June 14, 2012
- in Uncategorized by schooloftrade
Jobless Claims in the US after downgrades bring the bears out in Europe
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The James’ Report: Day Trading Strategies for Professional Traders
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News from Around the Globe Overnight:
– Moody’s cuts Spain sovereign to lowest level of investment grade; new plan increases debt burden
– RBNZ leaves interest rates unchanged at 2.5% (as expected)
– Spain 10-yield hits fresh EMU record high as its tests 7.00%
– Italy auction results sees broadly higher yields but sells upper end of range
– SNB leaves interest rate unchanged and maintains EUR/CHF floor at 1.2000
– Key question for upcoming FMOC decision is whether economic growth is fast enough to make material progress in reducing unemployment
– Credit Agricole (Greece’s largest foreign ban) warned it would abandon operations in Greece if they leave the EMU
– PIMCO drops bunds from its portfolio. “Germany is losing quality due to conditional liabilities that are piling up on bunds”
– European equity indices have continued to trade mostly in negative territory (FTSE MIB in Italy underperforming), as Italy sold 2015, 2019 and 2020 bonds. European banks are currently trading mixed, as Spain’s 10-yr yield has hit a new record high above 7% (a level deemed by some to be unsustainable). In news related to Spanish banks, ECB data showed that institutions in the country have continued to increase their reliance on the central bank (Spain May ECB banks borrowing at record high €324.6B v €316.9B prior in April). Also, following yesterday’s close Spain’s Economy Ministry stated that there were no plans to liquidate any banks in the country. The comments came after EU official Almunia said that liquidating troubled banks was an option in certain cases. In terms of commodity related companies, most of the UK listed miners are trading lower (Xstrata -3.5%, Rio Tinto -2%), following cautious comments out of BHP regarding the outlook for commodity prices.
