G3 Recap 12-22-10

Main Items:

  • ABC Consumer Confidence improved to -41 last week, the best print since this summer:

  • A single trader has reported it owns 80% to 90% of the copper sitting in London Metal Exchange warehouses, equal to about half of the world’s exchange-registered copper stockpile and worth about $3 billion. One trader holds as much as 90% of the exchange’s aluminum stocks. In the nickel, zinc and aluminum alloy markets, single traders own between 50% to 80% of those metals and one firm has 40% to 50% of the LME’s tin stockpiles. – WSJ.
  • US MBA Refi index dropped 25% last week and is now down 57% from peak October levels, as the current coupon is higher by 97bps, to 4.18%.
  • US 3Q GDP was revised to +2.6% vs 2.8% expected and 2.5% previously, as consumption was revised lower.
  • The IMF said that it has finished its planned sale of 13% of its gold reserves. It has sold 403.3 metric tons (14.2mm ounces) since Sept 2009 BBG
  • US Muni bond issuance reached an all time high of 424.8bn in 2010. Reuters

Overseas:

  • The ECB’s 3m LTRO drew bids for 149.5bn from 270 banks, representing ~75% of the 201bn maturing tomorrow. The demand was stronger than expected and drove EONIA sharply lower following the publication of the results.
  • Italian Consumer Confidence Indicator improved to 109.1 in Dec vs 108.3 expected and 108.5 previously

Commentary:

  • This is the last recap for 2010. Happy holidays!
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5 thoughts on “G3 Recap 12-22-10

  1. Happy Holidays and many thanks for all your insights , analysis and views expressed in your daily blog news headlines and comments.
    Greatly appreciated here and hope sincerely you continue into 2011. Best wishes for the New Year.

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