European Market Update: European equities receive support from technology earnings out of the US (TTN)
Friday, September 17, 2010
European Market Update: European equities receive support from technology earnings out of the US
***Economic Data*** - (GE) Germany Aug Producer Prices M/M: 0.0% v 0.3%e; Y/Y: 3.2% v 3.5%e - (FI) Finland Aug Producer Prices M/M: 0.0% v 0.3% prior; Y/Y: 6.0% v 6.7% prior - (HU) Hungary Jul Avg Gross Wages Y/Y: 0.3% v 0.9%e - AS) Austria July Producer Price Index M/M: 0.4% v 0.5% prior; Y/Y: 4.2% v 3.5% prior - (IT) July Industrial Orders M/M: -3.0% V -0.4%E; Y/Y: 0.7% V 18.3%E - (IT) July Industrial Sales M/M: -2.7% v 3.6% prior; Y/Y: 8.9% v 16.1% prior - (EU) Euro Zone Current Account: -â‚¬3.8B v -â‚¬3.8b prior; Current Account nsa: â‚¬3.7b v â‚¬1.8b prior - (SP) Spain Jul Services Sector Sales Y/Y: -3.8% v +7.1% prior
Equities - As of 05:51 AM ET, FTSE100 +1.02%, CAC40 +1.26%, DAX +0.89% - Risk appetite remained strong in the European session after it returned to the markets yesterday at the US close and continued to prevail in the Asian session. Asian bullish sentiment drove major European equities higher as miners and bankers rallied. - In individual equities, newsflow was fairly light. UK energy firm Centrica [CAN.UK] rose 1% as it doubled its equity interest in Statfjord field in a Â£144M. The star performer of the FTSE100 was engineering group Invensys [ISYS.UK] rising 2.5% after signing a licensing agreement with Chinese company CSR, increasing its exposure to the Asian horsepower. Shares of 3i [III.UK] were in the red as company decided to merge its growth capital team with its buyout team causing its top deal-maker Jonathan Russell to leave the company. Also, Evolutions Securites downgraded firm from Add to Neutral which did not help the shares. - Dutch biotech company Crucell [CRX.NV] surged to 55% at the open after Johnson and Johnson said it was in advanced talks to buy the rest of Crucell's shares for $1.75B. Johnson&Johnson currently owns 17.9% of shares. - French supermarket retailer Carrefour [CA.FR] led European retailers after announcing it was planning to sell Dia hard discount unit. BNP Paribas upgraded company to Outperform from Neutral
***SPEAKERS*** - (EU) ECB's Weber: Sovereign default in Euro Zone will NOT happen; Economic situation looks more relaxed, though financial crisis is still with us - (EU) ECB's Nowotny: Inflation risks are stable now; Sees potential upside inflation risks but not material; Notes problems with banks addicted to ECB funding - (EU) EU's Almunia: Special banking measure will not be eliminated - (IR) Ireland Debt Agency (NTMA) to sell between â‚¬1.0-1.5B in 2014, 2018 IGB issues on 21st Sept - (IR) Ireland Junior Coalition party: Wants to keep fiscal adjustments in next year's budget at â‚¬3B - (JP) Moody's analyst Byrne: Reelection of PM Kan is credit positive; intervention is credit neutral for Japan; BoJ has more scope to expand balance sheet than the Fed does; Increasing the issuance of JGBs not necessarily negative if temporarily done. - (TU) Turkey Central Bank: Turkey still has not reached a permanent level in price stability - (UK) UK Chancellor Osborne: New actions by the govt have reduced Sterling market rates, representing a positive monetary stimulus; Current budget situation is different from the budget cuts of the 1980s; Return of sovereign credit risk is the biggest threat to European economies.
Currencies/Fixed Income: - The risk-on attitude continued to pressure the USD and the CHF while Euro and Sterling continue to rally. Dollar weakness continues to persist amidst renewed risk appetite and ahead of FOMC's next week meeting when the FED may restart its QE. Cable recovered brief losses from yesterday's retail data and is trading about 1.572. Inflation remains a concern for the Island despite dovish rhetoric from the BoE. In the Eurozone the calendar was fairly light with mostly low-impact data. German PPI printed weaker than expectations suggesting that inflationary pressures are contained and the ECB is unlikely to tighten its monetary policy. EUR/USD fell briefly after the data but quickly recovered and is currently trading at 1.315. Traders will be watching US CPI data expected at +0.3% which if stronger than expected may spark an upside in the dollar and reduce the probability of a QE operation. Gilts and Bunds continue to decline as stock markets rose.
In the Papers-Geopolitical - UK Business Secretary Cable said that punitive caps on non-EU workers resulted in companies moving operations abroad. Note that restricting immigrants was among David Cameron's campaign promises. As a result of these shortages, companies cannot fill the jobs required now that the economy is recovering. - According to the Financial Times, citing regulators and industry analysts', impact from recent Basel III rules could be 30% tougher than what was initially suggested by data. Further, the banks will have to subtract items such as goodwill, tax credits and minority investments from equity and retained earnings. The aim is to make this key measure of capital reflect the equity that would be available to absorb losses in a crisis. The data suggests the real impact of changes would raise the minimum capital requirement to 10% from 2% for many banks rather than 7% stated.
***Notes/Observations*** - Broad USD weakness: EUR/USD hits 1-month high; AUD/USD hits 2-yr high; US dollar index hits 5-week low - Spot Gold hits fresh record high above $1,280/oz, silver hit levels not seen since March 2008 - Swiss Franc continues to be weak after yesterday's SNB rate decision; EUR/CHF hits 1-month high, GBP/CHF briefly traded above 1.6000 - EUR/GBP continues to trade near 0.8390 - Spread between Irish and Germany 10-yr yields widen on session, despite improvement in risk appetite - Agricultural commodities are mostly higher - Equities in China end the week lower by more than 2% on policy tightening concerns.
*** Looking ahead*** - 7:00 (BR) Brazil Sept FGV Inflation IGP-10 M/M: 1.2%e v 0.5% prior - 7:30 (IN) India weekly Forex reserves - 8:00 (PD) Poland Aug Producer Prices M/M: -0.1%e v 0.3% prior; Y/Y: 4.2%e v 3.9% prior - 8:00 (PD) Poland Aug Sold Industrial Output M/M: -1.6%e v -6.1% prior; Y/Y: 13.3%e v 10.3% prior - 8:30 (US) Aug Consumer Price Index M/M: 0.3%e v 0.3% prior; CPI Ex Food & Energy M/M: 0.1%e v 0.1% prior; CPI NSA: 218.324e v 218.011 prior - 9:00 (BE) Belgium Sept Consumer Confidence: No est v -4.0 prior - 9:55 (US) Sept Preliminary University of Michigan Confidence: 70.0e v 68.9 prior - 15:00 (AR) Argentina Q2 Quarterly GDP: 11.0%e v 6.8% prior; Current Account Balance: $331M v -$365M prior - 17:00 (CO) Colombia July Industrial Production Y/Y: 8.0%e v 8.5% prior - 17:00 (CO) Colombia July Retail Sales Y/Y: 14.01%e v 15.4% 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."
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.