New York:
May 22 1:02 | London:
May 22 6:02 | Tokyo:
May 22 14:02
| Europe | • | Americas | • | Asia | • | Weekly Wrap Up | • | Monthly | • | Sign In | Listen Live with a Free Guest Pass |
Weekly Wrap Up TRADETHENEWS.COM
STAFF
Earnings On, Risk Off October 8 - October 12
- Markets were in a risk-off mood this week as the September quarter earnings season began. Equity indices in the US, Europe and Japan lost ground after the World Bank and IMF cut their 2012 and 2013 global growth estimates ahead of their respective annual meetings in Tokyo. The cuts were no great surprise, and investors seem to have used them as a good excuse to take more profits after the late September top. Europe limped along as German Chancellor Merkel flew into Athens for a "solidarity visit" that was greeted with mass demonstrations and generated no concrete results. One of the largest growth downgrades in the IMF report was Spain's 2013 GDP, which the IMF cut to -1.3% from the prior view of -0.7%, further undercutting the overly-rosy projections that underpin the Spanish government's 2013 budget proposals. The ESM was officially activated, although Spain continues to officially insist that a bailout is really not necessary. Yields on Spanish 10-year debt remained well below 6.0% this week, and some commentators suggested Madrid may continue to drag its feet on any bailout request until yields are forced higher again. An S&P downgrade of Spain's sovereign rating to the lowest level of investment grade may have foreshadowed a Moody's downgrade to junk that could be forthcoming in the next few weeks. For the week the DJIA fell 2.1%, the S&P500 dropped 2.2% and the Nasdaq declined 2.9%. Interestingly, the Dow Jones Transports were flat on the week, closing some of the conspicuous gap that has been growing between the Transports and the Industrials.
- Shares of Apple, which is now nearly an index in and of itself, officially entered correction territory this week, as they have now fallen more than 10% from the high of $705/share seen on September 21st, the day iPhone 5 sales began. The unveiling of the new iPad mini, Apple's entry into the e-reader sized tablet dominated by the Kindle Fire, was pushed back a week to October 23, two days before its quarterly earnings report. ...
- Shares of Apple, which is now nearly an index in and of itself, officially entered correction territory this week, as they have now fallen more than 10% from the high of $705/share seen on September 21st, the day iPhone 5 sales began. The unveiling of the new iPad mini, Apple's entry into the e-reader sized tablet dominated by the Kindle Fire, was pushed back a week to October 23, two days before its quarterly earnings report. ...