Chillin' out till it needs to be funded
After a hot morning against the Won (KRW), the strength in the SGD and the undervaluation report in the Yuan as helped by a stronger open of the Euro to keep the Dollar down for the rest of the day. In India it rose to near its all time intra day high before receding from 56.7 in the expiring series . It might finally help the United States too as the run for US treasuries broke cut off yields and demand benchmarks in yesterdaays 52 week and 10 yyear auctions leadin g it to create much more problems for domestic demand though inflation is under control as hiring remains weak . Home sale s dat will lead the markets higher after the open as the Dow closed below 10,700 after yesterday mid-day Bond Auctions showed exceptional US demand
The MBA purchase report again showed up declining purchases and increasing refinancing and Oil (brent) declined to nearly $102 before climbing back up in the morning trade. Commodities are hot for a run but in most Asian currencies there price increase does not weaken the Dollar much taking away the edge they might have from depreciation in exports and in Domestic demand
A profit warning from Deutsche Bank is not so worrying to us as they still report a EUR 700 M in a bad quarter, with the Euro rumored to be whacked out of existence B3T1C (Basel 3 Tier I common is already shaken down to 7.1% and deleveraging will remain the flavour of the idea bulked up by Postbank branches
After buying EDF , a public utility supplying power in France and UK for over GBP 4.5 B ( $7.2B) in 2010, Li Ka shing
and Cheung Kong Holdings are back on a buying spree for Wave and West Utilities, a simple purchase for just 600 odd pounds adding up to a $1B EDF and Mckann Eriksson are major sponsors of the 2012 Summer Olympics across the pond
A supply of 6.2 months in existing Home Sales may also be bolstered by a healthy 4.7 months only supply of New Home Sales after a resurgent may groth of 7.5% is expected to be repeated in today’s 10 AM report.