What silliness in the Global markets this morning.
The Hang Seng opened up nicely at 22,206 and fell 250 points to 21,952 just after lunch and came back to 22,062 – essentially flat for the day. The Shanghai Composite opened flat at 2,760, also fell 1% by lunch to 2,736 and then rallied back to flat for the day. The Nikkei, on the other hand – gapped so far up at the open (100 points) that even the all-day sell off left them up 70 points for the day at 9,648. India, on the other other hand (and they have Gods with many hands so it’s OK), was pretty flat but they are up 5% for the week so all seems well over there.
Europe is mixed (up) as well with the CAC and FTSE up about half a point but down from being up a full point in early trading, while the DAX opened at 7,167 and now failed to hold 7,100 and are down 0.2% at 7,093 (7:30 am). What is Germany’s problem? German consumer confidence is still high and the economic expectations index is up to 50.3, up from 46.1 in May – maybe too much as there’s simply no reason for Germany to maintain an easy-money policy and, of course, it’s their bailout money the rest of the EU is counting on
"The pace of activity is set to moderate in the coming quarters but today’s survey shows some resilience for consumer spending," the GfK said. The income-expectations index leapt to 44.6 from 25.9, GfK said, adding that this "very positive development" is further boosted by the fact that price pressure on consumers hasn’t intensified any further of late. The propensity to buy index increased to 35.1 from 31.5. "Positive economic results and extremely pleasing labor-market figures are improving consumers’ planning security, which plays an important role, particularly where larger purchases are concerned."
I already sent out an Email Alert to Members this morning pointing out that, last Tuesday, we had the same Greek uncertainty with the same protesters outside of Parliament with the same critical vote looming that was too close to call – and we had a huge rally. We’ve been bullish since last Friday and we obviously had no reason to change our minds yesterday as we moved nicely over our 2.5% line on the Nasdaq and…