October in Figures
October 31, 2010
The aim of quantitative easing is to depress long-term interest rates, yet sovereign yields mostly rose in October. Three-month euribor rates advanced 14% to pull virtually even with the ECB refinancing rate. Other short-term rates were very steady. In a pattern that has been seen often since the beginning of the financial crisis, stocks (up) and the dollar (down) moved inversely. Gold continued to climb, inspiring talk that it has become the newest financial market bubble. The main impetus in October for rising gold prices, which closed the month above $1350 per ounce versus $1096.95 at end-2009, was the weak dollar, which got as low during the month as 1.4157 per euro, JPY 80.42, 1.6104 per pound and 1.0003 per Australian dollar. Oil prices, which have fluctuated all year in the 70s and 80s rose 1.8% to $81.43 per barrel.
| 10-Yr Yield | 09/30/10 | 10/29/10 | Chg vs End-Sept |
| U.S. | 2.51% | 2.60% | +9 Basis Points |
| Germany | 2.28% | 2.52% | +24 |
| Japan | 0.94% | 0.94% | 0 |
| U.K. | 2.95% | 3.08% | +13 |
| Canada | 2.74% | 2.80% | +6 |
| Switzerland | 1.37% | 1.54% | +17 |
| 3-month euros | |||
| U.S. | 0.29% | 0.29% | 0 Basis Points |
| Euroland | 0.85% | 0.99% | +14 |
| Japan | 0.22% | 0.20% | -2 |
| U.K. | 0.73% | 0.74% | +1 |
| Canada | 1.25% | 1.22% | -3 |
| Swiss | 0.18% | 0.17% | -1 |
| FX | Pct Chg in USD | ||
| EUR/USD | 1.3637 | 1.3926 | -2.1% |
| USD/JPY | 83.51 | 80.44 | -3.7% |
| USD/CHF | 0.9824 | 0.9834 | +0.1% |
| GBP/USD | 1.5716 | 1.6023 | -1.9% |
| AUD/USD | 0.9668 | 0.9816 | -1.5% |
| NZD/USD | 0.7339 | 0.7634 | -3.9% |
| USD/CAD | 1.0290 | 1.0207 | -0.8% |
| USD/CNY | 6.6940 | 6.6718 | -0.3% |
| Equities | Pct Change | ||
| S&P 500 | 1141 | 1183 | +3.7% |
| Nasdaq | 2369 | 2507 | +5.8% |
| Djia | 10788 | 11118 | +3.1% |
| Dax | 6229 | 6601 | +4.1% |
| Nikkei | 9369 | 9202 | -1.8% |
| Ftse | 5549 | 5675 | +2.3% |
| Canada TSE | 12369 | 12676 | +2.5% |
| Swiss SMI | 6296 | 6472 | +2.8% |
| Commodities | Pct Change | ||
| Oil, $ per brl | 79.97 | 81.43 | +1.8% |
| Gold, $ per oz | 1308.35 | 1359.40 | +3.9% |
Copyright Larry Greenberg 2010. All rights reserved. No secondary distribution without express permission.
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