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31 May 2012 at 11 : 59 AM
PIMCO: Wall Street Food Chain
by William H. Gross • Soaring debt/GDP ratios in previously sacrosanct AAA countries have made low cost funding increasingly a function of central banks as opposed to private market investors. • Both the lower quality and lower yields of such previously sacrosanct debt represent a potential breaking point in our now 40-year-old global monetary system. [...]
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31 May 2012 at 11 : 30 AM
Dollar Slams Commodities: ‘Total Blowout’ Coming?
31-May (CNBC) — A rising U.S. dollar is exerting major pressure on commodity prices and in turn could be setting up a prime buying opportunity in grains, energy and—yes—even gold. Market pros expect the near-term direction for oil, metals and other items in the space to be downward as investors flock to the safety of [...]
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31 May 2012 at 09 : 08 AM
Morning Snapshot
31-May (USAGOLD) — Gold has been rather choppy this morning, amid some generally grim US economic news. Q1 GDP was revised down to 1.9%, from 2.2% previously. You may also recall that expectations for the first print last month were at 2.5%. Initial jobless claims for last week came in higher than expected and Chicago [...]
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31 May 2012 at 08 : 50 AM
US Chicago PMI plunged to 52.7 in May, well below market expectations of 57.0, vs 56.2 in Apr.
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31 May 2012 at 06 : 38 AM
US initial jobless claims +13k to 383k for the week ended 26-May, above expectations of 369k, vs upward revised 373k in the previous week.
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31 May 2012 at 06 : 20 AM
US Q1 GDP (2nd report) revised down to 1.9%, in-line with expectations, vs 2.2% initial print.
You may recall that expectations on the first report were 2.5% last month. Share
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31 May 2012 at 06 : 54 AM
US ADP employment survey +133k in May, below market expectations of +140k, vs negative revised 113k in Apr (from 119k).
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31 May 2012 at 06 : 26 AM
Gold lower at 1560.00 (-4.60). Silver 27.88 (-0.035). Dollar easier. Euro slightly better. Stocks called higher. Treasurys mixed.
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30 May 2012 at 09 : 19 AM
Ten-Year Treasury Yield Hits Record Low
30-May (The Wall Street Journal) — The benchmark 10-year U.S. Treasury yield sank to an all-time low of 1.659% as fears about the euro-zone debt crisis intensified. The latest anxieties center around Spain’s ability to support its banking system, piling on top of recent worries about Greece’s future in the euro-zone bloc. This prompted global [...]
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30 May 2012 at 09 : 11 AM
Operation Twist: New York Fed purchases $4.740 billion in Treasury coupons.
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30 May 2012 at 09 : 27 AM
Morning Snapshot
30-May (USAGOLD) — Gold is back under pressure as the euro retreated below 1.2400, reaching levels not seen since late-June of 2010. A weak Italian auction and persistent worries about the Spanish banking system and the upcoming Greek elections are weighing on the single currency. Additionally, eurozone economic confidence for May came in at the [...]
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30 May 2012 at 08 : 09 AM
US NAR pending home sales -5.5% to 95.5 in Apr, below market expectations, vs negative revised 101.1 in Mar.
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30 May 2012 at 07 : 08 AM
EU urges direct bank aid in boost for Spain
30-May (Reuters) — The European Commission advocated direct aid from a euro zone rescue fund to recapitalize distressed banks in a move that could eventually help Spain, the latest front in Europe’s debt wars, overcome a worsening banking crisis. Spanish government borrowing costs earlier lurched higher and the Madrid stock market hit a nine-year low [...]
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30 May 2012 at 06 : 37 AM
Gold lower at 1548.44 (-4.48). Silver 27.653 (-0.105). Dollar higher. Euro slides. Stocks called lower. Treasurys higher.
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29 May 2012 at 14 : 30 PM
Europe’s debtors must pawn their gold for Eurobond Redemption
by Ambrose Evans-Pritchard 29-May (The Telegraph) — Southern Europe’s debtor states must pledge their gold reserves and national treasure as collateral under a €2.3 trillion stabilisation plan gaining momentum in Germany. The German scheme — known as the European Redemption Pact — offers a form of “Eurobonds Lite” that can be squared with the German [...]
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29 May 2012 at 12 : 33 PM
The Daily Market Report
Gold Retreats in Sympathy with Euro as Dollar Rises 29-May (USAGOLD) — Gold held fairly steady throughout Monday’s US holiday, but came under renewed pressure mid-morning on Tuesday after the euro fell convincingly below 1.2500. This led to a stronger dollar and weaker gold. Spain is presently vying with Greece for the front-burner of the [...]
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29 May 2012 at 10 : 27 AM
The big new thing in gold – capital adequacy ratios
29-May (Sharps Pixley via MineWeb) — Banking capital adequacy ratios, once the domain of banking specialists are set to become centre stage for the gold market as well as the wider economy. In response to the global banking crisis the rules are to be tightened in terms of the assets that banks must hold and [...]
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29 May 2012 at 10 : 11 AM
Big Shift in ECB Balance Sheet a Sign of Banking Stress?
29-May (CNBC) — Tens of billions of funding support for European banks appears to have shifted to the emergency lending assistance program of the European Central Bank from the long-term refinancing operations, an indication that some European banks may be in dire financial straits. The weekly financial statement of the ECB showed a 21.3 billion [...]
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29 May 2012 at 09 : 32 AM
Operation Twist: New York Fed sells $8.640 billion in Treasury coupons.
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29 May 2012 at 08 : 57 AM
Greek Euro Exit Aftershocks Risk Reaching China
29-May (Bloomberg) — Greece, responsible for 0.4 percent of the world economy, now poses a threat to international prosperity as investors raise bets its days using the euro are numbered. A Greek departure from the currency would inflict “collateral damage,” says Pacific Investment Management Co.’s Richard Clarida, a view echoed by economists from Bank of [...]
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29 May 2012 at 08 : 50 AM
Dallas Fed Index fell to -5.1 in May, vs -3.4 in Apr.
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29 May 2012 at 08 : 40 AM
US consumer confidence plunged to 64.9 in May, well below below market expectations of 70.0, vs negative revised 68.7 in Apr.
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29 May 2012 at 07 : 00 AM
Spain under pressure; Bunds hit highs on bank plan
29-May (Reuters) — German Bund futures held within sight of record highs on Tuesday as concerns over the cost of shoring up the Spanish banking system kept safe-haven assets in strong demand. Bunds paused for breath after rallying on Monday as Spanish debt came under heavy pressure with the 10-year yield spread between the two [...]
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29 May 2012 at 07 : 09 AM
US S&P Case-Shiller home price index for 20-cities UNCH in Mar (nsa) after negative revision for Feb, below expectations of +0.2%.
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29 May 2012 at 06 : 39 AM
Gold steady at 1575.60 (+0.53). Silver 28.31 (-0.086). Dollar firm. Euro weak. Stocks called higher. Treasurys steady to higher.
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25 May 2012 at 15 : 09 PM
The euro’s parachute drop has no end in sight
25-May (CNNMoney) — So much for the euro currency holding up well versus the dollar. The euro has plunged 5% in the past month. That’s like a 50% move for a stock. Sleepy currencies don’t often move that sharply in such quick fashion. It wasn’t that long ago that the euro was hanging in around [...]
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25 May 2012 at 12 : 49 PM
Dallara Says Greek Euro Exit May Exceeed 1 Trillion Euros
25-May (Bloomberg) — The cost of Greece exiting the euro would be unmanageable and probably exceed the 1 trillion euros ($1.25 trillion) previously estimated by the Institute of International Finance, the group’s managing director said. The Washington-based IIF’s projection from earlier this year is “a bit dated now” and “probably on the low side,” Charles [...]
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25 May 2012 at 12 : 20 PM
The Daily Market Report
Europe and Paper 25-May (USAGOLD) — The euro fell to new 22-month lows on Friday below 1.2500 as speculation of a possible Greek exit from the EMU persists. Weakness in the single currency is helping to keep the dollar underpinned, which is keeping gold narrowly confined at the low end its 5-month range. However, the [...]
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25 May 2012 at 10 : 44 AM
Merkel May Be Persuaded on Euro Debt-Sharing Compromise
25-May (Bloomberg) — Chancellor Angela Merkel left the door open to a compromise on debt sharing in the euro area as Italian Prime Minister Mario Monti said he can help bring Germany around to acting in Europe’s “common good.” Merkel’s veto on allowing Germany to underwrite joint debt issuance in the 17-nation euro region is [...]
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25 May 2012 at 08 : 49 AM
University of Michigan sentiment (final) revised upward to 79.3 in May from 77.8 initially, vs 76.4 in Apr.
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