The Week in Review, October 7, 2010 Monday, Oct 11 2010 

On Monday we opened with a selloff down to the bottom of the trend channel where we rattled around for most of the day.

Chevron will begin buying back shares at the rate of $500 million to $1 billion dollars per quarter.

Tuesday brought a surprise rate cut from the Japanese pushing rates back to essentially zero and pledges to buy 5 trillion yen in continued efforts to revive the economy and protect the currency.

The Reserve Bank of Australia decided to keep rates steady in a surprise move as well. The RBA was expected to hike rates by 25 bp in an effort to put a lid on inflationary pressures.

The Indonesian Central Bank held steady as well choosing not to raise interest rates.

Tuesday’s big move looked to be a coordinated action in order to help Japan. Inflationary pressures are on the rise in Asia everywhere except for Japan and while the Indonesian Central Bank was expected to keep rates on hold Australia was widely expected to raise rates.

Euro zone 2nd Q GDP came in at 1.0%, unchanged from the previous estimate.

While Trichet held ECB rates steady he made some curious comments about the ECB making policy for the euro area as a whole and not for a few countries. The implication is that if the larger countries continue to expand the policy rate will be hiked even if there are countries still in a recession. If true, this is a thinly veiled message to the PIIGS that they will need to get their house in order quickly as waiting increases the risk that they will be left behind.

The US unemployment report showed a mixed bag in September as businesses are still hesitant to add jobs. While the headline rate was steady at 9.6% the U-6 rate, which is described as the “total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force”, jumped by 0.5% to 17.1%.

Next Week

Monday – Canadian markets closed

Tuesday – Minutes from FOMC meeting

Wednesday – Euro Industrial Production for September

Thursday – US PPI, OPEC meeting Vienna

Friday – Japan Industrial Production, Europe Core Inflation, US CPI, and Retail Sales

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Communications are intended solely for informational purposes. Statements made should not be construed as an endorsement, either expressed or implied. This article and the author is not responsible for typographic errors or other inaccuracies in the content. This article may not be reproduced without credit or permission from the author. We believe the information contained herein to be accurate and reliable. However, errors may occasionally occur. Therefore, all information and materials are provided “AS IS” without any warranty of any kind. Past results are not indicative of future results.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN THE STOCK, BOND, AND DERIVATIVE MARKETS. WHEN CONSIDERING ANY TYPE OF INVESTMENT, INCLUDING HEDGE FUNDS, YOU SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTING IMPORTANT TAX INFORMATION, ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.
Before making any type of investment, one should consult with an investment professional to consider whether the investment is appropriate for the individuals risk profile. This is not intended to be investment advice or a solicitation to purchase any of the securities listed here. I will not be held liable or responsible for any losses or damages, monetary or otherwise that result from the content of this article.

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The Week in Review, October 1, 2010 Saturday, Oct 2 2010 

Markets moved sideways this week as end of quarter portfolio dressing took hold and investors looked ahead to next week when Alcoa kicks off earnings season on Thursday.

It looks to be a week as we start with a Bank of Japan meeting where FX intervention will be on everyone’s mind. Tuesday’s statement will be closely watched for clues as to further intervention. Wednesday brings us the final statement on 2nd Q GDP from the EU and Alcoa kicks off earnings season on Thursday.

Next Week

China is on holiday until Friday.

Monday – US Pending Home Sales, Bank of Japan meeting

Tuesday – Bank of Japan Monetary Policy Announcement,

Wednesday – EU 2nd Q GDP final

Thursday – Alcoa kicks off the 3rd Quarter earnings season in the US, Great Britain GDP estimate, Bank of England Policy Announcement, ECB Policy Announcement

Friday – US September Unemployment Rate

Disclaimer
Communications are intended solely for informational purposes. Statements made should not be construed as an endorsement, either expressed or implied. This article and the author is not responsible for typographic errors or other inaccuracies in the content. This article may not be reproduced without credit or permission from the author. We believe the information contained herein to be accurate and reliable. However, errors may occasionally occur. Therefore, all information and materials are provided “AS IS” without any warranty of any kind. Past results are not indicative of future results.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN THE STOCK, BOND, AND DERIVATIVE MARKETS. WHEN CONSIDERING ANY TYPE OF INVESTMENT, INCLUDING HEDGE FUNDS, YOU SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND DELAYS IN DISTRIBUTING IMPORTANT TAX INFORMATION, ARE NOT SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.
Before making any type of investment, one should consult with an investment professional to consider whether the investment is appropriate for the individuals risk profile. This is not intended to be investment advice or a solicitation to purchase any of the securities listed here. I will not be held liable or responsible for any losses or damages, monetary or otherwise that result from the content of this article.