Risk Assets Continue to Decline
Today's financial recap and tomorrow's financial outlook.
The major Asian and European indices were also in the red. Greece was a notable decliner after MSCI (NASDAQ:MSCI) cut the Mediterranean nation from developed country to emerging-market status due to a failure to meet criteria regarding securities borrowing and lending facilities, short selling, and transferability.
Elsewhere in international news, influential asset manager PIMCO announced this morning that there is a 60% chance of a global recession in the next three to five years.
Over in commodities, crude inventories increased by 2.5 million barrels last week, a drastic change from the 6.7 million barrel decrease during the week prior. Crude finished the day up 0.7% to just of $96.
Gold reversed its three-day downward trend, finishing up 1% on the day; bonds sold off as US Treasury yields continued their ascent.
Financial stocks were fairly weak on the day, with the Royal Bank of Scotland Group (NYSE:RBS) dropping more than 3% after CEO Stephen Hester announced that he will be stepping down from his position later this year. Likewise, yoga apparel maker Lululemon Athletica Inc (NASDAQ:LULU) again fell sharply on fallout from its recent announcement that its CEO would be stepping down.
Tomorrow's Financial Outlook
The weekly jobless claims report will be released tomorrow morning at 8:30 a.m. EDT. Initial claims are expected to come in at 350,000.
US retail sales will be released at 8:30 a.m. EDT tomorrow. The consensus month-over-month increase is 0.5%. Last month, retail sales came in at just 0.1%. US import and export prices will also be released tomorrow at 8:30 a.m. EDT. Exports are expected to have risen 0.1% and imports are expected to be flat.
The minutes from the latest Bank of Japan meeting will be released tomorrow night at 7:50 p.m. EDT.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter