As the pressure mounts in the US Banking system, so does it start to climb in London. Interest rates on corporate bonds, leveraged buyouts loans, derivatives and even U.S. mortgages are pegged to the Libor rate. After UBS was quoted saying (post 38billion in write downs) that it could get better rates than that of the other banks with less write downs. This difference and others have lead to a lack of confidence in the 24 year old system of setting rates.
To resolve this issue, the British Bankers' Assoc. is looking into ways solve the problem and will offer information regarding a solution on May 30th, 2008. What they offer, may give us a clue to how long the credit crisis might last.
Asia had its first up day in 6 days yesterday. This might be something to watch. If you are considering buying anything Asian (equities), you might take a look now. The tide might be shifting.
New Home Sales numbers and Consumer Confidence numbers will come out on Tuesday morning, along with the Richmond Fed Index(all at 10am EST).
Thursday will give us Jobless Claims report and will probably offer the some of the largest fundamental movement this week.
This weeks economic calendar.
http://www.bloomberg.com/markets/ecalendar/index.html
With 17 min. to open, Dow futures are up 18, with oil down .85 cents to $131.34pb.
Hoping your weekend was cheap on gas.....
Good Fortune from Trade-Equity.com!!!
Monday, May 26, 2008
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