European Market Update: Greece debt concerns continue to weigh of European sentiment
Thursday, January 21, 2010
European Market Update: Greece debt concerns continue to weigh of European sentiment
*** ECONOMIC DATA *** - (RU) Russia Gold & Forex reserves w/e Jan 15th: $441.4B v $440.9B prior - (SZ) Swiss Dec M3 Money Supply Y/Y: 6.5% v 7.9% prior - (FR) France Jan Preliminary PMI Manufacturing: 54.7 v 54.7e; PMI Services: 57.0 v 59.0e - (DE) Denmark Jan Consumer Sentiment: +1.1v -1.0e (first positive reading since Dec 2007) - (NE) Netherlands Dec Unemployment Rate SA: 5.5% v 5.4%e - (NE) Netherlands Nov Consumer Spending Y/Y: -2.7% v -2.5% prior - (NE) Netherlands Jan Consumer Confidence SA: -10 v -10e - (GE) Germany Jan Advanced PMI Manufacturing: 53.4 v 52.9e; PMI Services: 51.2 v 53.0e - (HK) Hong Kong Dec CPI Composite Y/Y: 1.3% v 0.9%e - (EU) ECB Monthly Report: Mirrors ECB press conference from last Thursday (Jan 14th) - (EU) Euro-Zone Jan Advanced PMI Manufacturing: 52.0 v 51.9e; PMI Services: 52.3 v 53.8e; PMI Composite: 53.6 v 54.4e - (UK) Dec Preliminary M4 Money Supply M/M: -1.1% v 0.9%e; Y/Y: 6.4% v 8.9%e - (UK) Dec Public Finances (PSNCR): Â£23.6B v Â£25.5Be; Public Sector Net Borrowing: Â£15.7B v Â£19.0Be - (UK) Nov Major Banks Mortgage Approvals: 62K v 65Ke - (SZ) Swiss Jan ZEW Survey: 56.2 v 54.0 prior - (UK) Jan Industrial Trends Total orders: -39 v -42 prior - (IR) Ireland Dec PPI M/M: 0.5% v -0.1% prior; Y/Y: -3.8% v -6.5% prior - (IR) Ireland Nov Trade Balance: â‚¬2.6B v â‚¬2.9B prior
*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM *** - Equities: European equity markets opened well bid in an effort to come off yesterday's session low close. On the open, markets were broadly positive on the back of earnings from EasyJet [EZJ.UK], Ahold [AH.NV] and SSL International [SSL.UK]. Markets were further supported by defensive strength in Euro pharma names following a sector and individual positive calls from Morgan Stanley. Equities began a slow retracement of opening gains past 3:30EST with PMI reads disappointing expectations. PMI concerns mixed with further concern from China regarding tightening and mineral demand. This action sent miners lower with the weighted FTSE driving the lower rotation. EADs [EAD.FR] traded sharply lower through the session ahead of a scheduled meeting in Berlin that may be the final 'make or break' regarding the A400M. In upside moves, ThyssenKrupp [TKA.GE] stated Q1 operations were ahead of expectations and Siemens [SIE.GE] announced a large Chinese rail tech contract. On the regulation front, the EU has given the green light to a proposed Oracle [ORCL] buy of SunMicorosystems [JAVA]. Trading levels in the news heavy session have been high ahead of further US earnings, highlighted by financial sector name Goldman Sachs. -In equities: Sun [JAVA] EU clears Oracle's proposed acquisition of Sun Microsystems; EU approval is 'unconditional' . || Nokia [NOK1V.FH]: Exec: Confirms plans to offer new free navigation system on smartphones. || Morrison [MRW.UK]: Reports 6-week LFL +6.5% (+6.8% incl fuel). || Remy Cointreau [RCO.FR]: Reports Q3 Rev â‚¬226.9M v â‚¬232Me; LFL -0.9%. ||Ahold [AH.NV]: Reports Q4 Rev â‚¬6.8B v â‚¬6.6Be; Q4 operations were influenced by pricing declines and deflation. ||
- Speakers: Russia Central Bank (CBR) increased gold holding by 4% in Dec to 20.5M oz (valued at $22.4B). *** Greece Fin Min Papaconstaninou: Remains optimistic over current situation, Greek citizens support government's decision. The minister again denied that the EU was preparing a loan for Greece. He reiterated that Greece was not expecting any rescue package nor had asked for help. Greece will be able to cover its borrowings over the next few months *** Spain Dep Fin Min Ocana commented that Spain was committed to reducing its deficit by controlling spending. He added that no more large tax changes were expected *** The ECB monthly report mirrored the ECB press conference from lat Thursday. The report noted that the central bank would continue to gradually phase out of non-standard measures. It reiterated that the 1.00% refi rate was appropriate and that inflation was to remain subdued. Euro-Zone to expand at a modest pace this year with growth to fluctuate and to be uneven but overall risks to remain broadly balanced. It continued to reiterate that sharply increasing deficits risk higher interest rates. ***Bundesbank's Weber commented that the German economic upswing had shown signs of waning in momentum. He added that the 2010 deficit seen reaching 5% of GDP and only marginally lower in 2011. German growth in winter 2009/10 has been weak but that the recovery was intact. German budget deficit was mostly based on structural issues and that Germany must continue as fiscal role model for the EU. Tax cuts would require further cuts in spendingand he warmed of debt-financed tax cuts in Germany. If there was no budget consolidation then monetary policy could be tighter. Lastly he stressed that there must not allow any weakening of Maastrict Stability pact ***Greece Debt Agency head Papanicolaou stated that it had yet to make any debt issuance decision but would so within the near future. The agency noted it did have an interest in either a USD or JPY denominated bond issuance ***Indian Statistics Economist Sen : Q3 GDP may be negatively affected by farm output and could be between 6.0% to 6.5% range***China State Council reportedly had decided to cut over-capacity in power, coal and steel sectors
- Currencies: Chinese data provided additional risk aversion flows that again benefited the USD against the major pairs. Stronger than expected China inflation data fueled concerns that the PBOC may have to do more to stop its economy from overheating. The European peripherals also continued to weigh on the Euro sentiment. The EUR/USD pair tested below the 1.4050 level on Greek supply concerns. The Greece Debt Agency noted it would make an announcement in the coming days about its first bond issue for 2010. Market chatter was putting the issuance around $2.0B. The Greek 10-year spread against the Bund widened to a record +300bps. The stronger dollar prompted a retreat in commodities. Spot gold was briefly in positive territory after the Russian Central Bank noted it again added gold to its reserves in the month of December. As the NY morning approached the spot gold market was trading just above $1,100/oz level.
- Fixed Income: The market has experienced more than just a touch of indigestion in taking down a deluge of supply during the session, particularly with regards to peripheral markets. Spain sold â‚¬1.26B in 20yr bono's at a generous yield of 4.86%, while Greek 10yr spreads hit fresh wides at +300bps over Bunds with speculation and denial over the issuance of up to $2B in USD bonds. France's sale of â‚¬9B in 2,3 and 5 year BTAN's was more robust while the UK sold Â£3.25B in off the run 10y Gilts with a strong cover of 2.38x. Gilts have outperformed throughout the session following better than expected public finances and borrowing data for Dec. In corporates, Volkswagen is planning a 4 year Euro benchmark offering while Manchester United launched a Â£500M equivalent, 2 part $ and Â£ denominated offering
- Geo-Political: Following yesterday's Massachusetts special Senate election, US Pres (D) Obama has quickly moved to outline a forward moving plan for healthcare reform. In the absence of a super majority, Senate Dem's will not be able to drive through legislation and face filibuster threats. In several interviews, Obama has maintained support for reform, but more limited in scope and focused on consensus agreements. Notably, a push for universal or near universal coverage seems distant. US Sec of Defense Robert Gates, speaking in Pakistan, continues to highlight the threat to regional stability in South Asia and the wider world through al Qaeda and militant groups. Gates alluded to the possibility that Islamic forces may seek to stir controversy in an attempt to start an armed conflict between rivals India and Pakistan. The comments followed an isolated incident over the weekend in which Indian and Pakistani soldiers exchanged fire near a disputed border region. The UK has sought to ban direct flights to the country from Yemen in a further reaction to Decembers failed attack that has been linked to the troubled state. Yemen authorities have also halted the issuance of arrival visa's (visa's given at the point of arrival following flight) in an attempt to keep radicals out.
-Energy: The new Russian East Siberian Pac Ocean Pipeline (ESPO) has experienced a technical fault that led to the leak of approx 2.8K barrels of crude. Russian authorities say that crude is still flowing to Asian markets, but repairs to the system may take through May due to weather and conditions.
***Notes: - EU clears Oracle's proposed acquisition of Sun Microsystems; says deal will not harm competition - China's GDP data stokes speculation the central bank will start raising interest rates and reign in credit - European Peripheral concerns continue to weigh on Euro sentiment; To announce its first 2010 bond sale within the 'coming days'
***Looking Ahead: - US earnings season coming in focus. Goldman Sachs to report this morning. - 7:30 (BR) Brazil Dec Total Outstanding Loans (BRL): No est v 1.4B prior; Private bank Lending: No est v 815M prior - 8:00 (PD) Poland Dec Producer Prices M/M: -0.3%e v -0.3% prior; Y/Y: 2.2%e v 2.0% prior - 8:00 (PD) Poland Core Inflation M/M: No est v0.0% prior; Y/Y: 2.7%e v 2.8% prior - 8:00 (PD) Poland Dec Sold Industrial Output M/M: -1.0%e v -3.3% prior; Y/Y: 11.7%e v 9.8% prior - 8:30 (CA) Canada Nov Wholesale Sales M/M: 0.5%e v 0.3% prior - 8:30 (US) Initial Jobless Claims: 440Ke v 444K prior; Continuing Claims: 4.598Me v 4.596M prior - 9:00 (US) Nov RPX Composite 28-day Y/Y: No est v -7.46% prior - 9:00 - (PD) Poland Dec Budget Level (PLN): v -498.2M prior; Budget Level YTD: v -24.4B prior - 10::0 (US) Jan Philadelphia Fed: 18.0e v 20.4 prior - (US) Dec Leading Indicators: 0.7%e v 0.9% 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 LIVE to YOUR charts
Mon 27 May 2019 AAGB/US- Holiday Tue 28 May 2019 A 14:00 US- Consumer Confidence C 13:00 US- Case-Shiller Wed 29 May 2019 A 08:55 DE- Employment AA 18:00 US- BOC Decision A 18:30 US- EIA Crude Thu 30 Mar 2019 AAEZ/CH- Holiday A 12:30 US- Weekly Jobless Fri 31 Mar 2019 AA 10:00 EZ- Flash HICP A 12:30 US- Personal Income, Spending, Deflator AA 14:00 US- Final Univ of Michigan
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.
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.