Just Stay Where The Sun Kisses

Published by Filipe R. Costa on Tue, 21/08/2012 - 11:35
sunny

Daily Market Commentary for August 21: Enthusiasm is huge but not with markets, as investors prefer to stay on holidays these sunny days of August. Merkel and Draghi are giving some hopes for who is expecting the ECB to act but for now that’s just a mirage.

If you are on holidays, just stay when the sun kisses everyday and avoid the cloudy markets that are waiting for September to get a real direction. Things have been bullish but the senior risk managers are out for now, and junior positions don’t allow for too much trading so they have to keep thing inside tight bands until senior managers return.

Spanish leaders are breathing deeply today as they persuaded bond traders to buy new debt issues from the country. Auctions for 12-month and 18-month debt were a success today and yields were down to 3.07% and 3.335% respectively. In the last auction yields were at 3.918% and 4.242%, so today’s auction was really a success.

The Chicago FED national activity index recovered this month from its July values but shows that economic activity is still below its historical trend.

Today markets are rising again but enthusiasm is limited and it will likely stay this way so take your time and go to the beach!

Name Last price Close Price % 5-Day % YTD %
Silver (LBM) $ 20/08/2012 28.45 1.03 1.97 1.75
Gold (LBM) $ 20/08/2012 1619.2 0.19 0.15 3.34
EUR/USD - US$ per Euro 20/08/2012 1.2352 0.15 0.21 -4.65
Nasdaq 100 Index 20/08/2012 2784.33 0.14 2.04 22.24
GBP/USD - US $ per £ 20/08/2012 1.571 0.1 0.22 1.16
Nikkei 225 20/08/2012 9171.25 0.1 3.22 8.47
EUR/GBP - £ per Euro 20/08/2012 0.7862 0.06 -0.01 -5.64
S&P 500 20/08/2012 1418.13 0 1 12.76
Dow Jones Industrial Average 20/08/2012 13271.6 -0.03 0.78 8.63
DAX (Xetra) 20/08/2012 7033.68 -0.1 1.79 19.25
CAC 40 20/08/2012 3480.58 -0.22 1.58 10.15
USD/JPY - JPY per US$ 20/08/2012 79.35 -0.26 1.28 3.2
FTSE 100 20/08/2012 5824.37 -0.48 -0.13 4.52
FTSE MIB 20/08/2012 14972 -1.01 3.02 -0.78
IBEX 35 20/08/2012 7469.6 -1.21 5.66 -12.8
Crude oil (Light Sweet) Composite 20/08/2012 96.16   3.86 -2.87