Markets sell off on concerns about PortugalJuly 10, 2014 Posted by: Pete Karabatos
Global equity markets are under pressure on concerns that Portugal is experiencing financial stress, with Portuguese 10 year notes yielding 20 basis points more than yesterday. U.S. treasuries, gold, and the JPY are rallying as safe havens. U.S. ten year notes, which tested 2.60% yield yesterday, are now trading at 2.50%, a six week low. The USD was weaker following yesterday’s FOMC Minutes but has since bounced back. The market is interpreting the Minutes as being mildly dovish insomuch as the release didn’t alter market expectations for the timing of future Fed tightening.
• Australia's unemployment rate ticked up to 6.0% in June, from 5.9% in May, a decade high, due to an increase in the labor participation rate. More troubling however is that full-time employment fell while part-time employment increased, masking the extent of the continued labor market weakness.
• Producer prices increased by 4.6% year/year in Japan in June; a slightly higher pace than May.
• As expected, The Bank of England left their policy rate unchanged at .50%
• The U.K. trade deficit hit four month highs on anemic exports.
• U.S. jobless claims fell by 11,000 to 304,000 for the week ended July 5, better than expected.
07/11 GBP: Construction Output (May)
07/11 CAD: Unemployment Rate (June)
07/14 EUR: Eurozone Industrial Production (May)
07/14 CAD: Home Price Index (June)
07/15 GBP: Consumer Price Index (June)
07/15 USD: Retail Sales (June)
07/16 GBP: Unemployment Rate (May)
07/16 USD: Producer Price Index (June)
07/17 EUR: Eurozone Consumer Price Index (June)
07/17 USD: Housing Starts (June)
07/18 EUR: Eurozone Current Accounts (May)
07/18 USD: University of Michigan Consumer Confidence (June)
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