Equities
Asian markets consolidated after the powerful rally over the past few days. The Nikkei rose a mere 7 points to 9972, the Shanghai Composite inched up .1%, and the Hang Seng slipped .1%. Moody’s warned that China’s debt might be significantly higher than previously estimated, pressuring Chinese banks. The Kospi rallied .8%, leading the region, as tech shares extended their gains.
In Europe, the major indexes closed mixed. The FTSE edged up .1% to 6024, while the Dax closed flat, and the CAC40 dropped .6%. Moody’s downgraded Portugal’s debt to junk, warning more bailout funds might be needed, as the sovereign debt crisis continues to unfold.
A similar lackluster performance played out in the US. The Dow slipped 13 points to 12570, but the Nasdaq pulled ahead another .4% to 2826. Financials fell, while energy rose.
Netflix jumped 8.1% after announcing it would expand its movie streaming service to 43 countries in Latin America and the Caribbean.
Treasuries and Commodities
Bonds rose following last week’s steep declines. 10-year notes advanced 16/32 to yield 3.12%, and 30-year notes gained 6/32 to yield 4.38%.
Crude oil jumped 2.1% to 96.95, and natural gas gained 1% to 4.352 as commodities rallied. Metals advanced, as silver soared 5.8% to 35.85, gold climbed 33.50 to 1516.10, and copper rose 1.1%.
Corn jumped 6.2% and wheat gained 5%, as agricultural futures rose as well.
Currencies
Renewed concerns over Portugal’s debt pressured the Euro, as the unified currency fell .9% to 1.4421. The Swiss Franc benefited from the anxiety, gaining .8% to .8407. The US Dollar rose .5% against the Australian Dollar, .3% against the Canadian Dollar, and .4% against the Yen.
Economic Outlook
Factory Orders rose by .8%, much better than last month’s 1.2% decline, but slightly below expectations.
Wednesday’s reports will include the ADP employment report, the ISM non-manufacturing index, the Challenging job-cut report, and weekly mortgage applications. Investors will be looking for clues concerning Friday’s critical non-farm payroll report.
