12th
August 2010
Daily Markets Wrap Up
Tuesday, August 10th, 2010
Global
Markets
• Confidence
among U.S. small businesses fell in July to
the lowest level in four months, led by declining
expectations for economic growth, a private
survey found.
• Inflation
in Germany, Europe’s largest economy,
accelerated in July led by higher energy costs.
The inflation rate, calculated using a harmonized
European Union method, rose to 1.2 percent from
0.8 percent in June.
• French
industrial production fell more than economists
forecast in June amid a decline in car production
as the government phases out purchase incentives.
• China’s
trade surplus reached an 18-month high as exports
rose to a record and import gains slowed, adding
pressure on officials to allow faster appreciation
of the yuan.
• China’s
property prices rose at the slowest pace in
six months in July as the government cracked
down on speculation to prevent asset bubbles.
• Bank
of America, hit by last month’s disclosure
of a potential $10 billion charge tied to new
regulations, may add $13 billion to its book
value when it posts gains from a Chinese bank
stake for the first time in October.
• U.S.
Treasury 10 year note yields hovered near a
15 month low (2.83%) before a Federal Reserve
statement that will signal whether the economy
needs additional stimulus. Some investors have
speculated that the Fed is moving towards another
round of debt purchases after reports cast doubt
on the economy’s ability to recover. The
central bank bought $300 billion of Treasuries
from March to October 2009 to bring down borrowing
costs.
Figure
1: NFIB small business optimism index edges
lower
Source:
NFIB, Haver Analytics
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