Chillin' out till it needs to be funded
Everything’s set for Friday’s Employment Situation Report as ADP payrolls suggest that a new high score around the last three months 220,000 additions and above the 150,000 new workers joining the labor force is well in the works. The Challenger report came t o one of its minimum scores with 37,000 jobs lost and seemingly in telecom, education and a trifle unfortunately industrial goods. Jobless claims of 357k and 261 k revised for the previous week were not too low but keep the new Moving average trend
Eve as EIA inventories reached an all time high yesterday with 9 mln barrels of crude adding to the inventory, running at 82% capacity seems to have metastasised the distillates and gasoline consumption data. BoE report was a well managed show again with no more QE to add or rates to cut from GBP 325 bln and 0.5% respectively
And no China’s not falling apart on Martin Luther King Day/weekend coming up though the nation does engender the emotion and US trade to China and Europe ahas managed to stay up till January 2012. China reported a 8.4% GDP growth for Q1 2012 though official reports are to follow and US Service Sector indices were holding at 56 though Services have started crashing in India which was till now holding the high watermark. india’s March readng for Services PMI checked itself in at 52.3
Interestingly, FT leads with a stroy of the Relative Value Arbitrage in bonds coming back as being the mirrorin gof LTCM story but this is likely the illiquid subprime MBS market which has recovered from 30 to nearly 65 in this quarter the relative value arb funds scoring a high 45% return int he quarter. There’s a lot of mone y in junk debt and at this point in the recovery cycle I would suggest you check out of equities and look/play the corporate /high yield muni markets and stay away from ‘safe’ Treasuries and ‘hopeful’ equities, strictly to keep you money tree green.
Ans just so you know, both Spain and Portugal did fine overnight, starting off where they were and the Euro’s low the $1.32 we left it at a few weeks ago.