Financial Markets Close

Published on September 17, 2012, 6:16 pm
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Manufacturing in the NY region shrank more than forecast in September, with the index dropping to -10.41 (signaling contraction) from -5.85 in August as orders shrank. The median forecast called for -2.

The ECB plans to boost oversight of trading in repos by setting up a transactions database on a push by regulators to control “shadow-banking.” These regulations target “key actors” in the shadow-banking system, particularly money market mutual funds, which have risks to their liquidity. These can be one of several shadow-banking activities used to evade the global clampdown on excessive risk-taking.

China-Japan tensions threatened a trade relationship worth $340 billion. Toyota, Honda, and Panasonic all reported damage to their operations in China as a result of boycotts and protestors damaging property. The China Automobile Dealers association stated that the protests will hurt Toyota, Honda, and Nissan more than the March 2011 Japanese earthquake.

Equities:
DJIA: 13,533 (-0.3%)
S&P500: 1,461 (-0.3%)
Nasdaq: 3,179 (-0.17%)
EuroStoxx: -0.42%
Nikkei: +1.83%
Hang Seng: +0.14%

Stocks down deadlock during euro-area debt crisis talks discussed below, and poor Empire Manufacturing numbers.

Apple stock surpassed $700/share in after hours trading as the first-day orders for the new iPhone sold 2 million units in the first-day orders, more than double the record set by the 4S. The stock has advanced 73% this year.

Time Warner Cable announces its plan to sell its 46.4 million shares of Clearwire Corp. Time Warner spent $550 million for its Clearwire stake in 2008 on hops to fund a WiMax network to offer 4G. The joint venture with Sprint has struggled to gain subscribers, prompting Comcast and Time Warner Cable to switch over to Verizon. The shares are worth $71.5 million today. Comcast still owns its 88.5 million shares in Clearwire. Clearwire stock dropped $0.08 to $1.54, and its 12% coupon bond maturing in 12/1/15 reached a 1 year high in price at 100.625.

Credit:
iBoxx IG: 120.11 (+0.3%)
iBoxx HY: 93.8 (-0.1%)
CDX IG S18 5Y: 85.23 (+2.7%)
CDX HY S18 5Y: 101.89 (-0.4%)

Commodities:
WTI Crude: 96.62 (-2.4%)
Nat Gas: -2.65%
Copper: -0.05%
Corn: -4.35%

FX:
EURUSD: 1.3116 (-0.01%)
DXY Dollar Index: 78.9 (+0.12%)

Rates:
U.S. 10y: 1.84% (-2bp)
German 10y: 1.67% (-3bp)
Spanish 10y: 5.94% (+19bp)
Italian 10y: 5.09% (+9bp)

Spanish yields jump on the September, 14, 2012 finance ministers meeting that deadlocked over a timetable for a more unified EU banking sector, with Germany pushing back against a more ambitious plan sought by France, Spain, and Italy. The finance ministers also bickered over the terms of the bailout request and the role of the ECB.

 

Jonas Bronck is the pseudonym under which we publish and manage the content and operations of The Bronx Daily.™ | Bronx.com - the largest daily news publication in the borough of "the" Bronx with over 1.5 million annual readers. Publishing under the alias Jonas Bronck is our humble way of paying tribute to the person, whose name lives on in the name of our beloved borough.