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May 2013

Prospects Daily: Vietnam bond yields slide…US and German private spending weakens…India GDP growth slows to 10-year low

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Financial MarketsGerman bonds and U.S. Treasuries extended their gains on Friday as discouraging economic data from both countries boosted demand for the safe-haven government debt. Treasury 10-year yields fell for a third day, trimming the biggest monthly rise since December 2010, as U.S. consumer spending declined last month by the most in nearly a year. Germany 10-year yield 5 bps to 1.47% as the retail sales in Europe’s largest economy unexpectedly dropped.

Prospects Daily: Global equities and bonds retreat, Italy business confidence improves, Brazil GDP slows

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Financial Markets…Global equities and bonds fell today amid concern the Federal Reserve may soon begin to trim its bond purchase program. Benchmark index for Europe and developing countries lost 1.4% and 0.6%, respectively, and U.S. equities opened lower in morning trading. In contrast, Japans’ Topix bucked the downward trend, closing 0.9% higher after gaining 1.2% yesterday. In bond markets around the world, yields on safe-haven German and U.S. government debt climbed accompanied by those from riskier or higher-yielding sovereign bonds.

DECPG Daily : May 24, 2013 - Bond yields are up…German business confidence improves, Italian drops…Peru GDP slows

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Financial Markets…Japans’ Topix index gained 0.5% today, bouncing backing slightly from its biggest drop since the 2011 earthquake and nuclear disaster. Yesterday’s plunge, which many investors suggested marked a long-overdue correction, cut the Topix’s 2013 gain to 38% to 48%, and erased $314 billion in stock market valuation.

Prospects Daily: Japan affirms its monetary easing plans, US housing market continues recover, Russia industrial production slows

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Financial Markets…The yen weakened to a three-year low against the euro on Wednesday, slumping to as low as 133.30 per euro in early trading, as the Bank of Japan affirmed its plan to expand the monetary base and upgraded its assessment of the economy. Weakening yen pushed the benchmark Nikkei stock index to the highest closing level since December 2007.

Prospects Daily: Gold, silver continue declines, US leading indicator improves, Thailand and Chile GDP growth slows

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Financial Markets…The yen gained the most in three weeks versus the dollar on Monday, appreciating 0.7% to 102.56 per dollar, after Japan’s economy minister suggested further slide in the currency may have negative effects. Japan’s currency declined 21% in the past six months and fell to a 41/2 year low last week. Weaker yen have pushed Japanese government bonds lower and sent the country’ benchmark stock index to a 41/2 year high.

Prospects Daily: Turkish bond yields at record lows on rating upgrade, Spain posts first monthly trade surplus, Russia and Mexico GDP slows.

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Financial Markets…Turkish government bonds rallied on Friday, with the benchmark 2-year note yield sliding 19 basis points to a record low of 4.61%, after Moody’s Investor Service raised the country’s credit rating to investment grade for the first time in two decades. Rates on the 2-year bonds have tumbled 138 bps this year. The nation’s stocks also rallied, sending the Borsa Istanbul 100 index gained as much as 1.3% to record highs.

World Bank publishes Commodity Price Forecasts - May 2013

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The World Bank just published the May 2013 edition of commodity price forecasts. Most prices are expected to decline in 2013, a reflection of improved supply conditions (most commodities, including food), diminished geopolitical risks (crude oil), less appetite for safe haven assets (precious metals), and lower energy prices (fertilizers).

Prospects Daily: Italian and Spanish bonds fall, Eurozone remains in recession, Malaysia GDP growth slows

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Financial Markets…Foreign demand for US assets declined for a second consecutive month in March as signs of global economic stability encouraged the “risk on” trade. Net foreign sales of long-term US equities, bonds, and other financial assets totaled $13.5 billion during the month of March, up slightly from a net selling of $13.3 billion in February.

Prospects Daily: Eurozone IP recovers, Brazil’s Petrobras sells the largest developing-country debt on record, India’s inflation eases in April

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Financial Markets… Japanese government bonds declined for a third day on Tuesday, sending 5-year yields to a near two-year high of 0.4%, as a rise in country’s stocks and U.S. Treasury yields damped demand for the country’s debt which carries one of the lowest yields in the world. The benchmark 10-year bond yield climbed as much as 61/2 basis points to 0.855%.

Prospects Daily: Dollar continues to rise, US retail sales flat in April, Chinese investment eases

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Financial Markets…The dollar extended its gains on Monday, pushing oil and gold prices lower, on a better-than-expected US retail sales report for April, bolstering optimism in the world’s biggest economy. The DXY index, which tracks the greenback’s values against its major counterparts, has gained 5% since Friday. The S&P 500 index opened lower amid some profit taking after rising to a record high on Friday. US Treasuries meanwhile continued to fall, pushing the benchmark 10-year yield to a seven-week high of 1.92%, on lower demand for safe-haven government bonds.

Prospects Daily: Japanese Yen weakens further…German exports pick up…Mexican industrial production contracts sharply

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Financial Markets…G3 government bonds declined on Friday, as signs that their economies is improving amid monetary stimulus damped demand for the safe-haven debt. U.S. 10-year Treasury yield rose as much as 6 basis points to a five-week high of 1.87%, while comparable yields on German and Japanese bonds climbed 3 bps and 10 bps to 1.3% and 0.69%, respectively.

Prospects Daily: Spanish bonds decline…US jobless claims fall to new low…China inflation picks up

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Financial MarketsSpanish government bonds declined on Thursday, with the benchmark 10-year yield climbing 9 basis points to 4.19% after reaching 4.21% earlier, after the country’s new debt auction saw somewhat weaker-than-expected demand. Spain sold €4.57 billion of 3-, 5-, and 13-year bonds today, with the bid-to-cover ratio (proxy for investor’s demand for a bond auction) dropping considerably from the previous auctions.

Prospects Daily: Equities reach new highs…German IP momentum builds…China returns to trade surplus

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Financial MarketsGlobal stock markets continued to advance on Wednesday, with European and Japanese shares rising to five-year highs, on the back of robust China trade data and unexpected rise in Germany’s March industrial production. Developing-country’s shares also rose, with the benchmark MSCI index rising to a two-month high. Meanwhile, U.S. equities opened slightly lower amid profit-taking among investors after a four-day rally which took both S&P and Dow indexes to fresh highs on Tuesday.

Prospects Daily: Global equities advance… German factory orders up…Russian inflation picks up.

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Financial Markets…Global equities extended their gains, with the benchmark MSCI global stock index nearing its June 2008 highs, as European and Japanese shares rallied. U.S. equities are also expected to open higher after the S&P 500 index set another record high yesterday on the back of financial stocks rally.

World Bank published latest commodity prices: May 2013

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In April of 2013, the US dollar price of energy commodities dropped by 2.9%, while the US dollar price of non-energy commodities fell by 3.1%.  Food prices are down by 3.7%, beverages increased by 1.1%, raw materials declined by 1.5%, metals dropped by 4.2% while precious metals plunged by 7.7%.

To access recent and long-term historical prices and other commodity-related information, please click here

Prospects Daily: Malaysia's stocks up following elections, Eurozone retail sales up in Q1, Developing countries service sector PMIs decline

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Financial Markets… The yen weakened versus the dollar for a third day, sliding 0.3% to 99.26 per dollar, as robust U.S. job data fueled optimism that the world largest economy is improving. Japanese currency fell 0.2% against the euro to 130.10. The yen has plunged since the Bank of Japan pledged unprecedented stimulus of $1.4 trillion.

Prospects Daily: Philippines receives investment grade rating, US labor market improves, India’s central bank cuts rates

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Financial Markets…U.S. Treasuries continued to weaken, with the benchmark 10-year bond yield climbing 7 basis points to 1.7%, after strong U.S. jobs data in April boosted growth prospect and limited demand for safe-haven assets. In contrast, U.S. equities and the dollar strengthened following the April nonfarm payrolls report.

Prospects Daily: Chinese Yuan rises to 19 year high, Eurozone and developing countries’ manufacturing PMIs drop

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Financial Markets… The Euro and European shares rose slightly after the European Central Bank (ECB) cut its benchmark interest rate to a fresh record low of 0.5%. The single currency gained for a fifth day versus the dollar, climbing 0.1% to $1.3198 in afternoon trading in London, while it rose 0.7% to 129.28 yen. The Stoxx Europe 600 stock index strengthened 0.3%, bouncing back from earlier loss in morning trade.