Posts from Monday May 6 2013

The Closer


FT markets round-up: “Stocks on Wall Street resumed gains and traded at fresh record highs after a lacklustre session in Europe in thin holiday markets. The S&P 500 rose 0.2 per cent to 1,617.50, after a record-setting week, which saw it breach the 1,600 level and close at all-time highs, supported by an upbeat US jobs report on Friday. But moves in Europe were less impressive. The FTSE Eurofirst 300 slipped 0.1 per cent as an index of eurozone services showed contraction for the 15th consecutive month. The PMI data for both manufacturing and services in the eurozone were not as bad as traders had expected, however, and pared losses for equities. The euro fell 0.3 per cent against the dollar after Mario Draghi, European Central Bank president, said the bank was “ready to act again” if economic indicators continued to disappoint.” (Financial TimesRead more

An update on Slovenia

The FT’s Peter Spiegel has the latest take on Slovenia this afternoon, highlighting the fractiousness of the country’s internal politics:

According to two senior eurozone officials, concerns have focused on “non-cooperation” between Slovenia’s finance ministry and central bank, which is responsible for supervising the financial sector. One of the officials said the central bank was being “obstructionist” towards the new government’s clean-up efforts. … Read more

Spanish yields and the ECB’s austerity defence

The chart above shows the decline in Spanish bond yields “occurring at a time that Spain has announced that it had not hit its deficit targets and would not hit next year’s,” as David Watts of CreditSights points out. Read more

China’s great rebalancing, or: where does the investment go?

The latest piece of Chinese data to hit those post-Q1 GDP nerves is today’s HSBC/Markit services PMI.

It gave a April reading of 51.1, down sharply from 54.3 in March, and was the lowest since August 2011: Read more

Further reading

Elsewhere on Monday,

– Is the stock market a zero sum game?

– ‘We base our costumes on the price of the Nikkei average of the day.’

– Krugman and Summers going all MMTRead more

The 6am Cut London

Asian markets rise || China services PMI fall sharply || Brussels to clamp down on tax avoidance by individuals and funds || Obama signals support for more US gas exports || Study finds banks benefit from forex flow information || Berkshire Hathaway meeting || Don’t expect austerity shift in Europe Read more