Home > Uncategorized > 2012/01/17: Quick Post: Observations and Weekly Reports & Events Calendar Now Available

2012/01/17: Quick Post: Observations and Weekly Reports & Events Calendar Now Available

© 2012 ROHR International, Inc. All International rights reserved.

The full calendar is available through the link in the right hand column. From this week forward we will be adding color-coding to the various reports and events to indicate the nature of the key influences. We will also be italicizing those reports and events which we add to the base table from other resources. That will assist with differentiating which bold font items are highlighted because of their importance, versus those that simply come from other sources.

This is another important data release week, yet is less crowded and critical than some of the intense reporting last week even if the upbeat Chinese data has already been influential. Yet, continued sharp influences from any developments on the European Sovereign Debt Crisis will remain a major key even if the equities seem to be ignoring the recent sovereign debt downgrades for now (with more on that soon.) Thursday is a very key auction horizon once again this week as well.

The economic data has already begun as last week: mixed to strong, and it seems especially important the Australian, European and US numbers were also above expectations in the wake of the good numbers out of China. As far as further data throughout the week, while there are some interesting other reports it all comes down to a very crowded economic release schedule on Friday. That includes the Chinese MNI January Flash Business Sentiment, Italian Industrial Orders, UK Retail Sales and US Existing Home Sales. Another interesting week.

And among the more interesting events that will not occur on Friday is the seemingly significantly postponed meeting between Chancellor Merkel, President Sarkozy and Italian President Monti. (More on that soon as well.) As best as we can tell from press reports, that meeting will now not take place until the end of NEXT month!!

If that is true, it is yet another instance of the bombastic, bi-polar nature of the leadership in Europe right now. Chancellor Merkel and President Sarkozy attempted to defray criticism of Europe last week by asserting the full EU Treaty revisions would be done by the end of this month. That’s going to be pretty hard if they are not even meeting with Mr. Monti until the end of February. It is not too radical to note the vacillations are almost as troubling as the lack of real progress.

General Market Observations and EXTENDED TREND IMPLICATIONS

The economic data so far this week is constructive everywhere from China’s better-than-expected numbers this morning through Europe into the US. As such, the equities are benefiting quite a bit in spite of the still fraught general European Sovereign Debt Crisis situation, and Greece in particular. The latter reaches a hard deadline around the end of this week for any public sector involvement (PSI) in the debt deal necessary to facilitate the next tranche of funds to prevent a Greek bond default on March 20th.

The upbeat economic data is also putting a bit of pressure on the US dollar and primary government bond markets, yet not too any trend altering effect yet. Adding to the somewhat perverse “it’s all going up together” psychology right now is strength of Gold and Crude Oil, which would not normally accompany the combined overall up trends in equities, govvies and the US dollar.

Thanks for your interest.

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