European Markets Drop On ECB Withdrawal

European Trade: European shares moved lower in trade on Friday trade, following the Asian equity market that closed in the red. S&P futures moved side-ways throughout the overnight trading hours, but dropped eight points as the news that the ECB will withdraw their cash liquidity from the market over the…

Weekly Focus: Squaring Positions

At 0.69% the 2-year US bond yield is only 5bp from the low point during the crisis reached a year ago. 3-Month t-bill rates are again trading around 0%. Mainly two factors are behind this development. First of all, investors and banks are most likely reducing risk towards year-end putting…

Trichet Tempers European Rate Rally

Apart from giving the euro a slap in the face Jean Claude Trichet’s remarks about wrapping up the cheap loans awarded to the European banking system a year ago tempered the recent rally in European interest rate futures this morning. One has to be careful where to go with the…

Bernanke Sees Headwinds for US Recovery

EUR-USD was over 1.49 for most of the week, despite the fact that the majority of US indicators turned out weaker than expected, which, according to the pattern of the last few weeks, should in fact have had a dampening impact. In addition, Fed president Ben Bernanke revealed that he…

Weekly Market Commentary

Stock indices should drift through to year-end, but not collapse. FX will continue to consolidate, as should most commodities, with a tendency for the Yen to strengthen slightly and for the US dollar to weaken medium term. Longer-dated Treasury yields will move lower as investors realise that ultra-low official target…