Mid-Day Market Action
- US: Dow: 11822.72 (-1.11%), S&P 500: 1210.59 (-1.24%), Nasdaq: 2529.87 (-1.91%)
- Europe: CAC: 2976.17 (-3.45%), DAX: 5684.19 (-1.56%), FTSE: 5378.48 (-2.30%).
- Asia:Australia: 4190.50 (-0.07 %),China: 2228.53 (-0.90%),Hong Kong: 18354.43 (-0.51%),India: 4763.25 (-0.78%),Japan: 8519.13 (-0.40%),Korea: 1857.75 (-0.34%),Singapore: 2672.39 (-0.50%),
- Metals: Gold: 1576.00 (-5.53%), Silver: 28.65 (-8.16%), Copper: 3.26 (-5.07%)
- Energy: Crude Oil: 95.89 (-4.24%), Natural Gas: 3.17 (-3.39%)
- Agriculture: Corn: 5.78 (-1.78%), Soya Bean: 10.99 (-1.74%), Wheat: 5.90 (-0.30%).
- Currency: EUR/USD: 1.2964 (-0.53%), GBP/USD: 1.5443 (-0.23%), USD/JPY: 78.070 (0.13%)
- 10 year US Treasury: 1.936% (-0.030)
Market News Update
- US Markets down over 1%: US markets fell for the third consecutive day and were down over 1% on Wednesday morning, as oil, gold and euro dropped sharply. The markets are worried over a possible downgrade of Spanish Debt, and the break of yet another psychological level on the euro.
- Euro falls below key psychological level: Euro dropped below the key level of $1.30 on Wednesday, as market expectation of any solution to the European debt crisis, cooled off. Euro is at its lowest level since January 2011.
- Precious metals caught in a wave of selling: Gold and Silver are both down over 4% in a sell-off on Wednesday, that traders attribute to a falling Euro, making dollar denominated metals more expensive to own. Gold tumbled below $1600.
- Oil slumps over 4%: Oil futures fell by more than 4%, as part of a broad commodity sell-off triggered by a weakening euro and worsening European debt crisis.
- Bonds sell at record low yields: 30-year US government bonds have for the first time sold at a yield under 3%, at 2.925%. Euro-zone fears have driven a lot of investors to safe haven US debt.
Company News Update
- Credit Agricole revealed plans to cut 2300 jobs, world-wide, mostly in the corporate and investment banking unit.
- First Solar cut its 2011 sales and earning forecast, for the second time in two months, as a result of sharp fall in the price of solar panels. The stock is down 67% year to date.
- Coca Cola Co. acquired about half of the equity in the beverage business of Saudi Arabia based Aujan Industries, for $980 million, in a bid to expand its presence in the non-alcoholic beverage space, in the middle-east.
- Mobile chip-maker Broadcom has raised its fourth quarter sales outlook, above street expectations.
- Avon Products Inc. will be searching for a new chief executive officer next year to replace current incumbent Andrea Jung. The stock surged following the news.
- Travel operator, Thomas Cook, in an effort to bring its debt under control, will close 200 stores. The company posted losses of £398 million in fiscal 2011.
Hedge Fund News Update
- Hedge funds are braced for their worst year since 2008, and their second worst year in two decades, according to data released by Hedge Fund Research.
- According to the Barclay Hedge Fund Index, hedge funds lost 1.04% in November, amid growing fears of a European banking system crisis, and a global recession.
- Bostonbased Baupost Group LLC, and three of its affiliates, have become biotechnology company, Targacept Inc.’s largest share-holder.
- In a survey of more than 1000 hedge funds, fund of funds and investors, Cayman Islands was named the most favoured domicile.
- Singaporebased RSR Capital will be returning money to external investors, and will change the fund’s strategy for a possible relaunch next year.
- Former Goldman Sachs and Lone Pine executives are aiming to raise $1 billion in anAsiafocused hedge fund.