August 07, 2010

Market Wrap: for the week ending August 6, 2010

• US Dollar traded near a 15-year low versus the Yen, reaching a low of 85.00 on Friday (Reuters)
• US 2-year Treasury yields fall below 0.5% for the first time on record (Bloomberg)
• US jobs declined by 131,000 in July, and the unemployment rate was unchanged at 9.5 (BLS)
• Berkshire Hathaway's profit fell 40% on derivatives losses (FT)
• Industrial producer prices up by 0.3% in Euro area (Eurostat)
• 10-year government bond yields in Japan fell below 1% for the first time in seven years (FT)
• The European Central Bank held interest rates at 1% as expected (Reuters)
• Australia posted a trade surplus of A$3.54 billion in June (Australian Bureau of Statistics)
• Average rates for fixed 30-year mortgages fall to 4.49% in the US, lowest level on record (AP)
• US personal income in June 2010 increased less than 0.1% from May 2010.  (ESA)
• Australia's central bank kept interest rates steady at 4.5% (WSJ)

Weekly Market Barometers    
Stock-2010-0806   FX-2010-0806

Chart Of The Week
Employment numbers in the US have been disappointing with payroll jobs declining worse than expected.  As the Bureau of Labor Statistics reports:

Total nonfarm payroll employment declined by 131,000 in July, and the unemployment rate was unchanged at 9.5 percent, the U.S. Bureau of Labor Statistics reported today. Federal government employment fell, as 143,000 temporary workers hired for the decennial census completed their work. Private-sector payroll employment edged up by 71,000.

Slightly more concerning is the persistently high number of  long-term unemployed - those who have been jobless for more than 6 months).  That number remains at 6.6 million and is now an alarming 44.9%  of all unemployed persons.  The only slightly encouraging sign is that the overall hiring picture, subtracting the numbers of ex-Census hiring, has been improving slightly.


Good luck and good investing!

Neither the information nor any opinion contained in this communication constitutes a solicitation or offer by us to buy or to sell any securities, futures, options or other financial instruments or to provide any investment advice or service. Each decision by you to do any investment transactions and each decision whether a particular investment is appropriate or proper for you is an independent decision to be taken by you. In no event should the content of this communication be construed as an express or an implied promise, guarantee or implication by or from us that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Please note that there is no requirement and no commitment to make any payments to FX Investment Strategies LLC in order to access our published information be it via email or via website publication. All information is publicly available without any required monetary consideration.  Any payments or donations made by you are deemed to be voluntary and cannot be considered as payments for investment advice given to you.

No comments: