China’s urban fixed asset investment rose 32.9% in the first five months this year, more than the forecast of 31%.
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China Jan-May Urban fixed asset investment up 32.9%
June 11 2009, 6:16am | Comments »
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Regional share markets open up 0.5%
Both the Nikkei and the Kospi are up around 0.5% on the open.
June 10 2009, 3:04am | Comments »
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Eurogroup: Stimulus should be withdrawn as growth picks up
Central bankers and finance ministers in the eurozone agree that stimulus, whether monetary in the case of the ECB, or fiscal, in the case of the eurogroup, should be withdrawn as the economy recovers. The eurogroup says that it wants to see if the Latvian fiscal action is credible before releasing more aid. Spanish finance Minister Salgado rules out a US style stress test for Eurozone banks, but gave no reason as to why> Probably because they would flunk… Also crossing the wires are comments from ECB economist Stark. He says there is currently no need to act on monetary policy as rates are appropriate.
June 8 2009, 10:14pm | Comments »
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European Morning Wrap Up
Swiss May unemployment 3.4%, better than median forecast of 3.5% Euro zone sentix index rises to -27.o in June vs -34.3 in May, better than median forecast of -31.0. 9-month high. Junior Environment Minister Jane Kennedy resigns from UK government German crude steel output rose 5% m/m in May, biggest monthly increase since February 2006 Lithuanian FinMin: Pressures on currency peg from c/a deficit are dissipating S&P lowers Republic of Ireland sovereign debt rating to AA from AA+, outlook negative German April manufacturing orders flat m/m, in line with median forecast
The USD has continued where it left off Friday, seeing across the board strength this morning. The USD is being bolstered by surging treasury yields, anticipation of early-ish US official rate hike and a rise in risk aversion with stocks, oil, copper all down today. While the greenback prospers, the euro has come under increased across the board pressure. EUR/JPY is down at 136.40 from around 137.50, while EUR/GBP is down at .8730 from an early .8780. The euro has been hit by a number of factors, among them ongoing worries surrounding the Baltic states, aforementioned heightened risk aversion, deteriorating technical outlook, and the S&P downgrade of Ireland’s sovereign debt. EUR/USD started of around 1.3980 but was soon drifting lower. Sources reported buy orders lined up at 1.3900 and then 1.3885/90 (including China at this latter level) and they did absorb the selling pressure for awhile. But when the 21 dma at 1.3878 gave out sell stops were triggered accelerating the slippage. The release of better than expected euro zone sentix data (see above) did nothing to lift the pairing, which in itself was probably a good indicator of further losses to come. They duly came when the news hit the wires that S&P had lowered Ireland’s sovereign debt rating, sending the pairing quickly to a 1.3806 session lower before some recovery to 1.3845 at writing. Cable has given up about big figure on the day, presently at 1.5855. Political uncertainty surrounding PM Brown’s future continues to weigh, although the pairing took the news that Junior Environment Minister Jane Kennedy had resigned from the Goverment in it’s stride. USD/JPY has seen good interest from a US investment house to buy dips in the 98.20/30 area and we’re presently up at 98.55, a touch firmer on the day. High US yields will be lending the pairing good underpinning, despite the heightened risk aversion seen today which has tended to support the jpy as it’s safe haven premium comes into play.
June 8 2009, 2:00pm | Comments »
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