The Daily Shot - 7/29/14

From: "The Daily Shot" <thedailyshotletter@xxxxxxxxx>
To: <thedailyshot@xxxxxxxxxxxxx>
Date: Tue, 29 Jul 2014 23:43:38 -0400

Greetings,

 

The impact of EU/US sanctions on Russia was clearly visible in the markets
today. Energy services and equipment firms quickly came under pressure. 

 

Baker Hughes shares (blue) vs S&P500 (red)



 

These sanctions will be particularly painful for the EU, shaving some 0.3%
from the GDP in 2014 and 0.4% in 2015. Eurozone bonds rallied in response
with yields hitting new lows (many touching all-time lows). 

 





 

At least superficially, the Eurozone is increasingly looking like Japan. 

  _____  

 

All this geopolitical uncertainty is starting to impact US consumer
confidence. While the monthly sentiment data has consumer confidence at
post-recession highs, a weekly survey showed a sharp dip.

 



  _____  

 

Scotiabank sent out another warning that the buying of treasury notes and
bonds (excl. bills) has been dominated by the Fed. When QE ends treasuries
my become more vulnerable to a selloff. For now the market is ignoring all
this.

 

"RoW" = Rest of World, "All others" = households, dealers, pensions, etc.



  _____  

 

Tech firms increasingly use bond financing, as the market can't get enough
corporate paper. Global tech bond issuance hit a new record.



Source: Dealogic

  _____  

 

Here is today's food for thought: the latest projections on key entitlement
funds in the US .

 



  _____  

 

Thanks for reading the Daily Shot. To subscribe or unsubscribe, please enter
your e-mail address here:  <//www.freelists.org/list/thedailyshot>
Subscribe/Unsubscribe to the Daily Shot and select the appropriate command.
E-mail addresses are NEVER shared with anyone.

The Daily Shot - 7/29/14

Other related posts: