Asian stocks powered higher overnight, especially in Taiwan which rose
almost 7% after their govt said they will allow China to invest in their
mfr’g co’s. Japan rose about 4% after March IP rose twice what was
expected. The rally spilled over into Europe after some good earnings
reports and UK consumer confidence rose to a one year high. Germany’s
April unemployment rate rose to the highest since Dec ’07 but the # of
unemployed rose less than expected. With the S&P futures following the
rise, global bond markets are trading lower and specifically the 10 yr
bond yield is rising above 3.10%, the highest since Nov 25th. The
question for the US economy and the equity market is at what level does
the rise in yields begin to hurt and snuf out any hope of recovery since
higher interest rates are kryptonite to an overleveraged economy. It
also highlights the risk the FOMC has taken by their decision to pick a
fight with the bond market.
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Although the information contained herein has been obtained from sources
Miller Tabak + Co., LLC believes to be reliable, its accuracy and
completeness cannot be guaranteed. This report is for informational
purposes only and under no circumstances is it to be construed as an
offer to sell, or a solicitation to buy, any security. At various times
we may have positions in and effect transactions in securities referred
to herein. Any recommendation contained in this report may not be
appropriate for all investors. Trading options is not suitable for all
investors and involves risk of loss. Although the information contained
in the subject report (not including disclosures contained herein) has
been obtained from sources we believe to be reliable, the accuracy and
completeness of such information and the opinions expressed herein
cannot be guaranteed. An options disclosure document may be obtained
from Mr. Jay Stenberg, Miller Tabak + Co., LLC., 331 Madison Avenue, New
York, NY 10017. Additional information is available upon request.
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