MORNING BRIEFING: FED Chairman Bernanke optimistic about a recovery in the global economy.

[RTFX-Trading]

MORNING BRIEFING: FED Chairman Bernanke optimistic about a recovery in the global economy.

What’s new:
United States: 81st US bank to fail this year.
United States: Bernanke optimistic about a recovery in the global economy.
United States: Bernanke declares that the economy has stabilized, but the recovery will be slow.
Euro zone: Trichet reluctant to speak of a return to normality.
United States: Rise in existing home sales.
Euro zone: PMI services better than expected.
Germany: Private sector is growing again in August.
France: Private sector is growing again in August.

Today:


Overnight Rates and Indices:
EURUSD: 1.4359 – 1.4322.
USDCHF: 1.0603 – 1.0564.
GBPUSD: 1.6545 – 1.6480.
EURJPY: 136.09 – 135.33.
USDJPY: 94.92 - 94.37.
DowJones: 9’505 +1.67%.
NASDAQ: 2’020 +1.59%.
S&P 500: 1’026 +1.86%.
Nikkei: 10’541 +2.97%.
Shanghai: 2’983 +0.76%.
Gold: $953.55.
Crude Oil: $74.18.

Comments:

Equity markets continue to show steady increases following the good figures in real estate from the United States Friday and remarks considered encouraging Friday by the Fed chairman, Ben Bernanke. Investors optimistic about the end of the financial crisis, renewing their appetite for risk, the EURJPY is up to 136, GBPJPY is at 156.60, the AUDJPY up to 79.60 and NZDJPY at 65.

Investors up until now have ignored the number of bankrupt banks in the United States. The authorities last week closed the Texan Guaranty Bank, Ebanks, Coweta and CapitalSouth Bank. The biggest bankruptcy in 2009 remains for the moment the Colonial Bank bankruptcy issued two weeks ago, which represented assets for $ 25 Billion.

    
This week, investors will examine the real estate and consumption figures from the United States to try to determine if the recovery started, and if Wall Street, which is at its the highest of the year, will continue its rally. My personal feeling is that the coming weeks are very important; a negative figure could lead to confusion over the expectations of economic recovery, which will cause a fall in ‘carry trades’.

Have a good week.

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