Tag Archives: Euro

Hedge Funds Extend Summer Gains on Euro Optimism

Hedge funds posted gains for the third consecutive month in August, as the Euro advanced on optimism for a resolution of the European sovereign debt crisis.

The HFRI Fund Weighted Composite Index posted a gain of 0.8 per cent for the month, with leadership across equity hedge, event driven and relative value strategies, with each of these also posting their third consecutive monthly gain, according to HFR.

Equity hedge funds had the strongest contribution to overall industry performance, with the HFRI Equity Hedge Index gaining 1.2 per cent for the month. Gains were broad-based across the strategy, with quantitative directional, fundamental value and fundamental growth all gaining between 1.25 and 1.6 per cent. Other EH strategies had positive contributions to August gains, with equity market neutral, energy and technology-focused funds gaining between 0.6 and 1.2 per cent; short bias funds detracted from performance.


Wall Street Opens Higher

Reuters have reported that the Wall Street opened higher today after euro zone finance ministers agreed to a faster bailout of Spanish banks.

There was also optimism that Germany’s top court would approve the euro zone’s new bailout fund. The German Constitutional Court will consider whether Europe’s new bailout plan and budget rules are compatible with national law in a process influencing not just how to tackle the euro zone debt crisis, but how much deeper European integration can go.

Wolfgang Schaeuble, Germany’s finance minister, told the court on Tuesday that any significant delay in approving the permanent bailout fund could fuel financial market turbulence.

The agreement by the finance ministers and the optimism about the German court helped Spanish bond yields back off the 7 percent level, which has forced other countries to seek a bailout.

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Wall Street shakes off factory data; S&P, Nasdaq rise

(Reuters) – Stocks edged higher on Monday, shaking off a surprise contraction in manufacturing, which some investors took as a signal the Federal Reserve will take more forceful actions to boost the economy.

The Institute for Supply Management’s manufacturing index came in at a lower reading than expected in June, registering a contraction in the sector for the first time since July 2009.

The S&P was lower for much of the session but closed slightly higher in late gains. Still, industrial shares were under pressure after the data, the latest in a string of indicators pointing to deteriorating economic conditions around the globe. Boeing Co (BA.N) lost 1.5 percent to $73.18 and Caterpillar Inc (CAT.N) was off 1.4 percent at $83.68.

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Barclays boss under pressure as bank inquiry launched

(Reuters) – Pressure grew on Barclays Plc Chief Executive Bob Diamond to quit as Britain launched an inquiry on Monday into a market-rigging scandal, saying a “culture that flourished in the age of irresponsibility” among bankers had to end.

Barclays Chairman Marcus Agius resigned on Monday, saying “the buck stops with me” as the scandal over manipulating Libor interest rates claimed its first major scalp.

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Euro Leaders Turn To Central Bank For Help To Tackle Crisis

European leaders turn to the European Central Bank this week, seeking assistance from monetary policy makers to reinforce gains following euro-area leaders’ moves to calm markets and accelerate the currency bloc’s integration.

The Frankfurt-based ECB may offer help on July 5, with economists expecting an interest rate cut. The bank has a track record of action following political progress, including bond purchases that followed bailout programs and unlimited three- year loans on the heels of pledges supporting fiscal discipline.

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Euro-Area Unemployment Climbs To Record On Spanish Cuts

Euro-area unemployment reached the highest on record as a deepening economic slump and budget cuts prompted companies from Spain to Italy to reduce their workforces.

The jobless rate in the 17-nation euro area rose to 11.1 percent in May from 11 percent in April, the European Union’s statistics office in Luxembourg said today. That’s the highest since the data series started in 1995.

Europe’s companies are under pressure to lower costs to protect earnings as the worsening fiscal crisis erodes exports and consumer spending. Companies including Deutsche Lufthansa AG, PSA Peugeot Citroen and Spanish news agency Efe are seeking to eliminate jobs to cope with flagging demand.

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Manufacturing In U.S. Unexpectedly Contracted In June

Manufacturing in the U.S. unexpectedly shrank in June for the first time since the economy emerged from the recession three years ago, indicating a mainstay of the expansion may be faltering.

The Institute for Supply Management’index fell to 49.7, worse than the most-pessimistic forecast in a Bloomberg News survey, from 53.5 in May, the Tempe, Arizona-based group’s report showed today. Figures less than 50 signal contraction. Measures of orders, production and export demand dropped to three-year lows.

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