Equities Rise but Slowly

Published by Filipe R. Costa on Mon, 13/08/2012 - 11:01
eurobond

Daily Market Commentary for August 13: Equities ended last week in a good run, closing positive for the five-day period but the steam is not the same as it used to be.

Equities are moving slowly and it does not seem investors are willing to back them with strength at this point. When stocks go down, investors take the opportunity to buy them, but as the Dow approaches 13,200 steam is lost again. We will likely see this game occurring   and repeating for the remaining days of the month as investors are waiting for central banks to act.

The lack of action from the ECB and the lack of consensus in terms of what to do to the rising yields is concerning investors that abandoned the Euro at 1.24 and are in waiting mode. The AUD is also losing steam as China is losing steam and there is no announcement of further action so far. Many believed some easing could be announced during the weekend but that wasn’t the case.

This morning equities started in a poor mode but have been rising during the last hour. The Dow currently sits around 13,200 while the FTSE is around 5,845 mostly flat.

The Japanese economy was seen growing less than expected during the second quarter, at just 0.3% as consumer spending and exports are weakening. The strong yen is hurting exporters and may lead to intervention from the central bank.

Name Last price Close Price % 5-Day % YTD %
FTSE MIB 10/08/2012 14548.75 -0.72 3 -3.59
Nikkei 225 13/08/2012 8885.25 -0.07 1.82 5.09
CAC 40 10/08/2012 3435.62 -0.61 1.82 8.73
DAX (Xetra) 10/08/2012 6944.56 -0.29 1.15 17.74
IBEX 35 10/08/2012 7047.7 -0.88 4.32 -17.73
FTSE 100 10/08/2012 5847.11 -0.08 1.03 4.93
EUR/USD - US$ per Euro 10/08/2012 1.2286 -0.04 -0.79 -5.16
EUR/GBP - £ per Euro 10/08/2012 0.7831 -0.39 -1.09 -6.01
GBP/USD - US $ per £ 10/08/2012 1.5686 0.37 0.33 1
S&P 500 10/08/2012 1405.87 0.22 1.07 11.79
Nasdaq 100 Index 10/08/2012 2722.96 0.12 1.75 19.54
Dow Jones Industrial Average 10/08/2012 13207.95 0.32 0.85 8.11
Crude oil (Light Sweet) Composite 10/08/2012 93.3 -0.27 2.07 -5.76
Gold (LBM) $ 10/08/2012 1622.3 0.45 1.32 3.54