Monday, March 19, 2012

Market watch

A couple of things are diverging.

1. A sell of in the US bond market. See this 10 year treasury yield




2. Reversal of some short term funds from emerging markets

(Bloomberg)Asian currencies had a second weekly decline as an improving U.S. economy and the Federal Reserve’s decision not to embark on further monetary easing boosted demand for the dollar.

Malaysia’s ringgit led losses after the government reported factory production rose the least in six months in January following data last week showing the smallest increase in exports since 2010. The rupee posted its worst weekly losing streak for the year after policy makers left interest rates unchanged, citing inflation risks caused by higher oil prices.


http://www.bloomberg.com/news/2012-03-16/asia-currencies-slide-in-week-as-fed-stance-boosts-dollar-demand.html


3. High crude oil price is finally transmitted into gasoline price



http://www.marketwatch.com/story/gasoline-prices-rise-for-9th-straight-day-2012-03-18?siteid=rss

4. Low trading volume

(WSJ)Trading volumes are at historic lows this year, which could show that some of the country’s biggest investors still aren’t sold on equities.


http://blogs.wsj.com/marketbeat/2012/03/16/trading-volume-abysmal-but-corporate-buybacks-supporting-stocks/?mod=WSJBlog&mod=

I will be on the road for a week without blog access. See you soon.

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