New York Market Wrap-Up

Thursday, 01/10/2009 | 20:12 GMT

Economic Data

US Jobless Claims increase to 551k from 530k the previous week
US Personal Spending rises in August to +1.3 % m/m from +0.3 % (revised from +0.2 %) expectations were for +1.1 %
US Personal Income +0.2 % m/m from +0.2 % (revised from flat) slightly better than +0.1 % that was expected.
US ISM Manufacturing Index below expectations in Sept. at 52.9 from 52.6 versus expectations of 54.0
US Pending Home Sales in August were far better than expected (+1.0 %) in August at +6.4 % m/m from +3.2 %
US Construction Spending in August +0.8 % m/m from -1.1 % (revised from -0.2 %) versus market expectations of -0.1 %

Comments

Canada’s ruling Conservative are set to survive a “non-confidence” vote tonight at 5.30 tabled by the Liberal Party, the biggest opposition party. The Conservatives are well ahead of their rivals in the polls. IF the motion is successful then Canadians would be headed to the polls for the second time in just over a year. ALL 3 opposition parties are required to vote for the motion if they are to topple the Conservatives however the left leaning New Democrats made it clear yesterday that they would vote either against the motion or abstain.
Bernanke says there is no immediate risk to the US Dollar losing its status as the global reserve currency but the US should get its fiscal house in order otherwise it could pose a risk to the dollar.
Bernanke talking on executive pay says that the Federal Reserve is looking to international standards set by the FSB in setting guidelines for executive pay. He says that there should be appropriate links between performance and pay and that it should be a safety and soundness issue. Pay should not give incentives for risk taking in the short-term.
Article in Fridays Daily Mail on Tony Blair becoming EU President.

Currencies

Euro against the dollar traded higher to 1.4570 on the lower stock market open. A push lower to test the resolve of a strong 1.4540 bid before a hedge fund bought Euros at the fixing caused the currency to spike to a high of 1.4582 before drifting off and range traded between 1.4525 – 1.4545
Dollar traded lower against the yen as the stock market opened lower from 89.95 to 89.60 and then a further push to the session low of 89.40. Since the European close has traded between 89.55 – 89.75
Sterling strengthened mid morning as an order against the Euro went through testing the support level of 0.9080 making a session high of 1.6015 against the dollar. On the close of business the Euro Sterling move was reversed with the cross testing the topside around 0.9120 with the cable falling to session low of 1.5930. Since the London close sterling has traded in a 1.5935 – 1.5960 range.
Dollar-Swiss after the SNB activity of yesterday was sidelined opening at 1.0440 before trading most of the session in a 1.0410 – 1.0430 range apart from a brief dip below 1.04 to 1.0394 when the dollar was sold off.
Australian and New Zealand dollars both under pressure all day and drifting lower. Currently trading on the days lows at with Aussie breaking 0.8700 and Kiwi 0.7150

Ranges

Stock Markets