A day of No-QE capitulation selling? Silver fell 6.7 per cent and gold for June delivery fell 3.5 per cent, moving on receding prospects of stimulus from the Federal Reserve (Wall Street Journal). The S&P 500 fell one per cent to 1,398 (Bloomberg).
Spain had a weak bond auction. A sale of five-year bonds fetched a yield of 4.3 per cent, up from 3.3 per cent in an auction a month ago. Spain also failed to sell the maximum amount intended (Bloomberg). But the country has already finished more than half of its expected issuance this year thanks to LTRO-driven purchases by its domestic banks (Wall Street Journal).
US crude inventories saw their biggest two-week build since 2001. Nymex crude for May delivery fell more than two per cent after EIA data showed that 16.1m barrels were added in the last fortnight, including 9.01m in the last week (Reuters). Global physical oil markets are also beginning to show fewer signs of tightness. The price difference between Brent and Urals crude is at its lowest in 11 months, as Saudi, Russian, Iraqi Libyan grades boost supply to the market (Financial Times).
Yahoo will shed 14 per cent of its workforce as it strives to cut costs. Some 2,000 people ‘will be notified of job elimination or phased transition’ with the company aiming for $375m of savings annually (Yahoo statement). The long-expected job losses follow a two-month review by the new CEO Scott Thompson (Financial Times). Yahoo will focus on core media to achieve growth, Thompson told employees (Bloomberg).
Initial jobless claims… there’s a consensus of another fall to 355,000 as the indicator stays near April 2008 levels.
Further further reading
– Further… Fuld and Schwartz meeting!?
– James Hamilton has a question for POTUS on Iranian oil.
– Felix praises HFT. Really.
– Canada’s latest push for a digital currency.
– Money Game says goodbye, maybe, rally liquidistas.