David's Feed
Mar 12, 2014
via Counterparties

MORNING BID – Copper, China and currencies

Markets start on the back foot this morning, with weakness overseas – and particularly in emerging markets – feeding through to a bit of strain on U.S. futures and a bit of flight to quality to the U.S. bond market.

The outlook for China once again comes into play, with the most recent fears being more corporate defaults in the world’s second-largest economy and the way in which copper imports are used in China as collateral to raise funds. So it’s all nicely intertwined here and has had a detrimental effect on both China’s stocks, stocks in various exchanges around the world, and of course the price of copper, which was down 5 percent in Shanghai.

Mar 11, 2014

World equities flat, gold edges up on Ukraine, China

NEW YORK, March 11 (Reuters) – Major world equity markets
were mildly negative on Tuesday, the euro edged down and gold
rose as traders kept an eye on tensions between Ukraine and
Russia and the pace of growth in China.

Credit market investors, meanwhile, were jumping all over
Puerto Rico’s $3.5 billion municipal bond sale, which attracted
huge interest from many types of funds, including hedge funds
and high-net-worth names.

Mar 11, 2014

NY state financial regulator to consider application process for bitcoin exchanges

March 11 (Reuters) – In a step toward eventual state
regulation of bitcoin exchanges, New York’s financial services
regulator on Tuesday said he wanted companies that want to
operate a virtual currency exchanges in the state to submit
formal applications.

In a statement, New York Superintendent of Financial
Services Benjamin Lawsky said a formal application process would
be a precursor to regulations it intends to propose by the end
of the second quarter.

Mar 11, 2014

World stock markets mostly flat, gold edges up on Ukraine, China

NEW YORK (Reuters) – Major world equity markets were mostly steady on Tuesday, the euro edged down and gold rose as traders kept a wary eye on tensions between Ukraine and Russia and the pace of growth in China.

Markets have taken a break from recent volatile trading, and moves in most major stock markets were relatively muted. An index of global stocks .MIWD00000PUS was trading around break even, while the benchmark U.S. S&P 500 nudged higher.

Mar 11, 2014
via Counterparties

MORNING BID – Puerto Rico in the spotlight

The market remains in a bit of a vacuum, with interesting activity focused on a few speculative investments that don’t necessarily suggest anything about the larger environment – though one could extrapolate from the interest in these myriad issues that the market is getting frothy, one way or another.

The island of Puerto Rico will sell about $3 billion in bonds to a varying group of investors on Tuesday, many of whom are likely not to be traditional municipal bond buyers. What’s interesting to see, as our muni team pointed out late Monday, is that the bonds appear set to sell at an 8-percent coupon, with yields somewhere in the mid-8s or high-8s. That’s nowhere near the 10-percent yield that some had expected. (Full Story)

Mar 11, 2014
via Counterparties

MORNING BID – Puerto Rico in the spotlight

The market remains in a bit of a vacuum, with interesting activity focused on a few speculative investments that don’t necessarily suggest anything about the larger environment – though one could extrapolate from the interest in these myriad issues that the market is getting frothy, one way or another.

The island of Puerto Rico will sell about $3 billion in bonds to a varying group of investors on Tuesday, many of whom are likely not to be traditional municipal bond buyers. What’s interesting to see, as our muni team pointed out late Monday, is that the bonds appear set to sell at an 8-percent coupon, with yields somewhere in the mid-8s or high-8s. That’s nowhere near the 10-percent yield that some had expected. (Full Story)

Mar 10, 2014
via Counterparties

MORNING BID – Long in the tooth

The common refrain, five years after the end of the market’s worst performance in decades (excluding the technology arena, yet to recover its highs from the tech bubble), is that this bull market is getting long in the tooth: It’s gone too far, too fast, and therefore, is due to end. We examined this in a story by Caroline Valetkevitch, just setting aside the hand-wringing about things ending or not, and throwing out a few things that really get at people. (Full Story)

One of those is the idea that the market hasn’t seen a correction in more than two years or so, though there’s some semantics here per Dan Greenhaus of BTIG. He notes that the 19.4-percent drop (peak to trough) in 2011 only doesn’t qualify as an ever-so-brief bear market by the slimmest of margins, and if you accept the idea that this was a bear, “the current rally isn’t five years old, it’s just two and a quarter.”

Mar 10, 2014
via Counterparties

MORNING BID – Long in the tooth

The common refrain, five years after the end of the market’s worst performance in decades (excluding the technology arena, yet to recover its highs from the tech bubble), is that this bull market is getting long in the tooth: It’s gone too far, too fast, and therefore, is due to end. We examined this in a story by Caroline Valetkevitch, just setting aside the hand-wringing about things ending or not, and throwing out a few things that really get at people. (Full Story)

One of those is the idea that the market hasn’t seen a correction in more than two years or so, though there’s some semantics here per Dan Greenhaus of BTIG. He notes that the 19.4-percent drop (peak to trough) in 2011 only doesn’t qualify as an ever-so-brief bear market by the slimmest of margins, and if you accept the idea that this was a bear, “the current rally isn’t five years old, it’s just two and a quarter.”

Mar 5, 2014

Reduced anxiety over Ukraine stabilizes world markets

NEW YORK (Reuters) – World markets were calm on Wednesday after two days of wild swings, with the United States and Russia set to hold talks on easing East-West tension in Ukraine.

An index of global equity markets clung to a slim 0.1 percent gain, currency and bond markets stabilized, and oil prices fell for a second day as the West stepped up efforts to persuade Moscow to withdraw its forces in Crimea and avert the risk of war. Russian President Vladimir Putin said on Tuesday that military force would be used only as a last resort.

Mar 5, 2014

Reduced anxiety over Ukraine stabilizes markets

NEW YORK, March 5 (Reuters) – World markets were calm on
Wednesday after two days of wild swings, with the United States
and Russia set to hold talks on easing East-West tension in
Ukraine.

An index of global equity markets clung to a
slim 0.1 percent gain, currency and bond markets stabilized, and
oil prices fell for a second day as the West stepped up efforts
to persuade Moscow to withdraw its forces in Crimea and avert
the risk of war. Russian President Vladimir Putin said on
Tuesday that military force would be used only as a last resort.

    • About David

      "David Gaffen oversees the stocks team, having joined Reuters in May 2009. He spent four years at the Wall Street Journal, where he was the original writer of the web site's MarketBeat blog. He has appeared on Fox Business, CNN International, NPR, and assorted other media and is the author of the forthcoming book "Never Buy Another Stock Again.""
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