than outright Read Full Article »

Market Highlights:

• Bank of America Boosts Markets
• Crude Slips, CAD Falls
• Ask Karl: Shiny Things

Bank of America Boosts Markets

News that Bank of America intends to repay $45 billion in borrowed government funds caused equity markets worldwide to climb, and prodded investors back into the search for yield. The VIX index, which is often used to measure investor nervousness, fell by three percent over the session, indicating an increase in risk appetite and increased confidence in the economic recovery. Markets have largely shrugged off last week’s concerns about Dubai. In keeping with recent patterns, the US dollar and the yen fell as investors sold them to buy higher-yielding currencies.

The Federal Reserve released the Beige Book report, summarizing current economic Read Full Article »

Market Highlights:

• Currencies Steady Overnight ADP
• Gold Over $1,200
• Aussie Retail Sales

Currencies Steady Overnight ADP

Currencies were steady during overnight trading, holding onto gains from yesterday’s “risk on” play. A general sense that the Dubai World debt repayment crisis was overblown, moderately positive equities in Asia, and a run on gold all have majors in a holding pattern against a weak USD. The Hang Seng and Nikkei both eked out gains overnight, at +0.8% and +0.38% respectively. With the addition of the Read Full Article »