Share This Story
Forex Blog - US Market Update
Dow -57 S&P -6.60 Nasdaq -12.25
- The third quarter got off to a difficult start this morning as the DJIA
opened down more than 100 points below yesterday's close (this after finishing
H1 down 15%) and the NASDAQ opened down 0.98%. Both indices made it back into
positive territory by mid-morning before heading south again. The morning's
June ISM manufacturing reading helped markets along, as the reading crossed
into positive territory for the first time since January. The May construction
number was slightly less negative than expected. Oil is near record highs after
Israel and Iran exchanged statements early this morning:
a former Israeli Air Force general told Der Spiegel that Israel would not stand by while Iran builds nuclear capabilities, prompting
the Iranian Oil Minister to note that any attack on Iran would lead to a disruption in oil
exports from the Middle
comments come after a senior US defense official reportedly told ABC
last night there is an increasing chance that Israel would attack Iran. A spokesperson for the State Department
later questioned the ABC report , noting there was â€śno informationâ€ť that Israel would attack Iran. The financials are being led higher by
CIT+20% and LEH+5%, as well as multiple positive ratings announcements out of
Morgan Stanley overnight. CIT says it is selling its home lending business to
Lone Star Funds for $1.5B in cash, and in a separate transaction selling its
manufactured housing portfolio to Vanderbilt Mortgage and Finance for $300M.
After LEH hit a 52-week low yesterday afternoon, rumors were then questioned on
CNBC and by other analysts, possibly contributing to early morning strength.
However, rumors continue to circulate regarding potential profit warnings from
major US and European commercial banks. LM-4. 5% is running down after
reporting after the close it would be forced to take a $146M non-cash charge to
support its money market funds. UBS was also down on a suspected impending Q2
cut in its profit forecast and further DoJ inquiries into the tax evasion case.
CME-6% is also hurting after reporting June volumes down 4% y/y. SHW jumped
more than 4% after reports circulated that it had won an appeal in Rhode Island surrounding a lead paint case verdict,
but had fallen below yesterday's closing price before recovering slightly.
UTSI+8% is surging after announcing that it would sell its personal
communications unit to AIG for $240M. In other news, BA announced further
delays to its 787 Dreamliner program, while VZ released pricing for the 3g
Apple iPhone, including a (considerably more expensive) contract-free option.
RIMM and AAPL are both up about 3% after starting the morning deep in the red.
- The USD is softer against the major pairs: EUR/USD is at 1.5765, little
changed from its opening levels in Asia, while the GBP/USD has been probing two-month highs, testing
above the 2.0 level. However, cable has been unable to sustain gains above its
200-day moving average of 1.9978. The USD/JPY cross is down 30 pips at 105.75.
The OPEC president provided some verbal intervention for the dollar, noting
that a stable USD would calm the oil markets, while the ISM manufacturing data
briefly aided the dollar, but the prices paid and employment components should
weigh upon any positive USD momentum. The prices paid component is also helping
metals remain near session highs. The ISM's Ore stated that companies have to increase
prices for consumers since other prices are increasing at such a rapid pace.
JPY and CHF carry related pairs are softer on growing risk-aversion. EUR/JPY
was off 65 pips at 166. 50 and EUR/CHF lower by 202 pips to 1.6070.
- Sept Bund +20 tick at 110.76; Sept Gilts +14 at 104.53. Euro Stoxx 50 -1.35
at 3,309; FTSE 100 Index -2.0% at 5,514; CAC 40 Index -1.7% at 4,358 and Dax
Index -1.2% at 6, 338.
Legal disclaimer and risk disclosure
All information provided by Trade The News (a
product of Trade The News, Inc. "referred to as TTN hereafter") is
for informational purposes only. Information provided is not meant as investment
advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed
reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete
2. Information can be mistakenly re-released or be
delayed, 3. Information may be incorrect, misread,
misinterpreted or misunderstood 4. Human error is a business risk you are
willing to assume 5. Technology can crash or be interrupted without notice 6.
Trading decisions are the responsibility of traders, not those providing
additional information. Trade The News is not liable
(financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities
involves a high degree of risk, and financial losses can and do occur on a
regular basis and are part of the risk of trading and investing.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."