- In equities: Global equity and futures markets took a beating at 21:30EST
when news leaked that US based Bank of America [BAC] may need to raise up to
$35B in capital to fill balance sheet wholes as a result of US Treasury stress
test results. The European pre-market saw a flurry of corporate news with large
cap firms including BNP Paribas [BNP.FR], Total [FP.FR], Lafarge [LG.FR], BMW
[BMW.GE], Deutsche Post [DPW.GE] and Munich Re [MUV2.GE] (amongst others)
providing Q1 results. Analyst beating net and rev numbers at BNP Paribas shook
some negative sentiment out of the financial sector and bullish comments from
the CEO of Deutsche Post regarding a recovery in mail volumes add mixed
sentiment to premarket trading. European equity futures opened to the downside but
quickly paired losses on the back of solid Q1 earnings. At the open of equity
trading, the CAC, DAX and FTSE100 all opened slightly to the downside on mixed
trading. The CAC40, based on strength in BNP and Alcatel-Lucent [ALU.FR]
(following an upgrade at Goldman) moved into positive territory just past the
open with the FTSE100 dipping above and below that mark through the first hour
of operations. As expected, Bank of America in Frankfurt
trading [NCB.GE] moved significantly to the downside on the open, trading in a
range of approx -15%. At 4:00EST, Euro zone PMI numbers ahead of expectation
and positive comments out the Halifax regarding UK home price rallied European
markets. The DAX30 moved out of negative territory and the CAC40 accelerated
its lighter tone, surpassing the FTSE100 as the leading mover to the positive
side. UK listed
stocks paired gains in the 4:00EST hour as their continental rivals continued
to push forward, the CAC40 trading on volume 35% higher than average following
the large volume of Q1 earnings releases. Markets largely ignored below
expectation Euro-zone retail figures that set new record lows, and a strong
German bid to cover on its Bobl supply pushed equity markets to new session
highs +50% to +1% across the board. As the New York market developed, markets
again turned mixed as another wave of corporate earnings out of the US are
expected to dictate US premarket sentiment along with the US April Challenger
job cuts which is expected at 7:30EST
- In Individual Stocks: In individual stocks: Bank of America[ BAC] Reportedly
may need to raise up to $34B (49% of market cap). Follow Up as of : NYT reports that Bank of America
needs $33.9B. Follow Up as of :
WSJ reports that Bank of America needs $35B, US
government stress test found large gaps in the firm's capital level. || BNP
Paribas [BNP.FR] Reports Q1 Net 1.65B v â‚¬1.3Be. Rev â‚¬9.48B v â‚¬7.5Be, Q1 AUM
â‚¬510B (+1.3% q/q), Q1 Net asset inflows +â‚¬13.4B, Q1 Tier 1 ratio 8.8% v 7.8%
q/q, Q1 Doubtful loans and commitments â‚¬19.2B v â‚¬16.4B q/q, Q1 Allowance for
loan losses â‚¬16.2B v â‚¬15.0B q/q. The outlook for the global banking sector
remains uncertain, in spite of a recent rebound in markets. || Lafarge [LG.FR]
Reports Q1 Net Loss â‚¬17M v Loss â‚¬18Me, Rev â‚¬3.6B v â‚¬3.6Be, states it is
difficult to make forecasts due to high economic uncertainty. The economic
slowdown and worse weather conditions negatively impacted volumes and margins.
Q1 Cement sales -9% y/y, Q1 Aggregates & concrete sales -11% y/y, Q1
Gypsium sales -12% y/y. || BMW Group [BMW.GE] Reports Q1 Net loss â‚¬152M v loss
â‚¬180Me, EBIT loss â‚¬55M v loss â‚¬275Me, Rev â‚¬11.5B v â‚¬10.8Be. Cannot provide
reliable FY09 outlook; reiterates FY09 sales will not match last year's levels.
Reduced automobiles division working capital by â‚¬1.08B in Q1. Aims to maintain,
build market share in premium segment this year. Group liquidity stood at â‚¬10B
at end of Q1. || Deutsche Post World [DPW.GE] Reports Q1 Net profit â‚¬944M v
â‚¬219Me, Rev â‚¬11.5B v â‚¬11.8Be. Revenue in the MAIL Division -4.5% y/y, Revenue
in the EXPRESS Division -25.9% y/y, Europe Rev -16.9% y/y, Asia-Pacific Rev rev
-6.7% y/y. || Munich RE [MUV2.GE] Reports Q1 Net Profit â‚¬420M v â‚¬399Me, Rev
â‚¬10.3B v â‚¬10.1Be, Increases premium forecast for 2009, continues to refrain
from share buyback. Sees further improvement in prices, terms and conditions in
reinsurance. || Ahold [AH.NV] Reports Q1 Rev â‚¬8.7B v â‚¬8.6Be. Remains well
positioned to meet customer needs and to respond to competition in the current
turbulent economic environment. ||
- Speakers: ECB source reportedly stated that the ECB had no consensus on
non-standard tools at this week's policy meeting. The 'source' commented that
the majority of ECB members viewed the 1.0% as the floor in its refi rate.
There was no consensus among central bank members on purchasing either
government bonds or corporate paper in its non-standard tools. It was most
likely that the ECB would extend refinancing to banks || SNB's Jordan
commented that it was too early of any final assessment on unconventional tools
but early signs are positive. SNB to act decisively if necessary on Swiss Franc
|| China's PBoC
reiterated the view that its economy would see fast and stable growth and the
central bank stated it would ensure ample liquidity remained available to
support growth . The PBoC cautioned that the foundation for recovery was not
yet firm but Q1 GDP did improved over Q4. It would maintain the
"Moderately Loose" monetary policy and sought continued exchange rate
flexibility. It saw currency depreciation risk for many key currencies,
including USD || Norway PM commented that low interest rates were keeping the
NOK currency weak but that it did keep investment costs down || EU Business
group stated that it saw the ECB cutting interest rates by 25bps at this week's
policy meeting (in line with analyst consensus views)
|| Thailand Fin Min stated that the Thai Gov't approved the THB 800B borrowing
plan to finance its fiscal stimulus plan
- In Currencies: The session began with another bout of risk aversion following
the report that Bank of America [BAC] needed another $35B in capital. However,
the BNP.FR results soothed over the initial fears. EUR/USD was holding below
former hourly support of 1.3330 as the NY morning approaches but off its worst level
of 1.3250. GBP continued to be helped by improving UK
data. GBP/USD was back above the 1.51 mark after UK PMI services data. JPY sawn
most of its late Asian gains erode as the European morning progressed. EUR/JPY
tested below the 130 level before recovering back above 131.
-In Fixed Income: Ahead of the Treasury's $22B 10y note refunding and reverse
auction from both the BOE and NY Fed, supply has been well received in Europe.
â‚¬4.9B in 5y OBLs, with the bid-to cover of 1.6 times above the previous 1.3 and
the Bundesbank retaining 18% of the total offering, slightly below the previous
auction. The UK
sold Â£3.5B in 10y Gilts in a robust auction, covered 2.5 times and with a yield
tail of just 0.2bps. Some high profile corporate issuance was priced with
Volkswagen and Sanofi Aventis selling â‚¬3B worth of bonds each, and Renault
selling â‚¬750M in an offering reportedly 8 times oversubscribed. Three month
Euribor fixed at a new low of 1.33%, whilst â‚¬ swap spreads have narrowed by
almost 2bps to sit below 45bps, their lowest levels since Oct 2007 || Austria
Debt Agency raises 2009 total issuance to â‚¬28B-â‚¬33B from prior range of â‚¬24B-
- In Energy: Saudi Aramco stated that $60-70/bbl in oil was needed for marginal
producers. Saudi Arabian oil output was 8M bpd, with no immediate expectations
of production cut. To meet end of June target for raising Arabian oil capacity
to 12.5M bpd.
*** NOTES ***
- Dealers thinking back about Fed's Bernanke comments on Tuesday about the
warning growth outlook could be hampered if credit markets relapsed. Thus BAC
now needs $35B above the earlier speculation of a $10B.
- PBOC: Growth expected to be 7%-8% 2009 & 2010. Sees FX depreciation risk
for key currencies, including USD
- Fed's Yellen: Recent rise in Treasury yields reflects optimistic news on
economy but does not see a "V" shape recovery
- The slew of PMI data continues to show improvement. European PMI came above
services PMI hit 6 month highs
- Looking Ahead: More Corporate earnings: The first of a series of US emplyment
data. April ADP private jobs estimate early Wed. Forecast of -635K v -742K
prior month|| BOE and ECB policy decisions Thursday. Focus on ECB policy and
- 7:00 (US) MBA Mortgage Applications w/e May 1st: No expectations v -18.1%
- 7:30 (US) Apr Challenger Job Cuts Y/Y: No expectations v 180.7% prior
- 8:00 (NO) Norwegian Deposit Rates: 50bps cut to 1.50% expected, current
deposit rate is 2.00%
- 8:30 (CA) Canadian Building Permits M/M: 2.3% expected v -15.9% prior
- 11:00 (US) NY Fed to buyback Treasuries maturing between 03/31/2011 -
- 1:00 (US) Treasury to sell $22B in 10y Notes
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
Forex News 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."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
POTENTIAL PRICE RISK: HIGH to Medium- Wed --14:15 GMT-- US- Industrial Production
POTENTIAL PRICE RISK: HIGH- Wed -- 15:00 GMT-- CA- Bank Of Canada Decision
John M. Bland, MBA co-founding Partner, Global-View.com
Max McKegg's Daily Forex Trading Forecasts
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.