July in Figures
July 30, 2011
Two interrelated themes played out in July, a slowdown of global growth and unfolding U.S. and European fiscal crises. It was a good month for gold, bond prices and the Swiss franc but a poor one for the euro, dollar, and share prices. Gold advanced by more than $125 per ounce to record highs. Oil met resistance at the $100 per barrel threshold and closed the month just 0.6% higher on balance at $95.70. Short-term interest rates were barely changed in July except for euribor, which ground gradually higher on the belief that the darkening economic backdrop would not deter ECB officials from raising key interest rates about once each calendar quarter. End-July found U.S., British, German, and Canadian sovereign debt yields at 2-something percent versus more than 3.0% at midyear. The Swiss government bond yield closed the month below 1.50%.
The euro ranged widely between $1.4577 and $1.3835 during July and, although closing with a net loss of 0.8%, wound up much closer to its monthly high than its monthly low. The dollar plumbed to a record low against the Swiss franc and closed not far from its all-time low against the yen. Significant declines in equities were compressed into the final week of the month as the August 2 U.S. debt ceiling deadline drew nearer and as fresh doubts intensified about the July 22 EU bailout of Greece.
| 10-Yr Yield | 06/30/11 | 07/29/11 | Chg vs End-Jun |
| U.S. | 3.16% | 2.79% | -37 Basis Points |
| Germany | 3.02% | 2.54% | -48 |
| Japan | 1.14% | 1.08% | -6 |
| U.K. | 3.38% | 2.86% | -52 |
| Canada | 3.11% | 2.78% | -35 |
| Switzerland | 1.71% | 1.42% | -29 |
| 3-month euros | Chg vs End-Jun | ||
| U.S. | 0.25% | 0.26% | +1 Basis Point |
| Euroland | 1.55% | 1.66% | +11 |
| Japan | 0.20% | 0.20% | 0 |
| U.K. | 0.83% | 0.83% | 0 |
| Canada | 1.17% | 1.18% | +1 |
| Swiss | 0.18% | 0.18% | 0 |
| FX | Pct Chg in USD | ||
| EUR/USD | 1.4503 | 1.4387 | +0.8% |
| USD/JPY | 80.56 | 76.95 | -4.5% |
| USD/CHF | 0.8410 | 0.7865 | -6.5% |
| GBP/USD | 1.6044 | 1.6409 | -2.2% |
| AUD/USD | 1.0720 | 1.0999 | -2.5% |
| NZD/USD | 0.8285 | 0.8792 | -5.8% |
| USD/CAD | 0.9643 | 0.9576 | -0.7% |
| USD/CNY | 6.4650 | 6.4390 | -0.4% |
| Equities | Pct Change | ||
| S&P 500 | 1321 | 1292 | -2.2% |
| Nasdaq | 2774 | 2756 | -0.6% |
| Djia | 12414 | 12143 | -2.2% |
| Dax | 7376 | 7159 | -2.9% |
| Nikkei | 9816 | 9833 | +0.2% |
| Ftse | 5946 | 5815 | -2.2% |
| Canada TSE | 13301 | 12946 | -2.7% |
| Swiss SMI | 6187 | 5785 | -6.5% |
| Commodities | Pct Change | ||
| Oil, $ per brl | 95.12 | 95.70 | +0.6% |
| Gold, $ per oz | 1500.80 | 1628.30 | +8.5% |
Copyright 2011, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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