MARKETS: ‘ Employment rises giving Fed key indicator to raise interest rates ‘

#AceMarketsNews – WASHINGTON:Aug.07: U.S. employers added a solid 215,000 jobs in July, signaling a steadily rising job market and providing a key piece of evidence for the Federal Reserve in deciding whether the economy can withstand higher interest rates as soon as September.


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“Markets In Turmoil” Dow Suffers Worst Streak Since 2011, Yield Curves Collapse

#AceFinanceNews – Featured Report: Nail-biter… or Cliff-hanger? (Stallone is The PPT, the girl is the market, the carabiner is The Fed, the guy in the other chopper is CNBC)

  • * *

Post-Payrolls reaction…

Despite reassurances that a) rate-hikes are priced-in, 2) rate-hikes are bullisher for stocks than rate-cuts (why would The Fed raise rates if everything was not awesome?), and thirdly) buy the dip! It appears the rising rate-hike probability is ‘coincidental’ with markets turmoiling…

But don’t forget…

Flashback Friday! cc @jtcrombie @zerohedge

— Rudolf E. Havenstein (@RudyHavenstein) August 7, 2015

Equity markets in turmoil… Small Caps broke…

And Futures show the big drops…but Europe-based drift higher…

  • Dow down 7 days in a row – first time since Aug 2011
  • Dow down 800 points in 3 weeks – worst run since Aug 2011

Note – Death cross (50DMA crossing below 200DMA) looms…

The S&P was held above its 2014 close and the 200DMA (2073) was very aggressively defended… thanks to a VIX clubbing…VIX ended the day lower!!! bwuahahahah!!!

The ramp effort broke the markets…

NYSE’s direct feed clock just went whack – slowing dropping 10,000 micros over 15 minutes:

— Eric Scott Hunsader (@nanexllc) August 7, 2015

  • Biotechs down 9.2% – biggest weekly drop since Aug 2011
  • Media down 8.4% – worst week since Aug 2011
  • Energy down 2.7% – down 13 of last 14 weeks
  • AAPL down 5.1% – worst week since Jan 2014; worst 3 weeks (-11%) since Jan 2013

Catching down to credit…

VIX up 19% – biggest weekly jump since Jan 2015 before the gapping effort down at the close to rescue stocks…

In Bond land…

  • 2Y Yield rose 6bps – biggest jump since June 2015 (near 4 year highs)
  • 30Y Yield down 5 of last 6 weeks (40bps biggest drop since Jan 2015)

  • 2s30s Curve down 14bps – biggest weekly flattening since April 2013
  • 5s30s Curve down over 9% – biggest weekly flattening since Sept 2011

The Corporate (IG and HY) Bond market is not happy…

  • HYCDX +40bps in 3 weeks – worst run since Dec 2014, highest risk since Dec 2014

  • HYG down 1.25% to lowest since Nov 2011 (worst 3 week run since Dec 2014)


Commodity Carnaged…

  • Crude down 7.0% – down 6 weeks in a row (28% drop) to 5mo lows
  • Copper down 11 of last 12 weeks – lowest since July 2009
  • Silver Up 0.6% (before post-close slide) – best week in 3 months, breaks 5 week losing streak
  • Gold could not hold green – extends losing streak to 7 weeks

But not everything was down…

Note that Oil and stocks have become highly correlated once again…

As Crude was clubbed back to a $43 handle close…

Ironically, FX markets were actually relatively quiet (at least in the majors)…

Although EM saw some pain (from Ruble to Real…)

Charts: Bloomberg

Bonus Chart: VIX under 14 and CNN Fear-and-Greed Index collapses to 10!!

Original Article:


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Article: Union files pay claim to Sports Direct over zero hours contracts

#AceFinanceNews – Aug.07: Union files pay claim to Sports Direct over zero hours contracts

Related topics: Worker’s Rights, Living Wage, Fight for $15


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FRANCE: ‘ Egypt & Saudi-Arabia want to purchase 2-Mistrals to build their sea-power ‘

#AceFinanceNews – FRANCE:Aug.07: Egypt and Saudi Arabia are interested in buying two French Mistral warships, AFP said, citing media reports on Friday.

The warships had been sold to Russia before the French authorities scrapped the deal. Egypt and Saudi Arabia “are desperate to buy two Mistrals,” an unnamed official French source told France’s leading daily, Le Monde. “King Salman of Saudi Arabia wants to build a fleet in Egypt which could project regional power in the Red Sea and Mediterranean,” according to the source.

The reports came a day after President Francois Hollande attended a ceremony marking the inauguration of a major Suez Canal extension in the Egyptian port city of Ismailia.


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MARKETS: World stocks, dollar flat before U.S. jobs data

#AceMarketsNews – LONDON (Reuters) Aug.07: Investors moved to the sidelines on Friday, with the dollar and world stocks markets barely budging, before U.S. jobs data that are considered a key to convincing the Federal Reserve to raise interest rates for the first time in nearly a decade.

Europe opened weaker as a report showed exports in Germany dropped but analysts said that was just a sideshow to U.S. non-farm payrolls data due at 1230 GMT.

Major currency markets steadied with the dollar stuck exactly where it has been since March.

The prospect of higher rates has made non-interest-bearing gold less attractive. It was set to record its longest weekly losing streak since 1999 on Friday.

Economists expect the U.S. employment report to show 223,000 jobs were created in July. Along with upbeat U.S. economic data and hawkish comments by a Fed official this week, that would support the case for higher rates.

“We are currently 40 percent for September and 60 for December because there are still doubts in the corner of the doves,” said Philip Marey, an economist at Rabobank. “I think if you are going to hike rates for the first time in many years you want show a united front. If they went in September there would probably be quite a few doves voting against it.”

In Europe, stocks edged 0.5 percent lower after data showed German exports and industrial output falling in June, a setback that underlined the need for central bank stimulus in the euro zone.

Top-rated German bond yields were flat at 0.72 percent.

The prospect of higher U.S. rates has sucked funds out of emerging markets. A slump by Chinese stocks and a rout in commodities has also hurt investor demand.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4 percent and set for its third straight weekly loss.

Japan’s Nikkei stock index was up 0.3 percent, erasing earlier losses from investors taking profits after the Bank of Japan kept its stimulus programme unchanged, as expected.

The MSCI world index has advanced 3 percent this year and the MSCI emerging markets index has fallen more than 6.5 percent, as investors have switched their holdings.

In currencies, the dollar index was unchanged at 97.81. The euro was also flat $1.0927 early in Europe.

Oil prices, which have dropped to multi-month lows in previous session, steadied on Friday before the U.S. jobs report.

The 19-commodity Thomson Reuters/Core Commodity CRB Index also hit lows not seen since 2003 with a year-to-date decline of nearly 14 percent.

(Additional reporting by Marc Jones and Saikat Chatterjee, editing by Larry King)

World stocks, dollar flat before U.S. jobs data


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MARKETS: German industrial production drops unexpectedly in June

#AceFinanceReport – BERLIN (AP) Aug.07: German industrial production unexpectedly dropped in June as a result of weaker performances by the construction and machinery sectors and calendar effects caused by public holidays. Exports also dropped more than expected.

The Economy Ministry said Friday that production in Europe’s biggest economy was down 1.4 percent compared with the previous month. Economists had expected a 0.3 percent gain.

In a separate report, the Federal Statistical Office said that exports dropped 1 percent — worse than the forecast 0.3 percent decline — while imports were 0.5 percent lower.

Germany’s trade surplus slipped to 22 billion euros ($24 billion) from 22.8 billion euros in May.

UniCredit economist Andreas Rees described the drop in production as a “statistical fluke” rather than providing any evidence of an impact from slowing growth in China.

Original Article:


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#GREECE Germany finance ministry favours bridge loan in case of election allowing for quick #Grexit

#AceFinanceNews – Germany is favours a bridging loan over a full deal – allowing a quick #Grexit should the government decide on a quick election to oust #Tsipras

BERLIN (Reuters)-Aug.07: Germany’s Finance Ministry favours a bridge loan for Greece to give Athens and its creditors sufficient time to negotiate a comprehensive third bailout, the Sueddeutsche Zeitung daily reported on Friday.

“A programme that should last three years and be worth over 80 billion euros needs a really solid basis,” the paper quoted a ministry source as saying. “A further bridge loan is better than just a half-finished programme.”

German Finance Ministry favours bridge loan for Greece – paper


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