Germany’s bond auction underperformed expectations overnight
Stocks and commodities started September on the down-side from the start of trading after economic news disappointed investors. Moody’s changed its outlook for Europe to “negative” while US manufacturing slowed more than expected in the month of July. Gold and other precious metals did gain on speculation that more monetary policy easing is coming soon. All sectors of the S&P were lower. We continue to view high-quality, high-dividend paying stocks as among the best investment opportunities for those seeking capital appreciation and current income – read our latest article in the Wall Street Journal here:
Germany’s bond auction underperformed expectations overnight, selling just over 3.1 billion Euros worth of 10 year Bunds versus a desired 5 billion Euros worth. This coupled with continued concerns over the flight of capital from Spain and Italy to northern nations within the Eurozone is cause equities to sell off this morning. There is little economic news on the calendar today, so markets are likely to continue to trend down in anticipation of tomorrows ECB announcement and US data. Thursday investors will get employment details via the ADP Private Sector Employment report, as well as ISM non-manufacturing data. The big announcement will come on Friday when the August Unemployment and jobless data is released. Market participants will also look ahead to next weeks’ FOMC economic forecast and speech by chairman Bernanke. Tune into Money Matters with Gary Goldberg each weekday at 10:05 AM by visiting our website www.thebetafund.com or by clicking here http://bit.ly/MMFNRadio to listen live.
Montebello Partners LLC