Droll dissipation

[aussiebear]

An optimistic start for early openers in spite of US doing a holiday (or maybe because of): Kiwis +0.5%, Aussies +0.9%, Nikkers +1.2% and Sth Korea +1%.

 

In Aussie sectors, Telecomms +1.3%, Financials and Miners +1.1%, no red sectors at this stage.

 

 

 

 

[aussiebear]

 

 

 

 

 

 

 

http://finance.yahoo.com/intlindices?e=asia

[aussiebear]

http://money.cnn.com...s/morning_call/

 

 

 

 

 

 

 

http://www.kitco.com

 

 

 

http://www.kitconet....ase_metals.html

 

 

 

http://finance.yahoo.com/

[aussiebear]

 

 

T-shirt found in Tokyo.

[aussiebear]

 

 

All Ords action tailed off to close +0.5% with all sectors taking a haircut. Telecomms, the morning star, turned tail to finish -0.3% and was the only red sector. Miners and Materials, both +0.8% had the best gain.

 

Pretty good gains in Asia: China +1.6%, Honkers +1.8%, India +0.4% and Nikkers +1%.

 

 

On to UK/Europe:

 

 

 

 

 

 

 

 

[swordfish]

Fundamental Stock Market Indicator & Third Year of Presidential Cycle

 

 

 

We have been monitoring the performance of the S&P 500 this year, which is the third year of the Presidential Cycle, relative to the previous 15 comparable years of this political cycle. So far, it is most closely tracking the Harry Truman market of 1951. If it continues to do so, then the S&P 500 should be up to 1410 by the end of August and to 1465 by the end of the year. That would make it a gain of 16.5% for the year, slightly underperforming the average third-year gain of 18.3% since 1951.

http://blog.yardeni.com/2011/06/fundamental-stock-market-indicator_28.html

[Jimi]

S&P doesn't approve of the French plan for Greece:

The proposal by France’s banking federation would see private creditors invest a minimum of 70% of maturing Greek debt into new Greek 30-year bonds with a coupon of 5.5%. Greece would use half of the original amount to meet financing needs while reinvesting the remaining 20% in zero-coupon bonds that would be used as collateral for the additional loans. Read more about the French rollover proposal.

 

Alternatively, banks would have the option of reinvesting 90% of maturing bonds into new five-year bonds with a 5.5% coupon. German banks last week said they were willing to participate in some form of a rollover. French banks, followed by German institutions, have the largest foreign exposure to Greek government debt.

 

S&P said that under its criteria, a “debt exchange or similar restructuring” would be deemed an effective default if the transaction is viewed as “distressed rather than purely opportunistic” and if the measures result in investors receiving less value than the promise of the original securities.

 

If either proposal were implemented, it would likely lead to Greece being declared to be in “selective default,” the company said.

http://www.marketwatch.com/story/sp-warns-greek-debt-rollover-would-be-default-2011-07-04

[Jimi]

Same topic; different source:

The comments from S&P are the first considered reaction from a rating agency since details of a plan first put forward by French banks—the biggest overseas holders of Greek debt—emerged last week.

 

The European Central Bank has maintained that it won't accept bonds with a default rating as collateral. Hence, averting a selective default rating is crucial to ensure that banks holding Greek bonds aren't shut out from the ECB's liquidity operations for the few days that the country's bonds would be rated selective default.

 

Euro-zone finance ministers had stressed the need to avoid a selective default rating on the country's debt in any new bailout deal for Greece when they agreed to lend the country the next tranche of funds from last year's bailout.

 

Governments in the euro zone are considering ways to get Greece's private creditors to roll over their bonds even if credit-rating agencies determine that the process would set off a Greek default, two European government officials said last week.

 

"The S&P statement that the model would constitute a "selective default" will take banks and officials back to the drawing board," interest rate strategists at Commerzbank said.

http://online.wsj.com/article/SB10001424052702304760604576424961088825954.html?mod=WSJ_hp_LEFTWhatsNewsCollection

 

:lol:

 

"How's the 'hopey greasy' thing working out for ya?"

 

One of the few exceptions that Zeno acknowledged is a theoretical limit to can-kicking.