- In equities news overnight: European bourses opened to the positive side following a sharply positive close out of Asian exchanges, most specifically within mainland China. Just at the open of trading (3:00EST), commentary from a Chinese Currency regulator within SAFE announced new FDI regulations. Amongst those new rules, lock up periods for FDI were cut and figures on ytd approved capital were released. On this data, the Hang Seng rallied sharply on what had been a relatively mild session. This appetite carried into US futures and European equities. Financials, miners and auto's showed the best gains on a mix of corporate news, sentiment and demand expectations. Individual news included electric car jv between Peugeot [UG.FR] and Mitsubishi [7211.JP], Daimler [DAI.GE] reaffirm cost cutting and operational levels, Areva [CEI.FR] announcing further interest in its T&D units and Rio Tinto's [RIO.UK] iron ore CEO commenting on on-going iron ore operations. Equities maintained their positive footing through the European morning on relatively solid volume levels. Markets continue to eye the US Aug nonfarm payroll release seen at 8:30EST and continue to position themselves ahead of that number.
-In individual equities: Rio Tinto [RIO.UK] Iron Ore CEO Walsh: Iron ore spot prices have eased to about $80/ton from $100 in early Aug; Price ease reflects China's steel price; Longer-term resources demand remains unchanged. Ore operations "running flat-out", at full capacity. || Peugeot [UG.FR] Mitsubishi Confirms Peugeot JV; Considering developing electric car for Euro markets. Vehicle to be based on Miev platform. Production seen beginning in Oct of 2010. Vehicle will be marketed under Peugeot-Citroen label. || Kloeckner [KCO.GE] Announces â‚¬200M (25% of market cap) capital hike; Seeking to place 20M no-par value shares. Proceeds from operations to be used for acquisitions and to cover internal capital needs. To increase share capital by â‚¬50M. || Daimler DAI.GE: CEO Zetsche: 2009 savings will significantly exceed â‚¬4B target - Bild. Sees continuation of difficult car market into 2010, have no plans for additional downsizing programs. States that due to size and market share of firm, will do better in 2010 than in 2009. || Alcatel Lucent [ALU.FR] Underwriters exercise over allotment option in convertible bond offer. Total issue size is increased to â‚¬999,999,999.29 corresponding to 309,597,523 OCEANEs. || Areva [CEI.FR] Reportedly CIC seeking to make investment in the firm -Les Echols. Reportedly firms are in talks for stake in T&D unit. Note: T&D unit is groups electrical transmission and distribution network. || Elan [ELN.IR] : US judge ruled that company breached Biogen TYSABRI agreement. Elan has until Sept 28 to remedy its breach of the agreement. || Royal Dutch Shell [RDSA.UK] S&P cuts ratings one notch to AA from AA+ (one notch cut); Outlook stable. || RBS/Lloyds [LLOY.UK] Bank along with RBS seeking to take stakes in companies that hold repossessed properties -Times. Article states that banks planning 'multi million pound' investment in property firms that specifically target buying distressed assets. || Deutsche Telecom [DTE.GE] In Discussions to sell T Mobile UK unit; Vodafone among possible suitors- FT. Reports Vodafone, France Telecom, and Telefonica of Spain are all interested in the unit. || K+S [SDF.GE] Reportedly strength in shares attributed to rumors of takeover interest/chatter. ||
- Speakers: ECB's Trichet commented in an TV interview that he saw increasing signs of economic stabilization but reiterated the view that it was too soon to call for end of economic crisis as uncertainty remained high. Thus he repeated yesterday's theme that the recovery would be uneven and there was no room for complacency. Trichet reiterated that ECB would not pre-commit to any action (interest rates or exit) but would act swiftly and decisively if necessary. ECB has exit strategy and would implement the plan into action when the appropriate time comes. Exit strategy did not include interest rate considerations. ECB has a set of criteria, which would decide its exit strategy path, but all information was not currently available. Policy tools are set to allow smooth exit. Broad money more relevant than liquidity; to exit when ECB liquidity hits broad money supply; when normal linked between liquidity and broad money resumes || ECB's Stark commented that unsustainable fiscal policy was an upside risk to price stability. Government and central bank coordination on exit strategy is not an option/ Stark echoed Trichet's comment that there were signs the global recession was bottoming out, but uncertainty remained high. Massive central bank and government steps had been effective. Exit strategy likely to be a main challenge to price stability || ECB Weber commented that global stimulus and interest rate cuts were unconventional measures to stabilizing financial markets and real economy . He noted that global recession was bottoming out and the strain in banking and financial markets were abating || IMF Strauss-Kahn stated that risk that stimulus withdrawal occurred too soon and jeopardize economic recovery remained. Economic recovery was fragile and could stall. A premature exit from accommodative monetary and fiscal policies were a principal concern. The IMF added that it continued to see the USD as unrivaled safe haven asset || China's Currency regulator SAFE announced new rules for foreign direct investment to attract medium and long term capital. SAFE cut the lock up period for foreign funds and insurers and raised QFII investment limit to $1.0B from $0.8B prior. The regulator noted that it had approved $15B for QFII program to date || Polish Government Advisor Boni commented that the upward spiral in public debt was difficult to manage and that State asset sales werekey to reducing borrowing levels. The advisor remained cautious and concerned regarding Poland's Q3 growth rate and saw Q3 GDP flat to +0.5% and growth overall should pick up modestly. The country's main dangers was public debt exceeding 55% of GDP and avoid a debt 'spiral' that would trigger austerity measures. || IMF's Lipsky commeted that the economic recovery needs to be ensured before exit strategies are implemented || Polish Central Banker Wasilewska-Trenkner commented that Polish Q3 GDP would 'not be worse' then Q2's pace of 1.1%. The banker reiterated that 2009 GDP was seen around 1% and Polish inflation at 2.5% by mid-2010 ||Turkey Central Bank sees volatility in inflation until H2 of 2010 due to base effect despite downward pressures || EBRD comented that Eastern European would see 'drawn out' recovery. The organization would revise its forecast for region with lower 2009 growth but higher 2010 GDP view
- In Currencies: Trade flows were scarce as market participants remained on the sidelines ahead of the U.S. Non-Farm Payroll data. The Euro did drift higher during the session aided by some potential M&A. Reportedly Chinese sovereign wealth fund CIC and Japan's Toshiba were studying possible investment in the France's Areva s T&D unit. Chatter that Potash might bid for Germany's K+S AG. | The weekly close in gold could hold the key to the USD price action. IMF continues to see the USD as the unrivaled safe haven asset
- In Fixed Income: Government Bonds were subject to moderate gyrations this morning as typically verbose commentary emanated from the ECB Watchers conference in Frankfurt. The ECB's Trichet ultimately continued to walk the fine line between outlining credible exit strategies and ensuring the market is firmly aware that said exit strategies are some distance away from being needed. With equities getting a lift, Bunds are yielding 3.265% in the cash market, about 2bps higher on the session. There seems to be a consensus in the market that today's pivotal non farm payrolls report, which is likely to dictate September ranges, will offer limited upside for sovereign debt. In an indication of just how far this rally for Treasuries has come, there are roughly 50bps between current yields in the 10y note and the August highs of 3.85% , following last months report. And 3.25%, probably the next key resistance for the US benchmark, was a level last touched in late May when the S&P 500 was below 900. In corporates, order books on a 15y benchmark offering from EDF are said to be in excess of â‚¬12B, with price talk of a yield of less than 100bps above midswaps
- In Energy: Mexico Energy Min commented that its country was mulling changes to its oil laws to emulate Brazil's state-controlled Petrobras || Petrobras [PBR] pushed back plan for oil exploration in the subsalt layer of the Jequitinhonha basin
- In commodities: Gold steady, still flirts with $1,000 level. The traders are watching the daily/weekly close this session for additional technical momentum. Gold bugs seeing potentially $300/oz move higher if all goes to plan.
- In the papers: ECB's Trichet writes in today's FT about the central bank's that ECB has exit strategy in place and the exit might require short-term interest rate moves . The article noted that several ECB special credit measures set to unwind naturally. ECB interest rate corridor allows short-term interest rates changes if continued credit support still needed.
*** NOTES ***
- Metal heads watching the weekly close in Gold with $980-990 level seen as key
- Lots of ECB talk in the session and echoing the recent ECB press conference. Unclear of the timing of exit strategy
- China will use CNY currency and not USD to purchase $50B worth of IMF bonds.
- China's Currency regulator SAFE announced new rules for foreign direct investment
- Fed's Fisher: "Praying" US jobless rate does not hit 10%
- IMF Strauss-Kahn: Risk that stimulus withdrawal occurs too soon and jeopardize economic recovery
- Focus on U.S. and Canadian payrolls ahead of US holiday
***Looking Ahead - all about the jobs
- 7:00 (CA) Canadian Aug Unemployment Rate: 8.8%e v 8.6% prior, Net change: -15.0Ke v -44.5K prior
- 8:30 (US) Aug Change in Non Farm Payrolls: -230Ke v -247K prior, Unemployment Rate: 9.5%e v 9.4% prior
- 8:30 (US) Change in Manufacturing Payrolls: -60Ke v -52K prior
- 8:30 (US) Average Hourly Earnings M/M: 0.1%e v 0.2% prior, Y/Y: 2.2%e v 2.5% prior; Average Weekly hours: 33.1e v 33.1 prior
- 9:30 (BR) Brazil Aug vehicle production: No estimates versus 281.6K prior
- 10:00 (CA) Canadian Aug Ivey Purchasing Managers Index: 54.5e v 51.8 prior
G-20 Finance ministers meet in London
- 15:30 (MX) Mexico Aug Consumer Confidence: 87.0 expected versus 85.4 prior
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.
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.