26th July 2011, Market Update: Debt-ceiling Dithers, Dollar Dumped
Market Update: Debt-ceiling Dithers, Dollar Dumped
Debt Ceiling Distractions
Commentary
Hysteria over the debt ceiling debate remain at elevated levels. Will the US default on its debt? Of course it will not. Will the US default on its obligations towards its own people…? Hmmm possible, but unlikely… will the entire charade result in a downgrade of US debt? Unlikely but possible… should the US debt rating have already been downgraded? Yep!
The GBP, CHF, EUR, JPY, CAD, AUD are all hitting new highs – what’s the reason? The denominator of course! The Dollar is hitting new lows… we’re getting close to that all time low again… perhaps I should not have gone neutral on the Dollar so early, perhaps I should have kept by uber-bear status. Time will tell…
Ford earnings delighted investors, SAP the biggest competitor to Oracle improved its outlook for the second half of the year. Corporate announcements have been pretty good on the whole – if only the macro/political situation would allow stocks to rally…
Chart of the Day
Apple hits 400 for all the right reasons.
Apple Alert! (Source: Bloomberg).
Dollar Index hits 73.5 for all the wrong reasons.
USD Trading Envelope (Source: Bloomberg).
Events
Macro Events:
German CPI – this is key to understanding the ECB’s next move and indeed the penetration of this apathetic growth lull.
Corporate Events:
Results:
Aflac [AFL], Boeing [BA], Citrix [CTXS], ConocoPhilips [COP],Corning[GLW], Dow Chemical [DOW], Nidec [6594],General Dynamics [GD],NipponSteel [5401], Nissan Motor [7201], Northrop Grumman [NOC], Southern Co [SO], Symatec [SYMC], Visa [V]
Dividends:
Bank of NY Mellon [BK], Morgan Stanley [MS], Tyco [TYC]
Reading, Links:
- Lagarde warns on the debt-ceiling:
- Chinaseeks a new global reserve currency:
