Archive For "June, 2010"

The dollar is under pressure on Wednesday, as U.S. stocks were mostly higher amid mixed news about European banks, credit ratings and U.S. economic data.

NEW YORK (MarketWatch) — Spanish government bonds remained in positive territory in late U.S. trading on Wednesday after Moody’s Investors Service said it may downgrade the Aaa sovereign ratings on Spain because of deteriorating economic conditions. Analysts noted that Standard & Poor’s and Fitch have already both stripped the country of its AAA ratings, and the bonds have traded more like lower-rated debt already. Yields on Spain’s 4% coupon bonds maturing in April 2020 yield 4.56%, down 3 basis points. Yields move inversely to prices and a basis point is 0.01%.

Charles Evans, president of the Chicago Fed, is “wary” of calls for further central-bank purchases of assets aimed at stimulating the economy. He also dismisses fears that the U.S. recovery is faltering.

NEW YORK (MarketWatch) — The euro remained higher against the dollar and Japanese yen on Wednesday after Moody’s Investors Service said it may downgrade the Aaa sovereign ratings on Spain because of deteriorating economic conditions. The euro rose to $1.2259, compared to $1.2206 in North American trade on Tuesday. Against the yen, the euro bought ¥108.59, compared to ¥107.99. The dollar index , a measure of the greenback against a trade-weighted basket of six major currencies, fell to 85.944 from 86.053 late Tuesday.

The dollar is under pressure on Wednesday, as U.S. stocks recover and the euro gains as weaker-than-expected demand for three-month loans from the European Central Bank tempered worries about the health of the euro-zone’s banking sector.

WASHINGTON (MarketWatch) — The oil spill in the Gulf of Mexico is not having a measurable effect on the national economy, but is likely retarding the recovery by holding back consumer and business confidence, said Dennis Lockhart, the president of the Atlanta Federal Reserve Bank on Wednesday. “The spill disheartens us all and, I believe, makes the public a little more reticent to assume a smooth recovery path,” Lockhart said in a speech in Baton Rouge, Louisiana. The Atlanta Fed district covers all of the states impacted by the spill.

NEW YORK (MarketWatch) — Campbell Soup Co. plans to sell $400 million in debt, expected to price on Wednesday, according to Informa Global Markets. Campbell said in a regulatory filing that the 7-year debt would be for general corporate purposes, possibly to repay commercial paper or “funding all or a portion of the purchase price of any acquisition we may pursue.” Informa said Wal-Mart Stores Inc. is planning to sell a three-part bond sale.

Despite the apparent deficit-cutting solidarity that emerged from this weekend’s G-20 meeting in Toronto, it is clear that the great powers of the industrialized world have not been this philosophically estranged since the end of the Cold War.

British house prices were relatively stable in June, edging up just 0.1% to complete a 3% rise for the first half of 2010, mortgage lender Nationwide said Wednesday. Also, U.K. GDP figures are to be delayed because of errors the statistics agency has discovered.

WASHINGTON (MarketWatch) — Manufacturing activity in the Chicago region slipped a bit in June but remained at relatively high levels, according to media reports of the purchasing managers’ index for the Chicago region released on Wednesday. The Chicago purchasing managers index fell to 59.1% from 59.7% in May. The drop is in line with forecasts. The report signals continued solid growth in the manufacturing sector. Readings over 50% indicate overall business expansion. The Chicago PMI is the last of a series of regional indicators that some economists say give clues to the national Institute for Supply Management manufacturers’ survey for June to be released on Thursday. Based on other regional readings, economists expect the June ISM manufacturing composite to slow a bit to 59.0 from a May reading of 59.7.