Obama Signs FinReg: ‘No More Bailouts’

President Obama signed the financial reform bill into law today, issuing a strong, though not especially credible statement regarding future bailouts: “There will be no more taxpayer-funded bailouts. Period.” Perhaps President Obama needs to be reminded of the ongoing bailouts of Fannie Mae and Freddie Mac, which have already cost US taxpayers $145 billion. Indeed,… Continue Reading

Stress Tests May Add to Swiss Bank Intervention Losses

The Swiss National Bank’s intervention efforts aimed at weakening the franc relative to the euro has resulted in $13.3 billion dollars in losses. However, the real pain may still await the central bank ahead of the eurozone’s stress test results slated for Friday release. Unlike other central banks, the SNB issues shares and is publicly… Continue Reading

Merrill Lynch: USD/JPY to Test 14-Year Low

The US dollar may trade at a 14-year low against the Japanese yen, as diverging monetary policies between the Federal Reserve and the Bank of Japan take hold, according to Bank of America Merrill Lynch. The Fed may take additional easing steps in its monetary policy decisions, owing to a US economy that has, in… Continue Reading

Gold Prices Surge From Early Lows

Gold contracts have surged off their session lows, as traders look for a partial hedge amid aversion to risk. Gold is last priced at $1,191.25 per ounce, gaining more than $15 from the session lows near $1,175.

Equities Markets Remain Off Session Lows

Despite earnings misses by Goldman Sachs, Texas Instruments and IBM, equities markets remain well off their session lows, though still lower across the board. The Dow and Nasdaq are each lower by over 0.70% while the S&P 500 is lower by 0.50%.

RBS: Euro Peaking Amid ‘Fragile Confidence’

Royal Bank of Scotland warns that the euro is nearing its peak, as “fragile market confidence” remains at the fore. Greg Gibbs, a currency strategist at the firm, notes that “confidence will take a hit if European economic growth begins to fade. It is hard to see confidence in European debt markets improving further from… Continue Reading

Crude Oil Tests Resistance on Summer Demand Bet

Crude oil is rising for the second consecutive day, as traders bet that summer demand will outpace expectations. Crude oil contracts for August delivery are last trading at $77.35 per barrel, gaining just over 1% over yesterday’s settlement. The energy contract has been tracking risk appetite very closely in trading today, operating in lockstep with… Continue Reading

Goldman Sachs Posts Huge Earnings Miss

Further evidence of weakness among global banks came in the form of a huge earnings disappointment issued by Goldman Sachs (NYSE: GS) earlier today. Goldman’s earnings missed analyst expectations by a wide margin, reporting an anemic $0.78 EPS compared to the already depressed $1.99 EPS that analysts were expecting. Even taking into account one time… Continue Reading

BNP Paribas: USD/JPY Heading to 84.95

The US dollar may trade at an eight-month low against the Japanese yen, as concerns of a faltering US economy mount, according to BNP Paribas. Hans-Guenter Redeker, head of global currency strategy at the firm, notes that Japan has been pulling money out of the Treasury market at the fastest pace in two years, as… Continue Reading

Bank Stress Tests a ‘Lose-Lose’ for Euro

The euro will fall against all currencies ahead of the “lose-lose situation” that the bank stress tests in the eurozone create, according to High Frequency Economics. Carl Weinberg, chief economist at the firm, argues that “if any banks fail, the market reaction will be bloody. If no banks fail, the market will sour because no… Continue Reading