Consumer confidence in the Euro area plunged 3.1 to -24.6,
the steepest decline in three years. Consumer confidence has only been lower
than current levels three times in the past 30 years. Germans were the most confident
(or rather least unconfident), while
Greeks “are urgently trying to find new reasons to keep pushing the rock uphill
day after day” (ZeroHedge).
US jobless claims were up to 374K versus 372 prior and 370K
expected. Yesterday’s Beige book showed most districts “growing gradually”, retail
sales increasing, and stable prices for finished goods. This is all good news,
except for traders betting on the Fed announcing a new round of easing. The
market was little changed by the news as it looks to Bernanke’s speech
tomorrow.
The S&P 500 has only changed more than 0.25% 4 of the
last 16 days, while during the same period the VIX has inched up from a low of
13.28 to 17.06. Implied volatilities premium to realized volatility continues
to grow and is exceptionally high by historical standards.
Comments