Rising inflation concerns and the prospect for higher central bank interest rates sent most Asian markets sharply lower. The Shanghai index fell 1.7%, the Indian Sensex fell 2.4% to an 8 week low as their 10 yr yield rose to the highest since Oct ’08, Indonesia’s market fell 4.2% to a 15 week low, Thailand fell 2.1% and the Philippines index was lower by 2.1%. Reports over the weekend that Germany and France are asking Portugal to take bailout money was denied but Portuguese CDS is rising to a record high as they are also in Ireland and Belgium and Italy’s is just 10 bps from a record. ECB buying of Irish and Portuguese debt helped to reverse early morning losses in them. Portugal, Italy and Spain this week come to market with key bond sales and Portugal specifically admitted they can’t handle 7% funding costs for long (7.04% yield today) and their stock market is falling to the lowest since Aug. The Euro is falling to a 4 month low vs the US$.
Rising rates hinder equity gains in both Asia and Europe
January 10, 2011 9:37am by
This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/
Posted Under
UncategorizedPrevious Post
Checklist for PunditsNext Post
Greenspan: ‘Prove I Was Wrong’