Tuesday, July 30, 2013

Morning Memo: Tuesday, July 30, 2013

 ICYMI (In case you missed it)...see out post from yesterday:

Stocks and Bond Yields are Positively Correlated, Right? Not so fast!!

"Morning Memo" begins below this "NOTE for  NEWCOMERS" to "Morning Memo"...... Each morning, we post a short bullet-point list of noteworthy events, data, etc that find their way into the assessment of global markets.  It's far from complete and is not meant to be an exhaustive reconciliation of all things that could possibly impact stocks, bonds, currencies and commodities!  Rather, it's best viewed as a cryptic memo of "highlights", noteworthy items that took place in Asia, European and US hours.....and color-coded 'Red' for seemingly negative impact on equity markets, 'Green' for positive.
This will also serve as a useful review mechanism, as scrolling through the series of "Morning Memo" posts over time ought to summarily highlight what generally drove price action.  

We hope you find this useful and informative....and as always, that you'll share feedback!!  

5:20am ET...
  • South Korea's current account surplus fell in June from record highs in May reflecting slowdown in exports to China, South Korea's largest export market.
  • Japan..mixed data....household spending wte (worse than expected) in June, only up 0.4% y/y vs exp of over 1%.  Unemployment, though, eased to 3.9% fr 4.1%.  Industrial Output wte in June, but expectations for July were positive.
  • Australia..Home Building Approvals fall 6.9%, disappointing data given low interest rates which were meant to boost housing/economy.  RBA head says if economy needs boost then he could cut rates despite higher inflation.
  • India...left rates unched at 7.25%.  Said recent tightening moves could be undone over time and were meant to support the Rupee. Also cut GDP forecast to 5.5% fr 5.7%.   Rupee weakened to 60 vs USD.
  • China..injected money into money markets to offset monthend liquidity issues.
  • Asia markets mostly higher on weaker Yen boosting Japanese exporters and on Australia's central bank gov's comments re possible rate cuts.
  • German...consumer confidence measure highest in six years.
  • European markets mostly higher on the open, helped by Germany's consumer confidence #s.
  • Barclay's plans on approx $9bn rights issue to boost capital.
  • Fed two-day meeting starts today.
  • Corn...ytd prices down 30%!
  • US Gov't takes action against JPMorgan for alleged rigging power markets.  A $400mm settlement is expected to be announced today.
  • more later....

Please continue to visit Soos Global Market Musings for updates.
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(Please note: This article is solely meant to be thought provoking and is not in any way meant to be personal investment advice. Each investor is obligated to opine and decide for themselves as to the appropriateness of anything said in this article to their unique financial profile, risk tolerances and portfolio goals).
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