11^th January 2010

Equity Index

Overview

Last week the S&P 500 future achieved 5 positive days, posting new yearly highs in every session. On Friday a disappointing payrolls number could not dampen the bulls as the market retraced initial daily losses to rally aggressively into the close. There is no doubt now that as every day passes equities look more and more the place to have your money, but traditionally when a market looks at its most bullish the top is near, so is their still more to come? (more...)

8^th January 2010

Commodity Overview

Focus on Oil Futures

This week we have seen front month Oil prices push above 2009 highs, in doing so reaching $83.52, on Wednesday. Despite some recent USD strength the world equity markets have continued to rally and this has undoubtedly provided energy markets with support. (more...)

7^th January 2010

Macro Overview

A House Price bubble in China?

While the rest of the world is in awe of the Chinese economic recovery, there has been mounting concern in China, especially amongst its urban population, regarding the sky-rocketing prices of urban dwellings. The Chinese middle classes have become increasingly unnerved at becoming “mortgage slaves”, echoing the type of sentiment that was seen during the housing boom in the US. Year on year house prices have increased at an astonishing rate. Property prices in Shanghai are up 68% and Beijing up 66%. By proportioning it to real incomes, China is now the most expensive place in the world. (more...)

5^th January 2010

Bond Futures

Overview

Over the last five days we have seen government bonds on both sides of the Atlantic remain under pressure. The Bund gave up more ground sliding over 100 prices before consolidating around November lows. The US Ten Year has been hit more in recent trading with a very bearish contract role resulting in last week’s consolidation occurring around September lows (114.285). (more...)

4^th January 2010

Equity Index

Overview

Last week S&P 500 Futures had a four day week due to the Christmas break, despite this they still managed to post fresh yearly highs on Wednesday at 1128.50. After this strong start gains were given back and the market finished slightly down, closing at 1109.75. (more...)