- In equities news overnight: European equity markets opened to a broadly positive level following strong Asian and pre-market trading levels. Asian equity gains snapped two sharply negative sessions with traders commenting that some short covering could account for some of the buying actions. European bourses opened positive following a large flow of equity news throughout the European morning. In sector performance, Oracle's post market report out of the US buoyed tech and software names with German [SAP.GE] posting strong gains along with Cap Gemini [CAP.FR] and Alcatel [ALU.FR]. Within the FTSE, miner and basic resource names continued the rally out of the Australian bourse with Rio [RIO.UK], Anglo [AAL.UK], and Eurasian [ENRC.UK] moving higher. A further sector upgrade for UK commercial retail names out of Credit Suisse lifted those names, specifically Hammerson [HMSO.UK]. Negative sentiment could not be kept out equity bourses, however, and initial gains were paired by 3:15EST with all major indexes moving into the red. Healthcare and retail names led the sector declines, disappointing earnings out of large ticket retailers Kesa Electric [KESA.UK] precipitated continued retailer declines. Declines persisted through the 3:00EST hour and into the 4:00EST time slot. European bourses bounced around their lows past 4:15EST and began a slow upward trend on little fresh equity news. Markets began expecting comments out the ECB regarding its first 12-month refi operation. Comments out of the OECD at 4:30 rallied equity markets sharply as the organization raised its member 2009 GDP target to a -4.1% from a previous 4.3%. Significantly, the OECD called for further ECB rate cuts and continuation of low levels for a considerable time. As expected, tech, basic resources and financials bounced on these comments. Equities again looked to pair their gains but new Euribor lows, with reductions in the 1, 3 and 6-month figures pushed equities to new highs. At 5:19EST the ECB released its 12-month refi results, announcing that â‚¬442.24B (ahead of expectations) had been allotted, equities pushed higher. The export heavy DAX lead the upward drift at +0.75%, the CAC at +0.50% and the FTSE lagging at +0.10%. Trading volumes through the European morning remained slightly muted, breaking a week that had been trending in line with moving averages.
- In specific equity news: Siemens [SIE.GE] Reaffirmd 2009 growth target, sees total profits exceeding â‚¬6.6B v â‚¬6.1Be (as first given on 29th April). || K+S [SDF.GE] Cut its 2009 and 2010 Global Potash Sales Forecast. 2009 Worldwide sales seen at 40M tons v 50M ton prior view. 2010 Worldwide sales seen at 50M tons v 60M ton prior view. || RWE [RWE.GE] Reaffirmed FY09 outlook, dividend payout to be 50-60% of recurring net . â‚¬450M efficiency enhancement targets remain on-line, seeking to extend savings to â‚¬1.2B by 2012. EU gives RWE clearance to acquire Dutch Essent with conditions. || Commerzbank [CBK.GE] Reiterated FY2012 op profit at more than â‚¬4B v â‚¬4.8Be; Targets FY2012 and later ROE around 12%. Q2 results have so far been mixed; business in private client services remains low. Does not expect any operating profit from CEE region operations. || MAN [MAN.GE] CEO: Q2 truck volumes should be comparable to Q1, is not seeing any real signs of improvement. || Air France [AF.FR] Has reportedly closed â‚¬661M convertible bond auctions. || Kesa Electricals [KESA.UK] Reported FY09 Pretax loss Â£81.8M (incl items) v Â£70.1Me, R Â£4.95B v Â£4.9Be. || Stagecoach Group [SGC.UK] Reports FY09 Pretax Â£196.4M v Â£174.4M y/y. Rev Â£2.10B v Â£1.8B y/y. || Inchcape [INCH.UK] Provides trading statement: 5 month total sales fell 22.6% in constant currency terms (-16% in GBP terms). || SAB Miller [SAB.UK] WSJ comments on company market share threatened by HeinekenNV and Diageo PLC, who plan to begin South Africa operations in the next few months. || Renault [RNO.FR] DoE formally grants $5.9B in new US loans to Ford, $1.6B in US loans to Nissan. || EAD [EAD.FR] rival BA: Reportedly in discussions to compensate Asian customers over Dreamliner delay. || Continental [CON.GE] Schaeffler to delay full merger with Continental -Manager Magazine. || Porsche [PAH3.GE] Volkswagen would see that Porsche Automobil would have an autonomous status under the VW unbrella - FT Deutschland. || ENI [ENI.IT] Declares force majeure on BrassRiver crude oil exports (Nigeria). ||Sulzer [SUN.SZ] Planning further cost cuts of up to CHF100M, to cut 1,400 jobs ( about 11% of workforce). To take CHF55M charge on back of activities. ||
- Speakers: ECB's Gonzalez Paramo commented that the ECB would wait and see effect of new measures and reiterated the view that confidence remained the main challenge for the economy. Spain must be precise on budget exit strategy as the economy was no longer in 'free fall' but was still falling. ||| (GE) German Fin Min Steinbureck commented that seeks to cut borrowing to â‚¬40B by 2014 and to comply with Maastricht Stability pact (deficit at 3% of GDP) by 2013 or 2014. Note: earlier this month Steinbureck confirmed that new borrowing for 2010 is expected at â‚¬90B, with a deficit of 4% of GDP in 2009, 6% in 2010, and below 3% of GDP in 2013 ||| BoJ's Nakamura commented that current financial conditions remained severe. He noted that it was too early to either end or even extend extraordinary policies. When the time does come to end the extraordinary measures it must be done in a way that would not surprise the markets. BOJ might end unusual measures when market recovers 'significantly'. He commented that the recent decline in long-term yields seemed to be occurring on receding optimism. ||| BoJ Shirakawa commented that Japan's economic decline has likely bottomed but it would continue to support economy with downside risks in mind ||| OCED commented on their member states and noted that Current FX rates are not affecting economic recovery, though strong JPY was hurting Japan. The weak USD was not a concern and that the Chinese Yuan would need an adjustment in long term. Chinese Govt has room for more fiscal stimulus in 2010. It noted that by 2011 Govts could start to unwind stimulus programs. OECD was not concerned over deflation or inflation issues and that rise in yields was due to normalization and not inflationary fears. The OECD did note that out of control budget deficits could lead to "blowout" in bond yields. On budgets; OECD preferred spending cuts to curb deficits rather than tax hikes. Preferable that Central banks keep interest rates to as close to zero as possible. ECB has room to cut rates further and should act quickly. ECB and BoJ should announce intentions to keep interest rates low || World Bank forecasted 2009 Russia GDP -7.9%, jobless rate at 13%, Inflation reaching 11-13%
- In Currencies: The USD began the European session on a soft note as Eastern European names were seen as 'aggressive' Euro buyers and this seemed to correspond with comments made yesterday by Russian Deputy PM Shuvalov in which he noted that its Central bank (CBR) was working on new steps to diversify currency reserves. EUR/USD traded as high as 1.4138 before consolidating. The OECD report on growth among its current members seem to help the USD steady a bit. The OECD raised US 2009 GDP view to -2.8% v -4% prior while cutting Euro-Zone's 2009 GDP view to -4.8% v -4.1% prior. The report also commented that ECB had room to cut rates further and should act quickly in doing so. OECD added that both the ECB and BoJ should announce intentions to keep interest rates low for a period of time. The EUR/USD tested 1.4060 as the morning wore on.
- Dealers also reported good demand from Middle Eastern players for GBP-related pairs. GBP/USD re-approached the 1.6600 area before retreating and EUR/GBP moved lower to 0.8500.
- In Fixed Income Supply: With equities bid, Government bonds have been on a weaker footing for most of the European session. However, news that banks, in the belief that rates are unlikely to fall further, had taken advantage of the ECB's first offering of 12 month funds more enthusiastically than expected provided a boost to short dated issues and sent the German yield curve steeper, with 2s10s currently back above 200bps. (European Banks borrowed â‚¬442B worth of 1 year funds at 1%, more than circa â‚¬300B expected) After opening offered, Gilts have managed to remain in positive territory with some slight steepening in the UK yield curve . Three month Euribor fixed at a new low of 1.195%
*** NOTES ***
- USD maintains a soft tone into FOMC meeting with reserve management adjustment allegedly behind the move.
- IMF may increase its 2009 and 2010 GDP estimates for most of Asia, excluding India and China, by about 1 percentage point
- OECD Economic Outlook: Revises its 2009 GDP for member countries to -4.1% from -4.3% prior view; first upward revision in 2 years.
- China's northern province of Liaoning, Asia's largest iron ore deposit has been discovered containing reserves of more than 3B metric tons -
- Japan's exports continued to tumble in May
- Japan's Cabinet Office is expected to forecast an approximately 1% expansion in the country's real GDP for 2010. This would be the first time in 3 years that the government projects economic growth
- China ordered local banks to avoid accelerating loan growth at the end of months and quarters
- Fed to start to hint at an exit strategy. Fed to repeat its commitment to "exceptionally low" rates for an extended period?
***Looking Ahead***Fed decision
- (PD) Polish Interest Rate Decision: 25bps cut to 3.50% expected (current Base Rate is 3.75%)
- 7:00 (US) MBA Mortgage Applications w/e Jun 19th: No expectations v -15.8% prior
- 8:30 (US) May Durable Goods Orders: -0.9%e v 1.9% prior, Durables ex Transportation: -0.5%e v 0.8% prior
- 9:30 (BR) Brazil May Current Account: -$1.14Be v $146M prior
- 10:00 (US) May New Home Sales: 360Ke v 352K prior, M/M: 2.3%e v 0.3% prior
- 11:30 (IT) ECB's Bini Smaghi speaks in Rome
- 13:00 (US) US to sell $35B in 5y Notes
- 14:15 (US) FOMC Rate Decision
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.