Posts from Monday Apr 2 2012

The Closer


The Dow Jones Industrial Average posted its highest close since December 2007. The S&P 500 closed at its highest level since May 2008 (Wall Street Journal). March’s ISM beat forecasts of 53 to post 53.4, helping to boost stocks. The ISM’s employment reading of 56.1 was the highest since last June (Financial Times). Read more

Waiter! There’s a central bank in my CAC

We missed this last week, from the (deep breath) Economic and Financial Committee (EFC) Sub-Committee on EU Sovereign Debt Markets.

Something to read if you’re planning to buy a eurozone sovereign bond after 2012… Read more

MMFs, deposit insurance, and regulation in the age of shadow bank runs

Deposit insurance on non-interest bearing accounts — it was in October 2008 that the FDIC started it, through the Transaction Account Guarantee, or TAG.

Until we looked a bit more closely, we hadn’t guessed that the issue could offer much insight into the complexities of shadow banking regulation. Read more

“D” is for data and that’s good enough for Markit

“Me want data!”

London and New York, NY – Markit, a leading, global financial information services company, today announced the acquisition of Data Explorers, a leading provider of global securities lending data, from mid-market private equity firm Bowmark Capital.

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What’s keeping US gas prices aloft

Courtesy of the Credit Suisse crew, a diagram that tracks how the composition of US retail gas prices has evolved in recent years (click to enlarge):

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A Sino suit, and CDS

1) Sino-Forest gets a “bankruptcy credit event, yes or no” question asked about its CDS for the second time:

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Eurozone manufacturing looking glum

Eurozone manufacturing PMIs were out Monday morning making a sad frowny face, with the earlier flash estimate of 47.7 confirmed for March. The composite output index, that also contains services activity, had a flash estimate of 48.7. Confirmation or revision of the flash composite, and services, will be out on Wednesday.

In the meantime though, here’s Markit’s chief economist Chris Williamson to give a bit of colour on the state of the manufacturing sector (emphasis ours): Read more

Markets Live transcript 2 Apr 2012

Live markets commentary from 

The Lunch Wrap

Good morning, New York


Why you shouldn’t get *too* excited about that China PMI

That 53.1 number from the official March manufacturing PMIs isn’t all that, when you consider the official numbers have a big seasonal skew.

To illustrate how big that skew is, here’s a chart that Markit Economics’ Alex Hamilton sent to us a few months ago [we just got a newer one] when we were asking him about divergences between the official and the HSBC/Markit Economics PMIs. It shows the official PMIs. Focus on how well March usually fares: Read more

Further reading

Elsewhere on Monday,

– The belief in trends may cause stock prices to be chaotic rather than random. Read more

Overnight markets: Up

Asian stocks opened the second quarter on a positive note as risk appetite returned after China’s strong manufacturing data eased concerns about the global economic outlook, says the FT.

The MSCI Asia Pacific index inched up 0.3 per cent with Japan’s Nikkei 225 Stock Average and Australia’s S&P/ASX 200 index each rising 0.9 per cent, while South Korea’s Kospi Composite index gained 0.5 per cent. Read more

The 6am Cut London

European finance ministers focus on getting more support from the IMF. (Wall Street Journal) This comes after the ministers agreed only a weak boost to the bailout fund, by setting aside the €200bn currently committed to Greek, Irish and Portuguese bailouts from the new €500bn ESM. (Financial Times)

UK battles EU to keep right to set higher bank capital requirements. The UK has won support from the European Systemic Risk Board, but the EU says the UK system would damage growth and the single market. (Financial TimesRead more