The U.S. Fed Killed The Global Rally, But Somehow Greece Is Now The Money-Making Trade

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Asian stocks routed after last night’s U.S. outlook downgrade from the Fed. Chinese 2Q GDP growth also came in at 10.3% vs. 10.5% expected. Korea showed relative strength today, note they’ve recently hiked their 2010 GDP forecast.

Korea: -0.4% (KOSPI)

Asia: -1.1% (MSCI Asia Apex 50)

China: -1.7% (CSI 300)

Japan: -1.1% (Nikkei)

Hong Kong: -1.6% (Hang Seng) 


European shares are trading moderately lower as well. Though notice the relative strength in Greece of all places. The euro is still making a run for $1.28.

Greece: +1.1% (Athex)

The Euro: $1.276 (+0.2%)

London: -0.5% (FTSE 100)

Frankfurt: -0.4% (DAX)

Paris: -0.5% (CAC 40)

Dollar and commodities are lower. But gold showing strength. BDI suffers a nasty decline, but check out the relative strength in dry bulk stocks lately. Clear divergence there.

Gold: +0.3% ($1,211)

 Dollar Index: -0.2% (DXY 83.3)

Oil: -0.2% (Light Sweet Crude $76.60)

Baltic Dry Index: -4.5% (BDI 1,709)


U.S futures are trading around the zero-line, slightly down. Today look out for the Producer Price Index at 8:30 AM ET, jobless claims at 8:30 AM, and Industrial Production at 9:15 AM.

UPDATE 6:50 AM: U.S. futures now in the green after blow-out JP Morgan earnings were announced pre-market.

EARNINGS TODAY: JP Morgan (JPM), Google (GOOG), and Novartis (NOV)

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