June 24.

June 24. The day began with big drops in risk assets- stocks, gold and oil all opened with heavy losses. In an already weak market news was (officially) released that strategic oil reserves would be tapped to cool energy prices. Crude oil ended down around $3.60 to below 92.  Gold fell $30.  However stocks were able to fight back from deep losses and close only modestly lower as an austerity agreeement between Greece and the EU was disclosed late in the trading day causing a price surge.  From Angela Merkel: “This is an important decision that says once again we will do everything to stabilize the euro overall.”  ‘Once again’, and again, and again…until it just stops working.  Ironic that Greece is able to forge an agreement on budget cuts, while talks in the US regarding a debt ceiling increase again broke down. Maybe some street rioting will help move things along.

–New lows in many eurodollar calendar spreads. Dec/Mar settled at only 4.5.  March/March is barely above 1/2% at 56.  Ten year yield dropped to 2.91%.

–Chicago Fed’s National Activity Index was weak… second month in a row of negative reading and previous month revised lower from -0.45 to -0.56, while May was -0.37. The three month moving average is now -0.19.

–Today includes final Q1 GDP at 1.9% and Durables expected +1.0%.

Posted on June 24, 2011 at 12:03 pm by alexmanzara · Permalink
In: Eurodollar Options

Leave a Reply