Monday, June 11, 2012

3 Things to Know Before Trading

3 Things to Know Before TradingPalm Beach, FL 6/11/12 (StreetBeat) -- Stocks were generally quite strong in Asian trade. The Hang Seng was up 2.4%, the Nikkei gained two percent and Shanghai was up one percent. Australia was closed. European indexes are higher this morning, but well off earlier highs. At the moment the Dax is up 1.4% and the Footsie is better by a third of a percent. US stock futures are up a quarter to a third of a percent as I write.

*So a EU100 billion rescue package for Spain’s banks has been organized by the euro area. There are details yet to be worked out: the formal request from Spain has not yet been made; the source of the funds, EFSF or ESM? must be determined; some collateral requests for the loans from Finland must still be squared up; bad feelings from other rescue package recipients such as Ireland and Greece, who had to sign on for harsh austerity are less than thrilled that Spain did not; and does this euro area loan to Spain put their deficit into an even more difficult state and will this deal mean that it must be assumed that all euro area countries are responsible for their own and each other’s banking systems?

*The yield on Spain’s 10 Year bond is up about twenty basis points on the day at 6.36%. The euro is up by just twenty-five pips on the day at 1.2543, well off the post banking rescue high hit overnight.

*The first of two rounds of French parliamentary elections went well for Hollande’s Socialist party, and it seems that after next week’s final round they could have the majority National Assembly.

*The Fed is scheduled to sell Treasuries today that are due to mature between 4/15/13 and 4/15/15; the results of the operation will be announced just after 10:00am CDT.

*SF Fed boss Williams is set to speak at 10:00am CDT.

StreetBeat Disclaimer

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