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)
Amid the turmoil in the public markets and the staggering macroeconomic environment, it should come as no surprise that the private markets are also struggling. In fact, there are some important links between private equity and the current economic environment. A closer look at PE reveals that the industry often serves as a leading indicator Read More
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.