Sunday, April 26, 2015

MONDAY 4/27/15; SCCO; PMI Services; AAPL; BXP; PCL; RCII; SWFT; SPX All-Time Record High; COMPQ 15-Year Record High; Baltimore in Chaos

Asian indexes are set to begin a new week of trading. At 9:05 AM Sydney, Australia time (7:05 AM Shanghai, China and Hong Kong, Hong Kong time; 8:05 AM Tokyo, Japan time; 7:05 PM EST Sunday evening in the United States), the Aussie and Japan futures are set for a higher open following the Friday euphoria in the States. Australia, Japan and South Korea stock markets begin trading in one hour (10 AM Sydney time and 9 AM Tokyo and Seoul, South Korea time).

US futures are a touch above the flat line. S&P +1. Dow +6. Nasdaq +5. The tech joy from Friday calms. Euro 1.0865. Dollar/yen 118.90. USD 96.95. Pound 1.5175 (sterling was under 1.50 last Thursday morning). Aussie dollar 0.7824.

WTIC oil 57.21. Brent oil 65.44. Natural gas 2.48. Gold 1179. Silver 15.75. Copper is down -0.3% to 2.7445.

US Treasury yields are; 2-year 0.50%, 5-year 1.31%, 10-year 1.91%, 30-year 2.61%. The 2-10 spread is 141 bips.

DB Q1 profit is cut in one-half as legal charges hamper the bank. Deutsche Bank plans a strategic overhaul of operations. The power struggle at Volkswagen ends with long-time chairman Ferdinand Piech, and his wife Ursula a board member, resigning. Martin Winterkorn wins the battle and will take over control of VW Europe’s largest car manufacturer.

Tremors and aftershocks continue in Nepal with the death count increasing to 2500. The monetary cost of the major quake will likely total about one-third of the poor country’s GDP. 80% of the houses in the area of the quake in and around Kathmandu are leveled. World nations are providing aid and rescue and recovery support.

The SPASX200 begins trading up +0.4%. Aussie dollar 0.7834. The NIKK begins trading flat. Dollar/yen 118.83. The KOSPI is up +0.3%. The Korean Won is at 1076.43 with a six-week rally in play.

Asian indexes end the session with Australian stocks at seven-year highs. The SPASX200 gains +0.8% to 5983. Iron ore prices jump +5% printing at $57 per tonne a six-week high. Fortescue Metals catapults over +16% higher. Rio Tinto is up over +3% and BHP Billiton gains nearly +2%. The NIKK finishes marginally lower down -0.2% dropping under 20K to 19983. KOSPI -0.1%.

Chinese stocks continue the parabolic move higher as traders expect more stimulus from the PBOC. The SSEC gains +3.1% printing seven-year highs day after day. The HSI gains +1.3% to 28434 the highest print since late 2007. Chinese and Hong Kong traders, including dishwashers, housewives and taxi drivers, are taking their life savings and investing in the stock market regardless of price since they do not want to miss out on the huge increases day after day. The PBOC is creating the same distorted markets as the Fed, BOJ, ECB and other central bankers create in their markets. The Jakarta Composite drops -3.4% due to weak earnings releases.

Boko Haram Islamist radicals are attacking the Niger Island Army complex at Lake Chad over the last two days. Boko Haram continues to expand the Islamist caliphate across northern Africa. Cyber criminals take over TSLA’s and CEO Elon Musk’s TWTR accounts posting erroneous messages including an offer for free Tesla cars. The disruptions continue as Twitter engineers work to resolve the problem.

European indexes jump higher out of the gate but the joy is short-lived with stocks reversing course and turning negative during the first one-half hour of trading. At 3:38 AM EST, the DAX is down -0.4%. FTSE -0.5%. IBEX -0.9%. MIB -1%. CAC -1.2%. US futures retreat from the overnight highs. S&P -1. Dow -9. Nasdaq +4. AAPL is up +1.1% in Frankfurt trading ahead of the earnings release today boosting the Nasdaq futures. Euro 1.0875. Dollar/yen 119.17. The pound is 1.5173 at a seven-week high. The Aussie dollar is 0.7820 remaining buoyant with the higher iron ore prices.

WTIC oil 57.00. Brent oil 65.18. Natural gas 2.48. Gold 1183. Silver 15.84. Copper is up +0.3% to 2.76.

US Treasury yields are: 2-year 0.52%, 5-year 1.32%, 10-year 1.91%, 30-year 2.60%. The 2-10 spread is 139 basis points. German bund 0.14%. Italy 10-year yield 1.477%. Spain 10-year yield 1.437%. UK 10-year yield 1.648%.

The UK election is only 10 days 




















[Text is Redacted: Purchase April 2015-04 to Read the Complete Chronology]




























Baltimore burns. There are fires and rampant looting occurring all night long. People complain about mistreatment by police for years and the death of the man in police custody is the straw that broke the camel’s back. Three people are shot in Brooklyn, New York, and fears grow that the violence is spreading to other American cities. Social unrest is on the rise in the United States. The Federal Reserve has rewarded the rich over the last six years with their easy money policies while ignoring the middle class and poor and now the lower social classes are fighting back against the establishment.

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