Gold And Silver Rise As Currency Traders Sell The Euro, Canadian Dollar, Australian Dollar, Swiss Franc, And The Swedish Krona, As Corporate Bond Interest Rates Rise Globally

Financial Market Report for November 30, 2010
I … A broad-based selling of currencies continued today
Willma L Watts and Myra P Saefong of Market Watch report fiscal sovereignty said to be the only remedy for the sovereign crisis: “The Euro remained under heavy selling pressure as the euro-zone debt crisis intensified, sending government bond yields soaring for Spain and other high-deficit countries on the periphery of the region.

The yield premium demanded by investors to hold Spanish 10-year government bonds over German bunds hit three full percentage points on Tuesday, the highest since the launch of the euro in 1999. Spanish, Italian and Portuguese bond yields jumped. Bond yields move in the opposite direction of price.

The ongoing turmoil comes after European Union officials on Sunday finalized a bailout package for Ireland and outlined a plan to replace the rescue fund put in place following last spring’s Greek bailout with a permanent mechanism that would potentially require private bond holders to take writedowns in the event of debt crises that take place after mid-2013.

The measures, however, failed to soothe markets.

“It is now becoming increasingly clear that the only options open for a final solution are to either adopt closer fiscal policies across all European countries, and with austerity fatigue already creeping in across European populations that looks unlikely, or for the single currency to somehow restructure itself in a manner that represents the differences between the respective stronger and weaker economies,” said Michael Hewson, an analyst at CMC Markets.”

The US Dollar, $USD, rose to 81.34 as currency traders sold the Euro, FXE, which fell 1.1% to close at 129.30.

II … World stocks, ACWI fell lower
Country stocks falling today included:
South Africa, EZA, -1.6%
European shares, VGK, -1.6%
Australia, EWA, -1.7%
Switzerland, EWL, -1.8%
Spain, EWP, -1.85
Poland, PLND, -2.3%
Philippines, EPHE, -2.0%
Italy, EWI, -2.5%
Austria, EWO, -2.7%
Indonesia, IDX, -3.0%
United Kingdon, EWU, -1.0%
New Zealand, ENZL, -0.9%
Malaysia, EWM, -0.95
Asia Excluding Japan, EPP, -0.95
Russia, RSX, -0.8%
Emerging Europe, ESR, -1.1%
Hedged Japan, DXJ, -1.2%
Japan, EWJ, -0.5%
China, FXI, -1.1%
New York Composite, NYC, -0.6%
S&P, SPY, -0.6%  
Russell 2000, IWM, -0.85
Emerging Markets, EEM, -0.8%
Stock groups falling today included:
Leveraged Buyouts, PSP, -1.5%
International Dividend Payers, DOO, -1.4%
Banks, KBE, -0.7%
Insurance, KIE,- 0.7
Mortgage REITS, REM, -0.5%
Capital Market Providers, KCE, -0.75
Global Financial Shares, IXG, -1.2%
European Financials, EUFN, -2.3%
Emerging Market Financials, EMFN, -0.6%
Nasdaq 100, QTEC, -1.2%
Nasdaq Internet, PNQI, -1.8%
Tata Motors, TTM, -5.5%
National Health Investors, NHI, -3.5%  On fears that the President’s Commission on debt will cut medicare and medicaid to the elderly
Financial stocks falling across the board included:
Mortgage Finance Company, iStar Financial, SFI, -3.45
Bank of America, BAC, -3.2%
Lazard, LAZ, -2.15
Nelnet, NNI, -1.8%
Nicholas Financial, NICK, -1.4%
EZ Corp, EZPW, -1.0%
Nuclear Energy, NLR,  -1.0%
Disk Drive Manufacturers Seagate, STX, -3.3% …. Quantum, QTM, -3.0% … Western Digital, WDX, -.6%
Nano Technology, PXN,  -1.5%
Internet, HHH, -2.4%
Dow Jones Internet, FDN, -1.5%
Semiconductors, XSD, -1.1%
Intel, INTC, -0.8%
Biotechnology, PBE, -1.1%
Software Holders, SWH, -1.0%
Real Estate: Starwood Property Trust, STWD, -0.9%
Real Estate: Blackstone Group, BX, -1.8%
Real Estate: Brookfield Properties, BPO, -1.7%
Small Cap Consumer Discretionary, XLYS, -0.6%
Copper Miners, COPX, -0.95 and International Basic Materials, DBN, -0.9% on lower commodity prices and unwinding carry trade investments on China money tightening. China Financials, CHIX, -1.0%. Needless to say risk acceptance has turned to risk avoidance.

III … Commodities, DBC, fell lower on the accumulated sell off of the world currencies, debt deflation has come to commodities.
Timber, CUT,  -1.1%
Oil, USO, -2.0%

IV … Bonds fell lower on rising credit default swaps globally on all types of debt.
Aggregate Bons, AGG, -0.075

International corporate bonds, PICB, continued to sell off, falling 0.36%.

V … Volatility rose
Inverse Volatility, XXV, fell.

S&P Mid Term Futures Volatility, VXZ, rose confirming my report of yesterday that it is an Elliott Wave 3 up.

VI … Precious metal prices, JPP, rose 2.0%
Gold, GLD, and silver, SLV, broke out of consolidation triangles on sovereign crisis concerns. These precious metals are now established as the world’s sovereign currencies as the currency traders conduct their on going global currency war of competitive currency deflation with the world bankers for the right to be sovereign over the world’s currencies, resources and peoples.
Gold, GLD,

Silver, SLV

Gold in terms of Australian Dollars, FXA, rose strongly higher proving an investment demand for gold in a stock, bond and commodity deflationary bear market.   

Clearly quantitative easing and the pursuit of a common currency has destroyed fiat money. Those in possession of gold bullion have increasing money and those invested in fiat wealth have decreasing money.

VII … In today’s news
Keiko Ujikane and Aki Ito of Bloomberg report Japan Unemployment Rises, Output Falls, Showing Risk Economy May Contract

Eric Fry reports The Long And Short of Treasury Bond Yields

Les Echos reports: The French government is preparing a plan to cut subsidies for solar energy. French Prime Minister Francois Fillon will meet ministers in two days to discuss a possible lowering by about 10% in the price paid by Electricite de France SA for solar power and a cap on the annual volume of installations


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