Sense on Cents

Stocks in Asia rose on the heels of a report that China’s Wen May Announce New Stimulus Measures to Revive Growth

With China allocating this capital to a new stimulus, will that lead to lessened appetite for U.S. Treasury debt? In overnight trading, Treasuries Drop on Potential $60 Billion Note Sale Next Week.

In other market making news, the shine has come off gold somewhat. I had cautioned that I do not play in gold because of the large number of speculative traders. Gold dropped 3% overnight and is back to $910/oz.

The U.S. dollar continues to move higher versus the Japanese yen and is back close to par, 100 yen for $1 dollar.

I remain in the camp that the bond market will continue to be pressured by the global demand for capital.

One story that also bears watching is the “plundering” of Merrill Lynch. In breaking news the WSJ reports how Merrill Lynch paid a large number of individuals outrageous sums at the end of 2008. Merrill’s $10 Million Men highlights the details. If I am John Thain, I’m not sleeping well!!

LD

This entry was posted on Wednesday, March 4th, 2009 at 6:31 AM and is filed under China, Deficit, Government funds, Mortgage Crisis, Stimulus Plan, Wall Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.