A Sovereign Wealth fund from China had to step in and help Morgan Stanley out as they posted their first quarterly loss ever.
Morgan Stanley (MS US) rose 22 cents, or 0.5 percent, to $48.29. The second-biggest U.S. securities firm received a $5 billion investment from China Investment Corp., the nation's sovereign wealth fund.
Also, when it comes to housing....I'd rather hear from the home builders themselves rather than an analyst. Here's how things are going for one home builder that reported earnings last night:
Hovnanian Enterprises Inc. (HOV US) fell 55 cents, or 6.5 percent, to $7.85. The New Jersey homebuilder that's lost three quarters of its market value this year reported a fiscal fourth quarter loss that was four times bigger than analysts estimated as home buyers canceled their contracts.
So as you can see, we're not out of the woods yet when it comes to housing.
So what does all of this mean for currencies? Since stocks will continue to be choppy, you'll see big gyrations in the Japanese yen as traders try to figure out whether stocks are headed higher or lower. If higher, they'll short the yen. If lower, they'll buy the yen.
My bet for now is on more yen buying in the near term.
Sean Hyman
www.money-trader.com
www.sovereignsociety.com
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