European Market Update: Continental bourses hit 2009 highs - "it's the most wonderful time of the year"
Wednesday, December 23, 2009
European Market Update: Continental bourses hit 2009 highs - "it's the most wonderful time of the year"
- (GE) German Nov Import Price Index M/M: 0.4% v 0.3%e Y/Y: -5.0% v -5.2%e - (FR) French Nov Consumer Spending M/M:-0.1% v 0.5%e Y/Y: 3.2% v 3.3%e - (SP) Spanish Nov Producer Prices M/M: 0.0% v 0.1%e , Y/Y: -1.8% v -1.7%e - (NV) Netherlands Q3 Final GDP Q/Q: 0.5% v 0.4%e Y/Y: -3.7% v -3.7%e - (IT) Italian Consumer Confidence: 113.7 v 112.7e - (PD) Poland Nov Unemployment Rate: 11.4% v 11.5%e - (NO) Norwegian Oct Unemployment Rate (AKU): 3.2% v 3.2%e - (IT) Italian Oct Retail Sales M/M: 0.0% v 0.1%e, Y/Y: 0.5% v -1.8%e - (UK) BoE Mninutes: Unanimous vote to keep rates and QE on hold in Dec - (UK) BBA Loans for House Purchase: 44.7K v 43Ke - (SP) Spain Oct Total Housing Permits M/M: 14.8% v 59.7% prior, Y/Y: -36.1% v -41.7% prior
-In equities: In the last full day of trading ahead of the Christmas Holidays, equity markets in Europe are looking to continue a two day positive run. In trading today, both the DAX and CAC40 set new 2009 calendar year highs. This rotation followed the S&P closing Tuesday at a new year high and strong closes across Asia (ex Japan that was closed for Emperor's day holiday). As expected, trading in Europe has been light with the FTSE volume down as much as 60% from its average. All sectors on the EuroStoxx50 were in positive territory on little specific corporate news, but broader macro flows as the USD maintained its strength against the GBP, but eased in relation to the EUR. Commodity strength pushed resource names higher in a move that was furthered by commentary from ArcellorMittal [MT.NV] that it planned to acquire further iron ore mine assets in 2010 as it expected prices to continue rising. Tech names also showed outperformance, with Infineon [IFX.GE] continuing to trade higher after its surprise upside guidance in yesterdays session.
- In speakers: comments that may gain more attention after the holidays, the PBoC reaffirmed its commitment to maintaining a moderately loose monetary policy, adding that they would seek to make monetary policy more targeted and flexible. Chinese authorities also noted that they were seeking to expand the Yuan denominated settlement program.
-In individual equities: ArcellorMittal [MT.NV]: Plans to buy more mines in 2010 to raise its iron ore supply, anticipating recovery in iron ore prices. || Tesco [TSCO.UK]: Has become the first retailer to cut prices in the online Christmas sales war - Guardian. || BAE Systems [BA.UK]: Awarded Â£220M contract by French govt for 129 Viking armored vehicles - Times. || Siemens [SIE.GE]: Reportedly GVK is considering acquiring firms 40% stake in BangaloreAirport. || Heineken [HEIA.NV]: Have acquired remaining debt of Globe Group; Net debt reduced by â‚¬215M. ||
Currencies: Fx markets have been exceptionally quiet this morning with EUR/USD and USD/JPY largely unmoved from yesterday's New York close at the time of writing. The Swiss Franc has noticeably been subject to another bout of weakness. EUR/CHF has session lows below 1.4930 and the market is pondering whether the SNB's original Mar 12 intervention point of 1.4850 will be defended. Dealers noted chatter of a of KO option at 1.0510 in USD/CHF as an explanation for a failure of the pair to sustain a break above 1.0500 in yesterday's session. There was also speculation that corporate flows of the back of Swiss private commodity house Glencore's $2.2B convertible bond issuance had weighed on the currency. Sterlng has expereinced a choppy session, despite the BoE minutes revealing that the MPC's December decision to keep rates and QE on hold was unanimous - in line with market expectations.
Fixed Income: Volumes hqve been exceptionally thin in UST's with Tokyo out for Emeperor's Day but some bargain hunting by London desks has driven yields lower. The 10y Note has outperformed the rest of the curve with the yield down 1.5bps and back to 3.74%, while the the Bund yield is higher by roughly the same amount at 3.28%. The Greek 10y has shed another 4bps against the European benchmark to trade at +242bps while spain, Ireland and Italy have also firmed up against the core. Gilts have been the whipping boy of the session, with benchmark 10y yield has testing 5 month highs above 3.965%. A report in the Daily Mail suggesting a 25B increase to QE was likely in the new year has been largely ignore by Gilt and currency markets alike.
Geo-Political: 6 party talks including Russia, China, Britain, France, Germany and the US failed to set a deadline for presenting guidance to the UN regarding Iran. Further talks will be held in the second half of January, 2010 as Iranian Pres Ahmadinejad again dismissed calls for a year end agreement to swap uranium for nuclear fuel. China (PRC) and Taiwan (ROC) continued to ease towards normalization as further accords on economic issues were signed; agreements on free trade and intellectual property rights are planned for 2010. Saudi Arabia again claimed that its border conflict with rebels in Yemen was nearing an end; total casualties since Nov were put at 73. In Jamaica, an American Airlines 737 flight overshot its runway in heavy rain. All 150 passengers and crew are reported to have survived with 40 minor injuries reported
- In the Papers: Key themes in global news papers continue to focus on the US Health Care bill and the fallout from Copenhagen. In the US, the Washington Post cites an interview with Pres Obama stating that he still supports the bill and its final position. The last of three Senate votes on the bill remains scheduled for Christmas eve. UK and European news papers continue to focus on the role of China in disrupting/destroying the Copenhagen talks. A further spat of email and network issues from Canadian based Research in Motion, operator of BlackBerry have made headlines in the US and Canada.
- 7:00 (US) MBA Mortgage Applications w/e Dec 18th: No est v 0.3% prior - 8:00 (PD) Polish Central Bank Rate Decision: No change expected, current Base Rate is 3.50% - 8:30 (US) Nov Personal Income: 0.5%e v 0.2% prior, Personal Spending: 0.7%e v 0.7% prior - 8:30 (US) Nov PCE Core M/M: 0.1%e v 0.2% prior, Y/Y: 1.5%e v 1.4% prior - 8:30 (CA) Canadian Oct GDP M/M: 0.3%e v 0.4% prior - 10:00 (US) Dec Final U of Michigan Confidence: 73.8e v 73.4 prior - 10:00 (US) Nov New Home Sales: 438Ke v 430K prior, M/M: 1.7%e v 6.2% prior - 15:30 (MX) Mexico Nov unemployment Rate: 5.70%e v 5.94% 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.