European Market Update: Risk Appetite continues to find footing (Trade the News)
Friday, June 11, 2010
European Market Update: Risk Appetite continues to find footing
***Economic Data*** - (IN) India Apr Industrial Production Y/Y: 17.6% v 14.3%e - (GE) Germany May Wholesale Price Index M/M: 0.3% v 0.2%e; Y/Y: 6.2% v 6.1%e - (FR) France May Consumer Price Index M/M: 0.1% v 0.2%e; Y/Y: 1.6% v 1.7%e - (FR) France May CPI - EU Harmonized M/M: 0.1% v 0.1%e; Y/Y: 1,9% v 1.9%e; CPI Ex Tobacco Index: 120.04 v 120.11e - (FR) France Apr Current Account : -â‚¬3.5B v -â‚¬4.5B prior - (HU) Hungary May Consumer Prices M/M: 0.9% v 0.8%e; Y/Y: 5.1% v 5.2%e - (HU) Hungary Apr Final Industrial Output M/M: 1.1% v 1.1% prior; Y/Y: 9.7% v 9.7% prior - (SP) Spain May Consumer Price Index M/M: 0.2% v 0.1%e; Y/Y: 1.8% v 1.7%e - (SP) Spain May Core CPI M/M: 0.2% v 0.0%e; Y/Y: 0.2% v -0.1%e - (SP) Spain May CPI EU Harmonized M/M: 0.2% v 0.1%e; Y/Y: 1.8% v 1.8%e - (TU) Turkey Apr Current Account (TRY): -4.4B v -4.4Be - (UK) BOE Quarterly Inflation Attitudes Survey: 1 Year CPI expectations: 3.3% v 2.5% prior; Highest reading since Aug 2008 - (UK) May PPI Input M/M: -0.6% v -1.0%e; Y/Y: 11.2% v 10.7%e - (UK) May PPI Ouput M/M: 0.3% v 0.5%e; Y/Y: 5.7% v 5.8%e - (UK) PPI Output Core M/M: 0.1% v 0.4%e; Y/Y: 4.4% v 4.7%e - (UK) Apr Industrial Production M/M: -0.4% v 0.4%e; Y/Y: 2.1% v 2.2%e - (UK) Apr Manufacturing Production M/M: -0.4% v 0.5%e; Y/Y: 3.4% v 3.8%e
Fixed income Auctions: - (IT) Italy Bond auction: Sold total of â‚¬7B in three tranches (as expected) - Sold â‚¬4B in new 3% 2015 BTPs; avg yield 2.91%; Bid-to-cover: 1,3x v 1.4x prior - Sold â‚¬1.74B in 4% 2017 BTPs; avg yield 3.32%; Bid-to-cover: 1.8x v 1.5x prior - Sold â‚¬1.26B in 4% 2037 BTPs; avg yield 4.91%; Bid-to-cover: 1.9x v 1.5x prior - (IR) Ireland Debt Agency (NTMA) set the size of its Jun 15th IGB offering between â‚¬1B to â‚¬1.5B
*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM *** - Equities: Equities in Europe opened the session higher by less than 1%, tracking yesterday's gains in US equities. Factors supporting the markets include sharp gains in shares of BP, comments from Spain Santander's shareholders meeting and the Italian government's bond auctions. Additionally, Spain's Economic Minister denied that his country had requested aid from the EU.
- In Individual Stocks: Fraport [FRA.GE]: Reported passenger volume increased at 7.1% y/y and group passeneger volume increased 14% y/y. || Buckeye Partners [BGH]: Buckeye Partners, L.P. and Buckeye GP Holdings L.P. announced merger agreement. Under the terms of the agreement, BGH unitholders would receive 0.705 BPL limited partnership units in exchange for each BGH limited partnership unit owned at closing || Fuller Smith & Turne [FSTA.UK] Reported FY ajd profit and Revenues at Â£26.6M and Â£227.7M, respectively, both comparing favorably to year-ago figures of Â£22.8M and Â£210M. Remained very cautious on UK economy outlook.|| K+S [SDF.GE]: Raised prices for granulated potash by â‚¬8 or 2.7% to â‚¬305/ton.This is the second time that the company raised prices this year. Remained positive on demand in Europe. || Banco Sabadell [SAB.SP] Confirmed press speculation on merger with Guipuzcoano and stated it was studying merger. Guipuzcoano is based in Spain's Basque country, has â‚¬10.34B in assets and a market capitalization of â‚¬799M. ||Santander [SAN.SP]: Guided FY10 earnings flat y/y. Company had reported FY09 Net â‚¬8.94B, Rev â‚¬39.4B. Expected 2010 to be difficult but was very positive on medium term prospects. Saw growth driven by emerging markets in the coming years.
- Speakers: ECB's Stark commented that there were no alternatives to the euro currency and labeled the current crisis as one of a sovereign debt nature and not about the euro itself. He stated that there has been a crisis of a loss of confidence in fiscal policies and have now entered a new phase of global crisis. He stressed that the debt crisis was not only limited to euro region and that the recent tensions in sovereign debt markets were a test. Alternatives for the euro lead would 'go nowhere'. He reiterated that the ECB delivered on its mandate and that Inflation was very well anchored in Euro Area. Greece austerity measures were credible and the rating agencies downgrade of Greece was not justified ***ECB's Draghi commented that markets were beginning to understand that the euro was here to stay and not possible to go back ***ECB's Wellink reiterated the central bank view that public budgets were stretched and consolidation was necessary. He added that the global economy was at a critical crossroad ***ECB's Tumpel-Gugerell added to the chorus that Greece was moving in the right direction *** Spain Econ Min Campa commented that Spain had not made any request to the EU for possible Aid *** German Govt: No signs that Spain needs to tap â‚¬750M EU rescue fund. German Govt also stated that there were no signs that Spain needs to tap â‚¬750B EU rescue fund ***Austria Fin Min Proell stated that he was certain that euro currency would continue to play 'strong role' *** Iran Pres Ahmadinejad stated that the UN Security Council was a 'tool' for the US and added that the recently passed resolution illustrated the weakness of sponsoring nations and did not have legal value. *** Germany's Bundesbank revised Germany's 2010 GDP forecast higher to 1.9% from its 1.6% prior view. It also tweaked the 2010 GDP forecast to 1.4% growth from 1.2% prior. It noted that the 2011 GDP would weaken due to fiscal tightening. It reiterated the view that it saw modest domestic price pressures and that commodity prices were the main risk to CPI forecast. Jobless may still rise but labor market was resilient. It forecasted 2010 German unemployment at 3.3M and at 3.4M in 2011. It put the 2011 jobless rate at 8.0% ***EU's Barroso stated that he did not believe that there was a conspiracy against the euro
- Currencies/Fixed Income: The USD and JPY maintained a consolidative tone in the session and little changed from the opening levels seen in Asia with dealers noting the dollar pausing after its recently 'stretched' levels achieved in recent weeks. Overall dealers are noting that equities seem supportive in tone after testing recent key support levels while the European bond spreads continue to narrow after successive auction in the latter part of the weeks. The EUR/USD holding above the 1.21 level but talk of option-related flows capping the 1.2150 area for the time being. GBP was softer on weaker production data and retraced from 19-month highs against the Euro after testing 0.8212 in the cross earlier in the session
- Geo-Political: UK press reported Sir Peter Gershon, the efficiency advisor to the government, raised doubts to whether or not it will be possible to make all of the planned government spending cuts as planned by next April. Sir Peter helped advise the Conservative party in its proposed plan in spending cuts. ***George Soros addressed the Institute of International Finance in Austria on the financial crisis. He said that a double dip recession cannot be ruled out and that we are in a situation similar to that of the 1930s. He goes on to say that the crisis has only entered the 'middle stage' with sovereign debt concerns to become global in scope. ***Poland's parliament approved Marek Belka as new Central Bank Chief. He is to replace the former head of the central bank Skrzypek after being fatally involved in an airliner crash back in April. The result of the approval in the Lower house was 253 to 184 votes in favor. ***According to a Wall Street Journal article, firms in the US increased cash positions to record levels. The high levels of cash could be a reflection of worries about financial markets and how stable the recovery is proceeding. Nonfinancial companies held about $1.84T in cash and liquid assets at the end of March. This is a gain of 26% y/y, the biggest rise since at least 1952. In addition, on May 27th the Journal made similar comments stating that Banks in Europe are starting to hoard cash. ***Australia Prime Minister Rudd reaffirmed commitments to 40% rate of mining tax. He is to continue talks with the mining industry, which may take weeks or months.
***Notes/Observations: - World Cup starts in South Africa!!! - Asian equities build on recent rise in risk appetite and Europe follows - Japan PM Kan: Japan risks default if fiscal problems are left neglected - China inflation accelerates +3.1% v +3.0e. - China Stats Bureau: reiterates China can reach 2010 CPI target of 3%; Euro Zone crisis helps ease inflationary pressures.
***Looking Ahead*** - 8:00 (IC) Iceland May Unemployment Rate: no est v 9.0% prior - 8:00 (GE) German Chancellor Merkle, Fin Min Schaeuble - 8:20 (US) Fed's Plosser speaks on economic outlook - 8:30 (CA) Canada Q1 Capacity Utilization Rate: 73.2%e v 70.9% prior - 8:30 (US) May Advance Retail Sales: 0.1%e v 0.4% prior; ; Less Autos: 0.2%e v 0.4% prior; Retail Sales Ex Auto & Gas: 0.2%e v 0.4% prior - 9:55 (US) Jun Preliminary University of Michigan Confidence: 74.5e v 73.6 prior - 10:00 (MX) Mexico Mar Gross Fixed Investment: 0.2%e v -2.3% prior - 10:00 (MX) Mexico Apr Industrial Production /Y: 8.2% v 7.6% prior - 10:00 (US) Apr Business Inventories: 0.5%e v 0.45 prior - 10:00 (UK) May NIESR GDP Estimate: No est v 0.5% prior - 10:00 (GE) German Chancellor Merkle speech to CDU party members -12:00 (US) Fed's Kocherlakota speaks on economy - 13:00 (EU) EU's Barroso meets German Chancellor Merkle in Berlin - 15:00 (AR) Argentina May Consumer Price Index M/M: 0.7%e v 0.8% prior; Y/Y: 10.6%e v 10.2% prior - 15:00 (AR) Argentina May Wholesale Price Index M/M: No est v 1.0% prior; Y/Y: No est v 14.5% prior - (CO) Colombia Central Bank Monetary Policy Minutes
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."
Actionable trading levels delivered to YOUR charts in real-time.
Tue 17 July 2018 AA 08:30 GB- Employment A 13:15 US- Industrial Production AA 14:00 US-Powell Testimony Wed 18 July 2018 AA 08:30 GB- CPI A 12:30 US- Housing Starts/Permits AA 14:00 US-Powell Testimony Thu 19 July 2018 AA 1:30 AU- Employment AA 08:30 GB- Retail Sales A 14:30 US- EIA Crude A 12:30 US- Weekly Jobless Fri 20 Jun 2018 A 12:30 CA- CPI/Retail Sales
John M. Bland, MBA co-founding Partner, Global-View.com
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
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.