Spain wins Euro 2012; not likely a winner in the 'Debt Cup'
Posted July 2, 2012
Perhaps the Euro Zone should take notes from the Spanish Soccer Coaches, as they seem to have a formula for success in leading a team to victory. Spain won its third major championship in a row on Sunday, thrashing Italy in a 4-0 victory to win the Euro 2012 Championship. Now if only the Euro Zone could have the same success. Already, there is skepticism from the Netherlands and Finland as to how impactful the summit resolution will be in getting the Euro Zone back on track as it relates to managing its debt issues. Time will tell on this issue.
Here at home, this week is shortened by the July 4th holiday as we celebrate our nation’s birthday. Even with fewer trading days this week, we could see some interesting movements this week as the markets will be very interested in Friday’s Employment report for June.
Monday’s ISM (Manufacturing) number indicated continued market weakness, and the bonds reacted with strength to the data. Prices went up and yields dropped as weaker than expected numbers pushed the 10 year yield below 1.60 again, and reinforced the notion that we’re experiencing continued economic headwinds here in the US. A reading of 49.7 for June versus 53.5 in May states that for the first time in two years, a contraction position in manufacturing takes the headlines rather than an expansion position.
Better news on the housing front for Monday as we received the highest level of construction spending seen since December 2009 according to the Commerce Department. Economists’ were expecting a moderate gain of 0.2% versus the 0.9% that was reported. Mortgage Rates continue their strong run.