Bulls will be breathing a huge sigh of relief today. They stole one from the bears.
But first, the scoreboard:
S&P 500: +5
And now, the key stories of the day:
- Thanks to the multi-day dollar rally against the yen, the Nikkei surged overnight, but it was generally a weak night in Asia. Shanghai fell again, and late in the day (in China) the government announced a hike in reserve requirements.
- In Europe the story is: PIIGS. Actually, more specifically, the story in Europe was Ireland, where bonds were completely routed. Everything from the short to the long end of the curve blew out like crazy. There were even rumours of an imminent IMF bailout of the country, which were later denied. Meanwhile Greece confirmed that it would not meet its deficit goals for the year.
- In the UK there were massive student austerity protests that even got violent. Click here to see photos of the protest >
- US futures were just a tad south in the early going. The initial claims report at 8:30 (it was on a Wednesday this week due to the Veteran’s Day holiday tomorrow) was better than expected, and registered its best number in two years. But stocks didn’t move all that much on the news. The general tone in early trading was definitely negative, with the dollar rallying, and the precious metals down a bit.
- The whole thing had a very Flash Crash-ish feel to it, and with tension mounting ahead of the G20, it felt like a dam could burst. Pictures of protests on CNBC really added to the similar feel.
- At 1:00 we got the much-awaited 30-Year Treasury auction, one of the most hyped auctions in a while. The last one, in mid-October went pretty poorly, and this was the same. Yields briefly blew out, about then they came in pretty sharply, and basically the impact of the auction was totally erased.
- Bottom line: There were a lot of opportunities for the bears to keep the momentum. They failed.