Citgroup Equity Offering Becoming A Correction Catalyst?

Asia closed negative today, Europe is trading also negative -0.5% on average.

After I started began to doubt my calls on TARP repayments as a potential correction catalyst the Citigroup equity offering has turn out to be full blown fiasco. The offering was priced yesterday at $3.15 per share, a 20+ percent lower the share was trading before the offering announcement. Treasury delayed sale of its stake because the $3.15 per share price is 10% lower from the price the Treasury acquired its stake. Bloomberg story: U.S. Delays Sale of Citigroup Stake as Shares Sell at Discount.

On economic data front today’s surprise comes from the U.K. where November retail sales fell 0.3% vs. consensus rise of o.5% and a gain of 0.5% in October. As U.K. economy structure and problems are very similar to U.S., maybe a leading indicator what is coming in the U.S.

Short follow up on U.S. economic data from yesterday. MBA Purchase Applications came at -0.1% vs. prior reading of 4% rise. Housing starts were reported at 574,000 in November vs. 575,000 consensus and 529,000 in October. Overall it looks the U.S. housing has bottomed and now is stagnating at bottom levels.

U.S. consumer prices rose 0.4% in November same as foretasted M/M. If we take out food and energy the change was flat. Change on the year level was 1.9%. No signs of inflation.

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This entry was posted on Thursday, December 17th, 2009 at 9:00 am and is filed under Markets, U.S. Housing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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