US Equities, Treasuries stage a late session selloff on uncertainty regarding US fiscal path, Euro falls on ongoing sovereign debt concerns. US Dollar gains.

US ECONOMIC RELEASES FOR NOVEMBER 16th 2010.

8:30 AM EST:  US PRODUCERS PRICE INDEX (EXP +0.8%, EX FOOD & ENERGY 0.4%)
9:15 AM EST: US INDUSTRIAL PRODUCTION: (+0.3%)
10:00 AM EST:  NAHB HOUSING MARKET INDEX


US Equities and Treasuries ended Monday’s session mixed to lower. US Bonds continued their selloff as the shine of QE2 prospects continues to wane. A report stating that a number of economists, hedge fund managers, and financial professionals are lining up against the Fed’s plan to print another $600 billion in seemingly directionless capital injections pushed the 10 year yield ever closer to the psychologically important 3.00% level.

Concerns regarding Euro zone debt is ongoing. No solution regarding the Irish/EU debt  emerged over the weekend, so it does not offer a great deal of surprise that deficit laden areas of sovereign debt are showing their vulnerabilities. US Treasuries regained some ground in the overnight session ahead of the Federal Reserve’s purchase of short term bills. The US Treasury complex may find some ground in the coming weeks as purchases tied to end of the year fund portfolio rebalancing may offer some support to financials prices.

US Stocks closed near their worst levels of the session, after the recovery momentum from the strong US retail sales numbers faded as the uncertainty of global recovery prompt market participants to take a “wait & see attitude. The retail sector will remain in focus this week as Walmart and Nordstrom, two opposite ends to the consumer spectrum, will be releasing earnings reports on Tuesday & Wednesday. Inflation data on the producer level may also offer additional direction on the ability of the market to weather rising prices as a help or hinderance to growth

Commodities continued to return their recent gains as the US dollar gained strength in Monday’s session.

Richard Roscelli
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