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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