Financial Market report for June 19, 2012
World Stocks, VT, rose, and the US Dollar, $USD, UUP, fell sharply as the Brazilian Real, BZF, and the Euro, FXE, rose strongly, as Zero Hedge Tweets Goldman Sachs tumors that QE 3 is on the way.
European Financials, EUFN, and the Too Big To Fail Banks, RWW, lead growth assets, SLX, and risk assets, COPX, higher. Greece, GREK, Argentina, ARGT, Italy, EWI, Spain, EWP, and the BRICS, EEB, rose strongly. High Beta Financial Shares, such as BAC, C, JPM, JPM, and LAZ, jumped higher.
US Infrastructure, PKB, rose, as Cement Manufacturers, EXP, and Building Materials, OC, NX, and Construction Services, MTRX, CBI, and Business Services, HMSY, WXS, LPSN, ABCO, TIS, TSS, TEAM, FISV, INWK, and Trucking Companies, CNW, SAIA, PATR, and Railroads, UNP, RAIL, RA, and Vehicle Part Manufacturers, seen in this Finviz Screener, and Farm And Agricultural Equipment, seen in this Finviz Screener, and Chemical Manufacturers, seen in this Finviz Screener, and Biotechnology Stocks, seen in this Finviz Screener, rose, taking US Stocks, VTI, higher.
CNBC reports Oracle’s (ORCL) shares surge on better than expected results. Oracle posted better-than-expected quarterly revenue and authorized an extra $10 billion in share buybacks after a 7 percent jump in sales of new software licenses, helping drive shares higher.
Gold mining stocks, GDX, rose to the top of a descending channel and silver mining stocks, SIL, rose to resistance.
Commodities, DBC, rose as agricultural commodities, RJA, blasted higher breaking out from being greatly oversold, ana as Timber, CUT, jumped higher, which took paper products, WOOD, seen in this Finviz Screener higher, these included NP, and IP.
In Today’s News
Yahoo reports Four-day wipe-out in VIX ETFs as fear recedes.
Daniela Pylypczak of ETFdb reports U.S. housing starts fell 4.8% in the month of May, significantly lower than the 720,000 economists were predicting. Despite the slowdown, construction in April was revised higher, marking the fastest rate since 2008. U.S. permits, however, surged well above expectations, rising 7.9% compared to the predicted 1.0% increase.
CNBC reports Weak jobs market hits homebuilder confidence. A stall in job growth hit home builder confidence in June. A monthly confidence index from the National Association of Home Builders saw just a one point gain after posting a 4 point spike in May. The survey now sits at 29, with 50 the line between positive and negative sentiment. “While the June HMI is in keeping with our forecast for gradually improving single-family home sales this year, recent economic reports have shown some weakening in the pace of recovery likely factored into the marginal gain,” said NAHB chief economist David Crowe in a written release. “In addition, builders across the country continue to report that overly tight lending conditions and inaccurate appraisals are major obstacles to completing sales at this time
Zero Hedge reports Another surprising conversation with “Athens”
Bloomberg reports California’s bad bet makes JP Morgan’s look minor
Bloomberg reports India: steady interest rates, rising inflation
Automatic Earth asks Which side are you on?
Daily Reckoning reports Ideas on the US empire
Open Europe reports Spain calls for ECB intervention as borrowing costs stay at unsustainable levels; RBS; Spain will need a bailout of at least €300bn. Spanish Treasury Minister Cristóbal Montoro told the Senate yesterday that the ECB should act “firmly and with reliability” to stop the rise of eurozone peripheral countries’ borrowing costs. In an auction this morning, Spain had to pay interest rates above 5% on its twelve and 18-month debt, reports Expansión. The interest rate on ten-year bonds remains above 7% – a level widely deemed as unsustainable. City AM quotes RBS’s Alberto Gallo saying that Spain is expected to ask for a full bailout, which could be of at least €300bn. Separately, El País notes that Spain’s ruling Partido Popular and opposition Socialist Party have agreed to ratify the fiscal treaty on Thursday, ahead of a meeting of eurozone finance ministers. El País El País 2 El País 3 Expansión Expansión 2 Expansión 3 Expansión 4 Welt Independent Telegraph Telegraph 2 Guardian Le Figaro El Mundo WSJ City AM
Open Europe also reports German Constitutional Court rules Bundestag had not been sufficiently informed over ESM. The German Constitutional Court has this morning ruled that the government had not sufficiently informed or consulted parliament over the ESM – the eurozone’s new permanent bailout fund – and also the ‘Euro-Plus-Pact’. According to the verdict, the government will in future be obliged to inform the Bundestag about EU-related international treaties “at the earliest possible opportunity”. Separately, the Irish High Court will today begin proceedings in a constitutional challenge of the ESM brought by Independent MP Thomas Pringle who is seeking a referendum on the ESM Treaty as well as on the EU Treaty change enabling the ESM to come into existence. Süddeutsche Welt FAZ NewsTalk Irish Independent: Arnold
The Unification Of The Euro zone Will Be The Defining Movement And Moment Of Our Time
No country is getting out of the Euro, as there is coming a debt default, resulting in a global credit bust and financial system breakdown, as foretold in bible prophecy of Revelation 13:1-4, which will create a political union, a monetary union, a fiscal union, and a banking union, most likely in that order, as diktat will rise to replace both money and credit, as communicated in bible prophecy of Revelation 13:1-4, where the beast regime of Neoauthoritarianism rises to replace the banker regime of Neoliberalism, and as foretold in Daniel 2:30-33. Germany will rise to be preeminent in a type of revived Roman empire, where the PIIIGS exist as subservient client states to leaders in Berlin, Paris, and Brussels; these EU periphery countries are no longer sovereign nation states as they have lost their debt sovereignty, and currently receive seigniorage, that is moneyness through ECB facilities. Leaders will soon meet in summits to waive national sovereignty and pool sovereignty regionally, to effect regional security, stability and sustainability. New sovereign authority, such as public private partnerships, and a Eurozone Finance Minister, will provide the credit of diktat, for economic production and ongoing government operations, as the First Horseman of the Apocalypse, the Rider on the White Horse, with a bow, but without any arrows passes the baton of sovereignty from nation states to sovereign bodies, as is seen in Revelation 6:1-2. All so that the Kingdom of Jesus The Christ come to fruition, Revelation 2:26-28. This will occur simultaneously with a global Eurasia war centered in Syria, Iran, Israel and Turkey as communicated in Ezekiel 38, as Donna Cassata of the AP reports U.S. plans significant military presence in Kuwait.