+0.37%
+0.00%
Here’s my take on the markets today, March 30, 2012. If you’d like to read more of my articles, click here.
Credit gauges are mixed today. The TED Spread is falling -1.25% to 40.2 bps. The 3M EUR/USD Cross-Currency Basis Swap is rising +.98% to -50.5 bps. The 2Y Swap Spread is down -2.1% to 24.54 bps. The Western Europe Sovereign CDS Index is down -1.47% to 269.20 bps. However, the Libor-OIS Spread is up +1.48% to 34.2 bps. The European Financial Sector CDS Index is rising +1.5% to 220.97 bps. The Italy sovereign cds is rising +1.54% to 397.51 bps. Overall, credit gauges have been worsening of late.
Major Asian indices were mostly higher, led by a +2.0% gain in India. The Shanghai Composite bounced +.47%, but is down -3.7% over the last 5 days and has cuts its gains for the year to +2.9%. As well, China’s ChiNext Index of smaller growth-oriented companies fell another -.8% overnight and is down -8.1% this week. Major European indices are rising around +.75%, led by a +1.3% gain in France. Spanish shares are bouncing +1.2% today, but are down -3.9% this week and -7.1% ytd, which remains a large red flag for the region. The Bloomberg European Financial Services/Bank Index is rising +1.0% today.
US stocks continue to trade very well as every small dip is still seen as a buying opportunity and almost all negatives are ignored. Investor complacency is fairly high again given the recent deterioration in the macro backdrop. Volume is especially light for a quarter-end, which should help the bulls to maintain their edge into the afternoon. Despite the positive consumer spending and confidence data, the 10Y Yld is falling -1 bp to 2.15%, which is a worry. I covered all of my index trading hedges this morning and I am positioned 100% net long.
Related posts:
