sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Collinson FX Market Commentary: July 12, 2012 - Taxmageddon looms
Collinson FX Market Commentary: July 12, 2012 - Taxmageddon looms

'Image of the day Panerai British Classic Week 2012 Gipsy Moth IV'    Guido Cantini    Click Here to view large photo

Collinson FX market Commentary: July 12, 2012

Equity markets continued to fall hit by lower earnings and lower expectations around the Fed's QE programs. European markets have been undermined by further bad news, this time from the IMF. They warned that Italy must 'break the debt spiral' as Spain moved to introduce a new package of fiscal reduction.

Bond levels indicate that these major member nations are at critical tipping points. US markets took the lead and the sentiment was amplified by the release of the Fed's minutes. The key phrase that tipped the negative reaction was 'unusually high uncertainty' with revised growth forecast lower and Unemployment to remain at these high levels.

The US Trade Deficit narrowed by 3.8% but the devil was in the detail! The reason for the contraction was falling Consumer Demand and Lower Oil prices. Weekly Mortgage Applications were also lower by 2.1%.

The Fed's minutes indicated no new QE just a continuation of the operation twist with major warnings regarding the coming fiscal cliff approaching labelled 'Taxmageddon!'. The Dollar slipped and commodities rebounded giving support to the associated currencies.

The AUD rallied to trade 1.02280 and the KIWI 0.7950. Banks are now revising US GDP growth forecast lower to around 1.5% confirming a slump in demand and the filter through to corporate earnings.

This weeks bearish markets confirm the economic slump and the evolving crises creating uncertainty.

Politicians are unlikely to act to address this due to US elections and the patchwork nature of EU Political control. Hard to be optimistic in this environment.

Image of the day VX One will be featuring at Hamilton Island Race Week -     Click Here to view large photo


Collinson FX market Commentary: July 11, 2012

The economic slowdown is now impacting the previously sterling corporate earnings. The DOW took a nose dive late in the trading day after initially finding some support after EU Finance Ministers announced pending support for the endangered banking sector. EU Finance Ministers look to release EUR$30 Billion of the EUR$100 Billion announced in the latest banking bailout.

Seems a drop in the ocean despite the enormity of the amounts. The exposure these Spanish Banks have will eat that up in no time! Italian and French Manufacturing and Industrial Production continued to tank with worrying signs across the single market. Monetary largesse has not solved fiscal irresponsibility that has now snowballed out of control. The sheer size of the debt and deficits can only mean collapse in these Southern States.

The problem is too big for the Northern Nations to bail as they would go with them! Profit warnings from major corporates in the US has spooked equity markets with fears of the economic armegeddon impacting Corporate earnings. Small Business Optimism continued to plunge and the US looks to uncertain times with Political stalemate in the lead up to November Presidential elections.

The EUR pushed to new lows at 1.2250. Further risk aversion has put some pressure on the AUD now down to 1.0175 and the KIWI slipping to 0.7925.

NZ Home Sales spiked along with House Prices and now stand at pre-GFC levels fueled by low interest rates and lack of supply. Building costs had overwhelmed reality and existing supplies now are insufficient to supply demand. It is all relative though and real wealth continues to fall across the globe!

Image of the Day Soto 40, Class: - Rolex Ilhabela Sailing Week 2012 -  © Rolex-Carlo Borlenghi  


Collinson FX market Commentary: July 10, 2012

The earnings season commences after the closing bell in New York with Alcoa. Alcoa surprised markets last go around but will be under extreme pressure with aluminium prices crashing globally and electricity input costs blowing out.This has immediate impact on Aluminium production closures, as experienced in Australia, exasperated by the implementation of the all new Carbon Tax!

Equity markets fell as EU Finance Ministers gather for yet another talk fest to solve the EU debt crises, and more particularly, the single currency. The EUR was trading around lows at 1.2300, under extreme pressure, as Spanish Bonds hit trigger point. Bonds broke through the bailout trigger level of 7% which signalled the bailout of fellow PIIGS nations. Corporate Earnings have been stellar recently but the weaker economic data of late, may start to impact.

The Chinese CPI fell to 2.2% and PPI dropped 2.1%, reflecting a big fall off in demand and growth. The Chinese have acted, cutting interest rates twice in the last couple of weeks. This could be interpreted as panic as the EU crises impacts demand and production. Commodity prices rose, after the Chinese cuts were expected to spike demand for commodities although risk aversion undermined gains in the AUD.

The AUD dipped below 1.0200 with Job advertisements falling. The KIWI followed suit now trading 0.7950. The European crises continues to dominate markets and it would need some fairly radical news to influence sentiment otherwise.

There is no short term fix for Europe, hence the crises continues to unfold and undermine global markets. The US is suffering and the Presidential Election campaign will ensure no radical economic reactionary moves to rectify the situation.

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=99614

10:28 AM Thu 12 Jul 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:

13 Jul 2012  Collinson FX Market Commentary: July 13, 2012 - Consumer confidence up
11 Jul 2012  Collinson FX Market Commentary: July 11, 2012 - NZ Home Sales spike
10 Jul 2012  Collinson FX Market Commentary: July 10, 2012 - EU talk fest resumes
08 Jul 2012  Collinson FX Market Commentary: July 7, 2012 - Employment stuck in US
06 Jul 2012  Collinson FX Market Commentary: July 6, 2012 - China, Europe cut rates
05 Jul 2012  Collinson FX Market Commentary: July 5, 2012 - Independence Day
04 Jul 2012  Collinson FX Market Commentary: July 4, 2012 - Quiet times in US
02 Jul 2012  Collinson FX Market Commentary: July 2, 2012 - Markets surge on EU
29 Jun 2012  Collinson FX Market Commentary: June 29, 2012 - A double blow
28 Jun 2012  Collinson FX Market Commentary: June 28, 2012 - Tonight's the Night
MORE STORIES ...




News - USA and the World





















Aldo Alessio Regatta - Three days of tight racing by Erik Simonson, Pressure-Drop.US,










Sailing Champions League - which is Europe's best sailing club? by Dan Ibsen & the Sail-World team, Copenhagen


Weta fun at the Wine & Roses Regatta by Bruce Fleming, Santa Barbara
















J/111 World Championships - The Winner is Shmokin Joe! by Stuart Johnstone, Cowes, Isle of Wight












2014 Detroit Cup - Morvan wins by Dobbs Davis, Detroit






Extreme Sailing Series: Absent With-Out Leave – Ben Ainslie Racing
2014 IFDS World Championship - New champions claim medals
2014 IFDS World Championships - Sunday’s race images by Tim Wilkes
Shark World Championships underway in Toronto
Anna Tunnicliffe: Alinghi second o'all - Extreme Sailing Series, Day 3
Formula Kite World Championships - Nocher and Bridge crowned Champions
Emirates Team NZ: Frustrating Day 3 in Extreme Sailing Series, Cardiff
Extreme Sailing Series: Light winds help The Wave Muscat - Day 3
Extreme Sailing Series 2014 Act five - Absent without leave – the wind
IFDS Worlds 2014 - Images: Race day five
Herreshoff Classic Regatta 2014 - Images by Ingrid Abery
Youth Olympics - Gold to Argentinean and Chinese Techno 293 racers
Youth Olympics Games Nanjing - Double Youth Olympic Gold for Singapore
Sevenstar Round Britain and Ireland Race 2014 - Two Handers celebrate
Audi Melges 20 U.S. National Championship 2014 - Brazilian dance party
IFDS Disabled Sailing Worlds Day 5 - USA fighting for Rio 2016 Berths
J/111 World Championship 2014 - Day 4: Shmokin Joe consolidates lead
Anna Tunnicliffe: Alinghi on top - Extreme Sailing Series, Day 2
2014 IFDS World Championships - Breezy frustrations
2014 Detroit Cup - Down to the final four
Sevenstar Round Britain and Ireland Race - Every finisher's a winner   
2014 49er, 49er FX, Nacra 17 U.S. National Championship - Day 2   
J/24 US National Championship - Will Welles leaps into lead   
J/111 World Championships - Day 3   
Extreme Sailing Series Act 5 – Day 2   
Light wind and a freak storm at Youth Olympic Sailing Competition   
31st Audi Hamilton Island Race Week - Declared 'best ever'   
2014 IFDS World Championships - Aussies on fire   
2014 IFDS World Championships - Saturday’s racing images by Tim Wilkes   
2014 IFDS World Championships - Day 5 images by Jude Robertson   
2014 Audi Melges 20 U.S. National Champ - Day 3 images by Joy Dunigan   
Holt’s 25-year dream comes true with 505 Worlds Victor   
Emirates Team NZ: Collision puts an end to bid for a better day at ESS   
Extreme Sailing Series: Ben Ainslie Racing - mixed results on Day 2   
America's Cup: New brand and image partnership announced with SME   
Extreme Sailing: Tough and testing day on Cardiff Bay - Day 2 + Video   
2014 49er, 49er FX, Nacra 17 U.S. National Championship - Day 1   
2014 J/111 World Championship - Bigger breeze arrives on day 2!   
2014 Detroit Cup - Quarter-finalists determined   
2014 AWT Quatro Desert Showdown - Best Amatuer final ever!   


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 WAS US
LocalAds   DE  ES  FR  IT