European Market Update: Markets react favorably to Basel III capital rules and Aug data out of China (TTN)
Monday, September 13, 2010
European Market Update: Markets react favorably to Basel III capital rules and Aug data out of China
****Economic Data**** - (EU) ECB: â‚¬1.0B borrowed in overnight loan facility v â‚¬620M; â‚¬49.1B parked in deposit facility v â‚¬40.5B prior - (FR) France July Current Account: -â‚¬2.2B V -â‚¬2.7B PRIOR - (SP) Spain July House Transactions y/y: 16.4% v 7.0% prior - (SZ) Swiss August Producer & Import Prices m/m: 0.1% v -0.1%e; y/y: 0.5% v 0.3%e - (NE) Netherlands July Trade Balance: â‚¬3.1B V â‚¬2.6B PRIOR - (CZ) Czech July Current Account (CZK): -32.5B V -13.0BE - (SW) Sweden August AMV Unemployment Rate: 4.8% V 4.8%E - (HK) Hong Kong Q2 Industrial Production Y/Y: 2.2% v 0.4% Prior; Producer Price Y/Y: 5.9% v 4.0% Prior
Fixed Income - (IT) Italy Debt Agency (Tesoro) sold total â‚¬5.5b in 5-yr and 40-yr bonds (as expected)
- Sells â‚¬3.5B in 3% 2015 BTPs; avg yield 2.69% v 2.63% prior, bid-to-cover 1.44x v 1.26x prior - Sells â‚¬2B in 5% 2040 BTPs; avg yield 4.80% v 5.08% prior, bid-to-cover 1.73x v 1.35x prior
Equities: - As of 6:05 AM EST, FTSE 100 +1.1% at 5,559, DAX +0.84% at 6,266 and CAC-40 +1.1% at 3,767.
- All European banks opened higher following the Basel III results which came in line with expectations. The leader was Credit Agricole trading at 5.6%. Deutsche Postbank [DPW.GE] slipped almost by 7% following confirmation that Deutsche Bank would use some proceeds of its rights issue of â‚¬9.8B to acquire the rest of the company - British food and retail group Associated British Food [ABF.UK] gave a positive outlook on its trading update and expected its adjusted operating profit to increase in H2. Company expected a growth of 6% in like-for-like sales for its discount clothing chain Primark. UK's Prudential gained almost 4% following M&A news. Press noted that a Chinese consortium led by Guangchangare was thought to be considering a stake in Prudential or making a bid for the Asian unit.
***SPEAKERS*** - (CH) China Premier Wen: Reiterates China to maintain "moderately loose" monetary policy; Reiterates to maintain continuity of macroeconomic policy controls; Global economy continues to face systemic risk; Risks related to local government financing have risen. - (CH) China Commerce Ministry Foreign Investment Dir-Gen Liu Yajun: Foreign Direct Investments (FDI) to surpass $100B this year v about $90B y/y - (CH) IMF's Zhu: Chinese economy not overhearing, overall economy is seeing soft landing; China is diversifying its forex reserves - (EU) ECB's Wellink: Banks need hundreds of billions after Basel III - (EU) ECB's Ordonez: Unveiling of Basel III removes uncertainty - (EU) ECB member Liikanen: New Basel III rules will not limit but rather support growth and recovery; Reforms are ambitious and will make the financial system more robust - (EU) EU's Rehn: The recovery is faster than projected during the Spring; notes signs of renewed tightening in lending to companies; Uncertainty related to fiscal consolidation could hurt confidence. - (FR) France Banking Federation: Basel III rules require a lot of effort from banks - (GE) German Banking Group (VOEB): Basel III transition period is not long enough and the rules ignore issues that are specific to Germany - (GE) Germany Engineering Group (VDMA) Doubles 2010 engineering production forecast to 6% from 3%, citing good new orders in recent months - (GR) Greece Fin Min Papaconstantinou: To lead a EU/ECB/IMF delegation to London this week so as to reassure investors Greece austerity is on track - FT - (IT) Italy PM Berlusconi: Certain that parliamentary majority will last; Industry Min to be appointed soon - IMF Strauss Kahn: World economy is not safe yet; Recovery may not create job growth
Currencies/Fixed Income: - European calendar was fairly quiet today the main event being the EU commission report. The commission raised the GDP growth forecast for the Eurozone to 1.7% from 0.9%. Germany's growth forecast almost tripled to 3.4% v 1.2% prior. EU commission noted strong growth in industrial exports was driving a faster than expected growth. Euro gained against the dollar sustained by the report but also by the strong China data and Basel III no-surprise agreement. - Cable recovered from its losses from Friday night following weak UK data and gained ground during the Asian session also buoyed by China's strong data. Pair was also sustained by M&A news from Prudential as a Chinese consortium was thought to be considering a stake in Prudential or making a bid for the Asian unit.
In the Papers-Geopolitical: - Over the weekend in Greece, about 20,000 people staged protests against the government's austerity measures in conjunction with Prime Minister Papandreou's annual address on the economy held in Thessaloniki. In addition, there are renewed fears of petrol shortages as thousands of drivers began new protest today against attempts by the government to liberalize their industry. - In Chinese press, the European Union and China have fundamentally agreed to develop their strategic partnerships. It is a possibility that there will be a bilateral pact during the China-EU summit in October. The feasibility of this will be addressed in an upcoming EU council meeting to discuss EU relations with strategic partners with special attention given to emerging countries in Asia. - Reflecting continuing economic difficulties, the Independent reported that more than half of Britain's largest firms plan to freeze salaries of top management for another year. Though referencing statements made by Deloitte did state that despite pay freezes large bonuses were still expected. Note that most executive were not given a pay increase in 2009.
**Observations*** - USD broadly weaker on rise in risk appetite following Aug data from China and B
***Looking Ahead*** - (CH) China Aug Actual Foreign Direct Investment (FDI) Y/Y: 25.0%e v 29.2% prior - (NO) Norway to Sell NOK6B in Treasury Bills - 08:00 (IC) Iceland Unemployment rate: No est v 7.5% prior - 8:30 (GE) Germany to Sell â‚¬5.0B in 6-Month BuBIlls - 9:00 (FR) France Debt Agency (ATF) to sell â‚¬8.5B in Bills - 10:00 (MX) Mexico July Industrial Production Y/Y: 6.8%e v 8.4% prior - 11:00 (US) Fed to Purchases Notes/Bonds - 14:00 (US) Aug Monthly Budget Statement: -$108.0Be v -$103.6B 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."
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.