Consumer borrowing in the U.S. unexpectedly decreased in July by $3.28 billion (estimated $9.2 billion increase) for the first time in nearly a year, after an $11.8 billion jump the previous month. The drop in credit-card borrowing coincides with a slowdown in hiring and rise in consumer pessimism. Revolving credit, which includes credit cards, decreased by $4.82 billion, a third decline in four months through July. This has not happened since early 2011, and reflects the slowdown in hiring and decline in factory activity growth.
Equities:
DJIA: 13,254 (-0.39%)
S&P500: 1,429 (-0.61%)
Nasdaq: 3,104 (-1.03%)
EuroStoxx: -0.40%
Nikkei: -0.03%
Hang Seng: 0.13%
U.S. stock indexes fell for the first time in four days as Greece struggled to qualify for aid. Intel lost 3.8% on Nomura stating that earnings may fall, and International Paper falls 4.2% on Deutrshe Bank cutting its rating to hold from buy, citing price increases as unlikely.
Microsoft to increase its quarterly dividend by 15% as its cash position grows.
Credit:
iBoxx IG: 119.92 (-0.0%)
iBoxx HY: 92.39 (-0.2%)
States Street Corp is beating its larger rival Blackrock, with the SDPR Barclays HY Bond ETF returning 9.6% this year, 1.2% more than BlackRock’s iShares iBoxx HY Corporate Bond Fund. 15.23% of State Street’s ETF carry CCC grades, 2.73% more than BlackRock’s ETF. State Street stands to lose more value if credit quality deteriorates or treasuries rise.
Commodities:
WTI Crude: 96.54 (+0.12%)
Nat Gas: +5.89%
Copper: +2.62% Rises on speculation policy makers will work to support growth
Corn: -2.03%
FX:
EURUSD: 1.276 (-0.01%)
DXY Dollar Index: 80.4 (+0.21%)
Rates:
U.S. 10y: 2.81% (-1bp)
German 10y: 1.55% (+3bp)
Spanish 10y: 5.67% (+7bp)
Italian 10y: 5.17% (+13bp)
