The Weekend Wrapup 1.28.12

Americas:

• The NASDAQ and the S&P barely finished in the green, gaining 1.1% and 0.1% respectively while the DOW finally cut its 3-week long hot streak, losing 0.5%.

• Not sure how you would've missed it, but anyway, the Fed announced that they'll be keeping rates near zero until late 2014, and 5 year note yields drop to their lowest, ever.

• University of Michigan consumer sentiment figures rose to its highest in almost a year. Meanwhile, US GDP numbers dissappoint and jobless claims rise once again.

Europe:

• While Italian and Spanish bond yields trend lower (despite ratings cuts and a spike in unemployment), the rest of Europe is a totally different story; Portuguese debt yields are at a new high, negotiations in Greece are still going nowhere, and further austerity measures are said to be imposed on the region. Wonder how they'll take that?

• Every hedgie and their dog is ft.com/blog/2012/01/26/853631/socgen-hedgies-short-euro-against-dollar-like-never-before/">short the Euro.

Asia:

• The BOJ cut their economic forecast for 2012 just as Japan reported its first trade deficit in over 31 years. This could get real bad real quick, but thankfully some of them are getting with the program that a jp/en/mopo/mpmsche_minu/minu_2011/g111221.pdf">strong yen can be used to their advantage. Related reading: Spike Japan

• The Bank of Thailand cut interest rates this week to spur their recovery post-flooding. The Reserve Bank of India slashed their cash reserve requirements as well while the RBNZ held their rates steady.

• Australia’s in pretty bad shape, and while China’s trying to knock RE prices down a few pegs, infrastructure construction in the region has seemingly grinded to a halt.

That's it guys, I know I skipped a lot of stuff but I gotta run now. I'll leave you with Georgie and his thoughts on the EU:

Have a good one monkeys.