Posted Jul 14, 2015 by Martin Armstrong
The markets were relatively well behaved today, with little geopolitical excitement to unnerve trading, but we did see weaker economic data in the States. Retail sales were expected +0.2% but failed to deliver showing at -0.3%, ex-autos -0.1% vs. 0.5%. Also, May Business Inventories broadly in-line at 0.3%.
Despite the less optimistic showing, the U.S. Stocks put in a reasonable performance, gaining between 0.45 and 0.66% DJI and NASDAQ.
We did see an impressive performance from the U.S. Treasury market (guess this is to be expected with such weak Retail Sales) and that managed to tighten some of the spread differential lost over the Bund yesterday. Today, that spread (TY/RX) tightened 5bp to trade late at 144bp.
The benchmark Greek indicator we show daily is the GGB (Greek Government Bond), was a little weaker and marked at 25.5% in late trade. Traders normally detest quiet days but after the torrent of storms we have had to endure recently – today was a breath of fresh air.
Don’t expect it to last!