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The theme of the day is shifting from dollar strength to yen rally in early US session after disappointing data from US. Stocks open low and is feeling tremendous pressure with DOW down over 100 pts within first 5 mins of trading. The Japanese yen, on the other hand, surges sharply against Euro, and to a lesser extent dollar. NY State Manufacturing survey was disappointing, dropped more than expected from -4.6 to -9.4 in June, breaking recent up trend since April. Nevertheless, the reading was still far better than March's low of -38.2. The index generally suggests that manufacturing sector is having some stabilization but is not yet out of the woods. Net Long term TIC capital flow slowed sharply from $55.4b to $11.2b in April, showing that private foreign investors reduced their net holdings of corporate and government agency bonds.
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