Sail-World.com : Collinson FX Market Commentary: December 30, 2012 - Fiscal Fiasco
Collinson FX Market Commentary: December 30, 2012 - Fiscal Fiasco
|
|
|
'Image of the Day C2006 Zephyr - Barloworld Mercedes-Benze Couta Boat Nationals'
© Alex McKinnon
|
Collinson FX market Commentary: December 30, 2012
Click here to find out how to get CollinsonFX's free iPhone app
The New Year beckons and expectations must be ordinary with the parlous state of European and US Markets. Friday saw another large and late sell-off in equities with the continuing fiasco that are the Fiscal Cliff negotiations. The Cliff is due to hit at the start of the year and looks likely to be crossed. Obama dramatically returned from his Hawaiin vacation to solve the crises that has been in the making for 2 years.
This was all for show as his offer was his original position giving nothing. He expects to tumble over the cliff and then introduce tax cuts for the majority thus blaming the Republicans and labelling himself as the saviour and a tax cut President. We will see! The Markets reflected this with five days of continuous losses reflecting the disaster about to befall the US and Global economy.
This should ensure recession returns to the US and extends the EU crises and recession/depression. It will not be until the second half of the year that we may see some weak recovery.
Commodities drifted and dragged the currencies associated lower. The AUD fell to 1.0370 and the KIWI dipped below 0.8200. Fiscal Cliff will drive markets to kick off the New Year and economic data will take a back seat. This week will have all important Non-Farm Payrolls but will fundamentally overwhelmed by political developments.
Collinson FX market Commentary: December 29, 2012
Obama returns to Washington to solve the latest budgetary crises besetting the nation. That the crises was created by the Democrats seems to matter little, as blame is heaped upon the Congressional Republicans. Obama leads the media and consequently public opinion but that is not how the impasse will be solved. The heart of the crises is the overwhelming Budget deficit which has pushed US debt to over 100% of GDP.
The Government is spending more than $1T a year more than they collect. This adds to the crippling debt that has now broken $16 Trillion. Keynsian arguments have long since been exhausted and the harsh reality of incompetent spendthrift Political leaders driving the worlds largest and most successful economy to destruction must be faced. The EUR drifted at 1.3215 and the GBP 1.6075 with the Eurozone a basket case also. In the US, Consumer Confidence collapsed from 71.5 to 65.1 reflecting the state of the most important driver in the economy.
New Home Sales did provide some positive relief rising 4.4% and Weekly Jobless Claims fell by 12,000. China Industrial Production continued to defy global markets, rising 3.0%, supporting commodity prices. The AUD held 1.0370 and the KIWI 0.8175.
Market trade is light so the fall in US equities is accentuated and could be addressed by a last minute deal fashioned by the President. It is more likely they will fall over the Fiscal Cliff but will introduce some new Obama Tax Cuts after the New Year!
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=105143
1:58 PM Sun 30 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:
|
23 Dec 2012 |
Collinson FX Market Commentary: December 21, 2012 - Boehner's Plan B
|
|
20 Dec 2012 |
Collinson FX Market Commentary: December 20, 2012 - Fiscal Cliff negs
|
|
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
|
|
 |
MORE STORIES ...
|
|
|
|
Our Advertisers are committed to our sport, please support them!
This site and its contents are © Copyright TetraMedia Pty. Ltd and/or the original author, photographer etc. All Rights Reserved.
Photographs are copyright by law. If you wish to use or buy a photograph you must contact the photographer directly (there is a hyperlink in most cases to their website, or do a Google search.) with your request.
Please do not contact
Sail-World.com
as we cannot give permission for use of other photographer’s images.
Only if the photographer named on the image is Sail-world.com, Powerboat-world.com, Marinebusiness-world.com or NZBoating-World.com.
Contact us
.
Ph: +61 2 8006 1873
or complete our
feedback form
Contact us
.
View our Privacy Policy.
[ Go Home]
[ Banner Advertising Specification]
[Bot Archive ]
Customised news feeds -Marine Industry companies, Clubs and Associations have their own customised version of our news feed on their website.
Look_here_to_see_examples
|
CLD
| | |
