Skip to main content

Global equities shrug off bond sales

"Global equities shrug off global bond sales". That's the news from Financial Times' weekend edition. Here's market coverage from FT.com:

Global equities shrugged off the rout in government bonds this week, with markets on both sides of the Atlantic closing on Friday near records.


Leading indices on Wall Street were near lifetime peaks, while European and UK stocks closed at their highest level since 2000. Equities were under heavy selling pressure earlier in the week as the yield on the 10-year US Treasury bond struck a five-year high at 5.33 per cent amid concerns that strong US economic growth would rule out interest rate cuts by the Federal Reserve this year.

European government bonds have also been trading at five-year peaks recently on expectations that eurozone rates could be raised by more than expected.

But sentiment turned round sharply on Wednesday as investors felt that the bond market sell-off had been overdone. Benign
US inflation data on Friday further improved investors’ mood, with core inflation in May coming in at 0.1 per cent, against an expected 0.2 per cent. This helped yields stabilise.

On Wall Street, the S&P 500 index closed up 1.7 per cent on the week, and the Dow Jones Industrial Average up 1.6 per cent. In London, the FTSE 100 rose 3.5 per cent over the five-day period to finish within 200 points of its all-time high late in 1999.


For more on recent comments from the European Central Bank, read on at the link above.
Happy Father's Day, everyone.

Popular posts from this blog

Nasdaq credit rating junked.

S&P cut Nasdaq's credit rating to junk status citing debt burdens and its questionable strategy to buy a controlling interest in the London Stock Exchange. Financial Times reported that the exchange's counterparty credit & bank loan rating were lowered fromm BBB- (lowest investment grade rating) to BB+. The change will increase Nasdaq's borrowing costs should it wish to pursue aquisition targets. For an earlier look at the exchange consolidation trend that brought about Nasdaq's push for a stake in the LSE, please see "Exchange fever" .

Clean Money - John Rubino: Book review

Clean Money by John Rubino 274 pages. Hoboken, New Jersey John Wiley & Sons. 2009. 1st Edition. The bouyant stock market environment of the past several years is gone, and the financial wreckage of 2008 is still sharp in our minds as a new year starts to unfold. Given the recent across-the-board-declines in global stock markets (and most asset classes) that have left many investors shell-shocked, you might wonder if there is any good reason to consider the merits of a hot new investment theme, such as clean energy. However, we shouldn't be too hasty to write off all future stock investments. After all, the market declines of 2008 may continue into 2009, but they may also leave interesting investment opportunities in their wake. Which brings us to the subject of this review. John Rubino, author and editor of GreenStockInvesting.com , recently released a new book on renewable energy and clean-tech investing entitled, Clean Money: Picking Winners in the Green Tech Boom . In Clean ...

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and...