sail-world.com
 
 
News Home Video Gallery Photo Gallery
Sail-World.com : Collinson FX Market Commentary: December 20, 2012 - Fiscal Cliff negs
Collinson FX Market Commentary: December 20, 2012 - Fiscal Cliff negs

'The new VX One Design sailing on Auckland harbour'       Click Here to view large photo

Collinson FX market Commentary: December 20, 2012

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

Fiscal Cliff negotiations continued to dominate markets which remain slow with participants preoccupied with seasonal festivities. Low volume confirms the lack of interest in trading with equities taking a spell from the Santa rally and commodities drifting.

Hardened to the arguments of the repercussions resulting from Fiscal Cliff horse trading, indifference has emerged. A deal will be done regarding tax rises as it seems it is just a matter of how much!? Republicans have their tails between there legs and look set to capitulate to the left.

The problem is spending, as outlined by Merkel, and Political failure to address the critical fiscal imbalance will collapse the system. The fiscal incompetence is an indictment of the failure of Political systems in the Western world. Demand for commodities slipped, dragging associated currencies lower with the AUD falling below 1.0500 and the KIWI 0.8365.

In the US, the much vaunted recovery in housing took a dent with Housing Starts plunging 3%, contradicting one of the main premise for economic recovery in the US. Don't bet your house on it!

2008 Flashback Carl Evans and 2012 Olympic Silver medalist Peter Burling (NZL), the youngest crew to ever compete at an Olympics sailing in the first races of 2008 Olympic Regatta. -  Richard Gladwell_©   Click Here to view large photo


Collinson FX market Commentary: December 19, 2012

The 'Santa Rally' continued with positive news from Europe and rising hopes in the Fiscal Cliff negotiations. In Europe, S&P raised the outlook raising Greek debt rating from Junk Bond status, clearly believing in the commitment of EU leaders.

The EUR rallied to 1.3225 and the GBP 1.6250 with the usual positive season sentiments flowing through markets. Most Politicians are off the stage and the lack of presence certainly raises positive market vibes. The sheer lack of faith in Politicians from both the left and right have reinforced the crumbling support of institutions that have built Western nations.

The entitlement society has dragged Western democracies into the toilet with debt overwhelming the viability of nations. In the US, the White House rejected the Boehner offer to raise taxes on those earning over $1 Million and allow Bush taxes to remain. Obama has not offered significant spending cuts that are the root of the crises. Remember these revenues and cuts are multiplied by 10 as they are talking about a ten year budgetary period.

Why not talk in multiple of 100 so the numbers can become even more meaningless and relevant. To put this in perspective....the US Government is more than $1 Trillion p.a.($10 Trillion 10 year) and they are proposing cuts of $100 Billion ($1 Trillion 10 year)! Keep in mind these cuts are not actual cuts but cuts to growth in expenditure already budgeted. This will not even slow the compounding growth of the deficit and debt that will overwhelm the nations finances in the short term.

Meanwhile the Christmas rally continues with the seasonal rally in equities. Commodities failed to respond to the Christmas spirit and remained steady. The AUD held 1.0530 and the KIWI 0.8425 with markets trading very thin volume over the holiday season. This is likely to continue until participants return in the New Year with any deal in the Fiscal Cliff negotiations likely to be marginal.

2012 Olympic Gold Medalist Jo Aleh (NZL) sailing in Race 8, 2008 Womens Laser Radial Championships -  Richard Gladwell_©   Click Here to view large photo


Collinson FX market Commentary: December 18, 2012

The last full trading week before Christmas promises to be light in trading volume with only major Eco-political events having an impact. Today stocks rallied after positive news from the Fiscal Cliff negotiations. Speaker Boehner has offered further considerations in form of a tax rise on those earning $1,000,000 plus.

Obama has not agreed but the continued bi-partisanship from the Republicans may force his hand. His form has offered precedence and has not always been in line with popular demand so expectations must be reserved with Democrats cocky after the recent election. Equities rallied on the developments and the currencies remained attracted to risk. The EUR traded 1.3150 with Merkel commenting on necessary structural reforms that must be addressed.

She spoke of the over generous welfare/entitlement societies that are drowning Western nations in debt. This sacred cow will be heavily resisted by the left but the simple fact of a fall in the number of tax payers does not allow such largesse. In the US, The Empire Manufacturing Survey continued to degenerate falling a further 8.1% but economic data was swamped by political negotiations.

The Santa Rally resumed with no fundamental moves expected this side of the New year apart from Fiscal Cliff developments. The AUD remained steady trading over 1.0500 and the KIWI 0.8400 reflecting the strong appetite for risk in the face of a devastated Big Dollar.

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=104875

10:39 AM Thu 20 Dec 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:

19 Dec 2012  Collinson FX Market Commentary: December 19, 2012 - Santa Rally
15 Dec 2012  Collinson FX Market Commentary: December 16, 2012 - Overhanging cliff
14 Dec 2012  Collinson FX Market Commentary: December 14, 2012 - Reality check
13 Dec 2012  Collinson FX Market Commentary: December 13, 2012 - Confidence surges
12 Dec 2012  Collinson FX Market Commentary: December 12, 2012 - Xmas rally stays
11 Dec 2012  Collinson FX Market Commentary: December 11, 2012 - Market rally
09 Dec 2012  Collinson FX Market Commentary: December 7, 2012 - NZD breaks 83c mark
06 Dec 2012  Collinson FX Market Commentary: December 6, 2012 - No change in NZ
05 Dec 2012  Collinson FX Market Commentary: December 5, 2012 - Equity markets flat
04 Dec 2012  Collinson FX Market Commentary: December 4, 2012 - Good news ex China
MORE STORIES ...




News - USA and the World







HUD Vision: An interview with Afterguard Marine’s Alex Moret by David Schmidt, Sail-World USA Editor, Seattle














America's Cup: Expected de Ridder penalty should be reduced by Richard Gladwell/Sail-World.com/nz, Auckland, NZ


















Congressional Cup - Victory for Taylor Canfield and crew by Rich Roberts (As Amended by ISAF),




2014 Halifax – Saint-Pierre Ocean Race by Patricia Nelder, Nova Scotia














Image Gallery: Stratis SL33 flies on the Waitemata by Richard Gladwell,Sail-world.com/nz,


Audi Melges 20- Sperry Topsider Charleston Race Week - Light final day by International Audi Melges 20 Class Association,








Int 14 World Championships 2015 launch new event website
International Optimist Regatta Clinic and Team Race - Register now!
Congressional Cup: World top rankers finish that way in Long Beach
Sperry Top-Sider Charleston Race Week Day 3 finale
America's Cup: Gino Morrelli outlines the new AC62 design
Doyle Sails New Zealand signs Andrew Brown as One Design Manager
America's Cup: Dean Barker's Blog - A sail with the Duke and Duchess
29er World Youth Sailing Week Easter regatta - Day 1 and 2 overall
C Thomas Clagett Jr Memorial Clinic/Regatta - Entries start to roll in
50th Congressional Cup: See the delayed coverage and media conferences
Clipper Race 10 Day 27: Closing stages - Qingdao to San Francisco
Canfield, Williams, Bruni, Swinton in Congressional Cup final four
Sperry Top-Sider Charleston Race Week - Day 2
Audi Melges 20 Charleston Race Week - Perfect conditions in Charleston
Oyster Regatta Antigua - Full on ocean conditions for day 3
PWA World Tour - A taste of things to come at La Torche + Video
Women's International Match Racing Series kicks off in June
Melges 32 Audi Tron Sailing Series - Action shots by Max Ranchi
Clipper Round the World Yacht Race - Frustrating conditions
Man rescued after falling overboard in Pacific taken to hospital
Sperry Top-Sider Charleston Race Week 2014 - Youth leading Melges 20   
Congressional Cup - Canfield leads toward Congressional Cup sailoffs   
Sperry Top-Sider Charleston Race Week 2014 - Perfection for Day 1   
America's Cup: Coutts claims ISAF Jury on a crusade, backs Kiwi report   
Clipper Round the World Yacht Race - Will light winds hamper progress?   
Les Voiles de St. Barth - Preparing to rock Saint Barthélemy waters   
Clipper Round the World Race - OneDLL and Qingdao now in San Francisco   
America's Cup: Emirates Team NZ up against funding hurdle for year   
Melges 32 Sailing Series Napoli - Day 1 images by Stefano Gattini   
50th Congressional Cup: View the Live racing here   
Melges 32 Sailing Series - Napoli action shots by Max Ranchi   
Volvo Ocean Race - Team Alvimedica launch new boat   
Emirates Team NZ: Royals duke it out on the Waitemata   
2014 Charleston Race Week - Thousands of sailors descend on Charleston   
The Congressional Cup 2014 - Williams hangs on with a classy crowd   
50th Congressional Cup: View the Live racing here   
RORC Transatlantic Race - Notice of Race now available   
Oyster Regatta Antigua - Sunshine and smiles on day 2   
Rolex China Sea Race on the horizon   
What can a boat name tell you about the person behind the helm?   


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.
XL WAS US