Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Market Participants Reduce Risk Before New Years

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
Greece was another point of fear today. The US dollar weakened early on as the Chinese government made it easier for domestic banks to hold foreign currencies without having to hold high levels of reserves, which would reduce the depreciation pressure on the yuan. That pressure, plus the drop in the EURJPY FX cross lowered risk appetite globally, causing the weakness in European equities to drag into the US. The 10yr German Bund yield fell to a new low at 0.54%, as did the yields of France, Belgium, and Switzerland.

The S&P 500 (SPX) ended the day down 0.49% with the utilities sector the weakest of the 10 that make up the benchmark index, all of which fell. Utilities, after peaking yesterday, continued their follow through to the downside today, in spite of the continued strength in US Treasuries. Unconfirmed speculation that Ukraine's largest nuclear plant had been shuttered because of a radiation leak contributed to the selling. Tech stocks underperformed as the Nasdaq-100 (NDX) fell by 0.61%.

The December Conference Board consumer confidence index rose to 92.6, slightly below the 93.9 that had been expected. Last month's index reading was revised up to 91.0 from 88.7. The current month's jump was influenced by consumers' feelings on the current economic situation. Home prices according to the S&P/Case Shiller indices saw an increase of 0.76% from the prior month (versus 0.4% expected) and gains 4.5% from a year ago (versus 4.4% expected). Homebuilder stocks outperformed the major indices today, finishing slightly positive.

Tomorrow's Financial Outlook

The first high frequency economic data for the month of December is due out tomorrow morning - the Chicago regional manufacturing index. The index is expected to fall very slightly to 60.0 from 60.8 in the month prior, still indicating very robust strength. Also scheduled to be released are weekly jobless claims and November pending home sales. Bond markets will close at 2pm ET for the New Years holiday although equity and futures markets will remain open for normal trading hours.

The only piece of economic data scheduled for overnight is the final China HSBC manufacturing PMI for December. No change is expected from the preliminary report of 49.5.

There will be no earnings reports tomorrow or on Friday.

Twitter: @Minyanville

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.
No positions in stocks mentioned.

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.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE