Equities Remain Wobbly on this Quiet Monday

June 13, 2011

Swiss markets closed and Germany partly so for Whit Monday.  Australian markets shut for Queen’s Birthday holiday.

Share prices have dropped 1.1% in The Philippines, 1.0% in Indonesia, 1.4% in Taiwan, 0.7% in Japan and Malaysia, 0.6% in Singapore, 0.5% in Thailand, and 0.4% in China and New Zealand.  The Dax is off 0.2%, while the British Ftse is up 0.2%.

The dollar has advanced 0.8% relative to the kiwi but is 0.6% weaker against the Swissy.  The dollar slipped 0.3% against sterling and 0.2% relative to the Australian dollar.  It has firmed 0.1% against the yuan and yen but dipped 0.1% versus the euro and Canadian dollar.

Ten-year sovereign debt yields are unchanged in Japan and Britain.

Among commodities, oil, copper and gold prices have eased by 1.1%, 0.6%, and 0.2%.

Concerns about Chinese growth were reinforced by weaker-than-anticipated bank lending of CNY 552 billion in May after CNY 740 billion in April and CNY 679 billion in March.  Lending slowed to an on-year 17.1% increase.  M2 was 15.1% greater than a year earlier, its smallest on-year advance in 2-1/2 years.  M1 growth of 12.1% was also weaker than expected.

Core Japanese private domestic machinery orders fell 3.3% in April and by 0.2% from a year earlier.  Analysts had predicted a 2.3% monthly increase.  Orders were 2.1% below their average 1Q level.  Public sector and foreign orders recorded monthly declines in April of 1.2% and 2.1%.   Officials said that machinery orders are picking up but show some weak spots.

Between 1Q10 and 1Q11, Hong Kong producer prices and industrial production advanced by 8.2% and 3.5% compared to gains in the year to 4Q10 of 7.6% and 5.7%.

Despite narrowing over 20% in April, Turkey’s current account deficit in January – April of $29.6 billion was over twice as large as the shortfall of $13.9 billion in the first third of 2010.

Industrial production in Italy grew 1.0% in April, much more rapidly than anticipated, and was 3.7% higher than a year earlier.

The Bank of Japan Policy Board began a two-day interest rate meeting that is not expected to change policy.  No U.S. data releases are scheduled today.  The Fed’s Lacker speaks publicly.  Mexican industrial production will be released.  Tuesday sees a substantially more active session from a data release standpoint including several Chinese reports such as the CPI, PPI, industrial production, retail sales and fixed asset investment.

Copyright Larry Greenberg 2011.  All rights reserved.  No secondary distribution without express permission.

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