MORNING BRIEFING: The markets are quiet, awaiting minutes from BoE’s MPC meeting.

[RTFX-Trading]

MORNING BRIEFING: The markets are quiet, awaiting minutes from BoE’s MPC meeting.

What’s new:
IMF: The global recovery has begun on a charge.
Australia: RBA said that confidence is back in the global financial system.
Wall Street: Rebounded following the encouraging results in the distribution sector.
United States: Producer prices decline 0.90% in July.
United States: Housing starts fall by 1.00% in July.
Germany: ZEW Economic sentiment index at its highest in 3 years.
United Kingdom: Inflation steady at 1.80% over a year in July.

Today:


Overnight Rates and Indices:
EURUSD: 1.4172 – 1.4108.
USDCHF: 1.0772 – 1.0727.
GBPUSD: 1.6594 – 1.6490.
EURJPY: 134.51 – 133.07.
USDJPY: 94.96 – 94.32.
DowJones: 9’217 +0.90%.
NASDAQ: 1’955 +1.30%.
S&P 500: 989 +1.01%.
Nikkei: 10’281 -0.04%.
Gold: $939.20
Crude Oil: $66.80.
 
Comments:

German investors’ morale and sentiment has improved significantly in the month of August, the most since April 2006. The publication of the ZEW index follows a series of encouraging reports from Europe’s largest economy. The outlook for activity is also rising; the index of the IFO in July showed its fourth consecutive increase.

Olivier Blanchard, a member of the IMF said the global economic recovery has begun, but the potential of global growth should be below its level before the financial crisis.

Renewed optimism in Germany associated with predicting the end of global financial crisis should prompt investors to seek riskier assets, the Australian and New Zealand Dollar, the Euro and the Pound should be supported, the US Dollar and Japanese Yen should be under pressure.

   
The Sterling is expected to be turbulent in the coming days with the Minutes from the Bank of England’s MPC Meeting, who had opted for an increase of £50 billion of its QE plan, will be published at 10h30CET. Retail sales expected tomorrow morning at 10h30CET and the speech by Fed President Ben Bernanke on Friday are also much awaited.

Good Day

Emman Xuereb
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
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