sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: October 18, 2012 - Huge rebound
Collinson FX Market Commentary: October 18, 2012 - Huge rebound

'Image of the Day The recovery of US 17 - Oracle Team US - Haulout Pier 80'    Erik Simonson © www.pressure-drop.us

Collinson FX market Commentary: October 18, 2012

Click here to find out how to get CollinsonFX's free iPhone app

The huge rebound in global equity markets continued with a consolidation supported by more good news on the economic front. In the US, Housing Starts jumped by 15% and Building Permits by 11.6% signalling the long awaited precursor to the economic recovery may finally be upon us!? The renewed confidence on the economic front has raised the cause of risk appetite sparking a rally in the currencies. The EUR has broken restraints and leapt to 1.3125 and the GBP to 1.6150. The resurgence is based on a negative as much of the rallies have been.

The poor performance of global economies, mired in debt, have bared witness to the rise of the power of Central Banks. Politicians have failed their constituents by not acting to curb excessive spending resulting in massive deficits. The deficits have resulted in crippling debt which has become the millstone. The overwhelming debt level consumes income previously destined for expenditure for the greater good. Politicians continue to spend more than revenue provides accentuating the short-term nature of the Political cycle.

The failure of leaders to act within their means has resulted in Central Bankers intervening, acting Monetarily to counter fiscal ineptitude. The expansion of liquidity has eroded citizens wealth by destroying the currency and reducing asset values. This has to be, as western countries live beyond their means. The commodity currencies extended recent gains with renewed risk appetite. The AUD has recovered to 1.0375 and the KIWI to 0.8215 fueled by inflated interest rate yields. Irresponsible political leadership has resulted in Central Bank flagrancy which now calls for RBA and RBNZ conformation. Inflated currencies have crippled trade exposed sectors advancing the cause of recalcitrant nations. European developments will continue to undermine markets and be aware of the 'October Factor'.

Image of the Day Emirates Team New Zealand. Day 12 of testing for the team’s first AC72. -  Chris Cameron-ETNZ   Click Here to view large photo

Collinson FX market Commentary: October 17, 2012

Markets continued to rally strongly eliminating last weeks losses with a surge in risk appetite. The conception was sparked in Europe with word of a Spanish request for a bailout while Portuguese riot in the streets against austerity measures required from their own bailout!

The German ZEW Economic Sentiment reported an improvement but still sits at minus 11.5. Corporate earnings continued to drive equities north lead by the financials. Citibank rallied after CEO, Pandit, resigned much to the relief of many.

CPI was released in Europe, US and NZ and was benign despite huge rises in cost of living because of the lack in growth. Industrial and Manufacturing Production both increased in the US contradicting previous data and thus added impetus to the rally in equities.

Commodities were mixed despite the strong rally and the AUD drifted to trade 1.0265. NZD was hit with surprising news on inflation which fell to 0.8%. The lack of growth allows speculation that RBNZ will cut rates thus reducing pressures on the currency which fell to 0.8130.

Esimit Europa 2 winner of 44 Barcolana race
Photo: © Carlo Borlenghi  Carlo Borlenghi/Luca Butto  

Collinson FX market Commentary: October 16, 2012

The markets opened the week stronger putting a week of losses behind and looking at strong economic data and corporate earnings. Chinese CPI slowed as did the PPI which lowered input costs and eased monetary pressures. Exports from China doubled beating expectations and weakening recent trade data.

In Europe, the German Finance Minister refuted a Greek default and espoused the harm of an exit on the EU family. In the US, Retail Sales leapt 1.1% beating expectations and giving risk appetite a boost. This was tempered by the Empire State Manufacturing survey which contracted for the third straight month. The EUR held steady at 1.2940 and the GBP 1.6070.

The weak Manufacturing data hit commodities falling uniformly. The immediate impact on the associated currencies was tempered by the strong data from China. The AUD held 1.0250 and the KIWI 0.8180 with rising Home Loans and Car Sales reflecting a recovery in these major sectors after RBA easing policies beginning to impact. Corporate earnings have been strong, lead by Financials with Citi beating expectations with a free pass from Bond Yield returns.

Look for developments from Europe and economic data and corporate earnings to drive market sentiment in the US. Election fever is rising in the US and the gains by Romney are a positive for markets with Obama ineptitude well and truely exposed.

The second debate tonight may well cement the rise of conservatives with the 'Great Orator' unable to combat mortal questioning!

For more on Collinson FX and market information see:
www.collinsonfx.com and www.collinsonwealthmanagement.com

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |


Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.


by Collinson FX

  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=102989

1:59 PM Thu 18 Oct 2012GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.

Click for further information on
2011 Collinson & Co

Related News Stories:

17 Oct 2012  Collinson FX Market Commentary: October 17, 2012 - Markets rally
16 Oct 2012  Collinson FX Market Commentary: October 16, 2012 - Markets open strong
13 Oct 2012  Collinson FX Market Commentary: October 12, 2012 - Markets & Kiwi flat
11 Oct 2012  Collinson FX Market Commentary: October 11, 2012 - Alcoa moves ahead
10 Oct 2012  Collinson FX Market Commentary: October 10, 2012 - IMF rings bell
09 Oct 2012  Collinson FX Market Commentary: October 9, 2012 - US markets light
07 Oct 2012  Collinson FX Market Commentary: October 6, 2012 - US Boost
05 Oct 2012  Collinson FX Market Commentary: October 5, 2012 - Bond-buying
04 Oct 2012  Collinson FX Market Commentary: October 4, 2012 - China flat
03 Oct 2012  Collinson FX Market Commentary: October 3, 2012 - Oz Bank chops rate
MORE STORIES ...




News - USA and the World













470 Men and Women Worlds - Champs take over leaderboard by 470 International Association Class,






































ISAF Sailing World Championships - Watch medal races live here by Dan Ibsen, Sail-World Europe & UK editor,








470 Men and Women Worlds - Vadlau and Ogar into pole position by 470 International Association Class,




ISAF Sailing Worlds, Santander - Strong competition for RS:X fleets by Olga Maslivets, International RS:X Class Assoc.,




ISAF Sailing Worlds, Santander - Buckingham into Laser Medal Race
U.S. Multihull Championship - Hobie Alter Trophy to be decided
ISAF Sailing Worlds - The kind of form most sailors only dream about
Royal Cup Marina Ibiza - Quantum Racing ahead of target
ISAF Worlds Santander - 19 Rio 2016 Laser Radial spots awarded
Santander 2014 ISAF Worlds - 21 broadcasters to take live coverage
Rolex Swan Cup - Looking forward to the next 30 years
America’s Cup: The Future is foiling – AC45s to be modified
Volvo Ocean Race: Win a stopover trip by designing an ECsix T-Shirt
Red Bull 49erFX: On the eve of the Worlds in Santander
America's Cup: Ben Ainslie Racing launches partnership with Yamaha
2014 Chicago Match Cup - Starts tomorrow
Rio 2016 Daylight the issue for Olympic sailing regatta
ISAF Sailing World Championships - USA 470's and Lasers battle at top
ISAF Sailing World Championships - Santander - Day 5 video highlights
ISAF Sailing World Championships - Santander images by Jesús Renedo
PWA Cold Hawaii World Cup - No action on day 2
470 Men and Women Worlds - Game on for Olympic Qualification
ISAF Sailing World Championships: Finns off to slow start in Santander
ISAF Sailing World Championships - Seesaw Day 5 in Santander + Video
ISAF Sailing World Championships - 470 sailors shine in Santander   
Royal Cup Marina Ibiza - Kiwi Ray Davies returns to TP52 fleet   
Starboard Hatteras Wave Jam - No windsurfing action on day 1   
A complete recap of the most successful Melges 20 World Championship   
Rolex Big Boat Series - Prizegiving images by Chuck Lantz   
ISAF Santander - Upwards path for Austrian women's 470 crew + video   
18ft skiffs: Carnage compilation from the glory days of the Grand Prix   
ISAF Worlds: Video from the British Sailing Team   
Bart's Bash expected to set new records this weekend   
PWA Cold Hawaii World Cup - Marcilio Browne wins Super Session   
470 Men and Women World Championships - Racing abandoned on day 2   
ISAF Sailing World Championships - Day 4 images from Santander   
ISAF Sailing Worlds, Santander: Emerging Nations Program sailors shine   
ISAF Sailing Worlds, Santander - Teasing winds play havoc on day 4   
ISAF Sailing World Championships: Hot conditions in Santander on day 4   
Santander ISAF Sailing World Championships joins Bart’s Bash   
PWA Cold Hawaii World Cup - Grounded fishing boat creates problems   
Marseille One Design - GC32 Armin Strom Sailing Team emerge victorious   
Rolex Big Boat Series 2014 - Ready for another 50 years   
2014 Rolex Big Boat Series - Farr 40 Day 4   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News





Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL NEW US
LocalAds   DE  ES  FR  IT