Recap 2-07-13

Commentary:

HY bond are at a price High:

http://blogs.cfainstitute.org/insideinvesting/2013/02/06/two-things-about-high-yield-bonds-investors-must-understand-today/

Notable:

  • Draghi:
  1. ECB will closely monitor conditions in the money market and their potential impact on the stance of monetary policy, which will remain accommodative with the full allotment mode of liquidity provision.
  2. We will continue to provide more liquidity should it be needed.
  3. On FX: we want to see if the appreciation is sustained, and if it alters our assessment of the risks to price stability

Marketwatch: Insiders now aggressively bearish. For the week that ended last Friday, this sell-to-buy ratio for NYSE-listed shares listed stood at 9.20-to-1. On average over the month following each prior occasion when the sell-to-buy ratio got this high, the broad market fell by 2.1%.

AAII: AAII members allocated 61.4% of their portfolios to stocks and stock funds last month, an increase of 2.8 percentage points. This is the highest equity allocations have been since July 2011.

US Unit Labor Costs rose 4.5% in 4Q vs 3.0% exp and -1.9% prev

US Jobless Claims increased to 366k vs 360k exp and 368k prev

Employment in Australia increased by 10.4k, above estimates of 6k. The unemployment rate remained unchanged at 5.4% versus 5.5% expected.

Upcoming Data:

  • Fri: Japan Eco Watchers Survey, German Trade Balance, Canadian Employment, USDA WADE reports
  • Mon: Japanese Money Supply, UK RICS House Price Balance, Australia Business Confidence,
  • Tue: UK CPI
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