Morning Report 5/29/12

Posted on May 29, 2012 by Brent Nyitray

Vital Statistics:

  Last Change Percent
S&P Futures  1322.0 7.0 0.53%
Eurostoxx Index 2147.7 -0.3 -0.01%
Oil (WTI) 91.13 0.3 0.30%
LIBOR 0.467 0.000 0.00%
US Dollar Index (DXY) 82.27 -0.131 -0.16%
10 Year Govt Bond Yield 1.72% -0.02%  
RPX Composite Real Estate Index 177.4 0.3  

Markets are higher this morning on hopes of stimulus in China. Spain is working on a rescue plan for Bankia, its 3rd largest lender. Spanish banking woes have pushed their sovereign debt to around 6.5%, close to the highs of last November. While Greek and Spanish fears are pushing sovereign yields higher, we have not seen a corresponding rise in EURIBOR / OIS, which is a signal that the banking system in Europe is taking a sanguine view, at least for now.  Meanwhile, Treasuries and bonds are higher, with the 10 year bond now at 1.73%

 

The S&P Case-Schiller index posted a slight sequential gain in March, but was still down 3% YOY, and made a new post-crisis low. Nationwide, house prices on average are back at their mid-2002 levels. That said, the pace of the decline has definitely slowed.

 

Chart:  Case-Schiller

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