Forex Investment and Currency Trading

A positive tone to equities overseas after a week that saw US equity markets rise nearly 11%. In Asia, equity markets were up pretty much across the board, with the Nikkei up 1.8%, or +135 points to 7704. The Hang Seng jumped 3.6%, or +451 points, to 12,977. India’s Sensex soared over 2% while China’s Shanghai Composite rose 1.1%. The one fly in the ointment was the Korean Kospi, which was down a touch, falling 0.05%. In Europe, equity markets are up roughly 2.8%, with the FTSE up 2.1%. The trend looks likely to continue at home, with equity futures pointing to a higher open this morning across the major indices. And, with risk appetite returning of late we see that bonds continue to sell off. The US 10-year Treasury note yield is up 5 bps to 2.94% while the 2-year note is up 5 bps as well to 1.00%. In Europe, bonds are selling off as well with yields up anywhere from 3-4 bps. In keeping with the continued risk appetite theme, gold is selling off this morning as well, while the dollar is softer against the major currencies.

Something for everyone in the weekend New York Times
The front page of the Saturday New York Times had something for everyone. Take a look at “Bad Economy Leads Patients to Put Off Surgery, or Rush It”. Doctors and hospitals are increasingly finding that patients are putting off elective surgeries like knee replacements and nose jobs. At the same time, many are speeding up non-urgent procedures out of concern that they may soon lose their health insurance. For those looking for an upbeat look at the state of the economy take a look at “Weary of Looking for Work, Some Create Their Own Businesses.” When the economic backdrop gets increasingly ominous many folks turn to their inner-entrepreneur and try to create their own work. The Times calls this the “mother of invention”.

The crisis in pension funds
Take a look at page C1 of today’s Wall Street Journal, “Pension Bills to Surge Nationwide.” Many state and local governments, already tightening their belts, are about to see an increase in their pension bills due to the recent market declines. In New Jersey, legislators are considering a bill that would allow municipalities to defer half their annual pension bill for one year. In Pennsylvania, the public pension fund has warned that employer contribution rates could soar to 28% of payroll from 7%.