MORNING BRIEFING: Stocks continue to fall, the Dollar benefits.

[RTFX-Trading]

MORNING BRIEFING: Stocks continue to fall, the Dollar benefits.

What’s new:
Japan: 1.40% increase in industrial production in September.
United States: wealthy clients of UBS cited to appear in court.
China: the government could raise taxes on American cars.
Reuters poll: the ECB should keep rates at 1% until end 2010.
Germany: price stability over one year in October.
Germany: higher than expected import prices.
Oil: inventories of crude oil are rising less than expected.
United States: 3.60% decline in new housing in September.
Reuters poll: the BoE should increase “quantity easing” program.
United States: 1% increase in durable goods orders in September.
Swiss government summoned the Italian ambassador after raids.

Today:


Rates in Asia and Indices:
EURUSD: 1.4747 - 1.4683.
USDCHF: 1.0287 - 1.0244.
EURUSD: 1.6445 - 1.6339.
EURJPY: 133.74 - 132.80.
USDJPY: 91.80 - 91.07.
Dow Jones 9'762 -1.21%.
NASDAQ: 2'059 -2.67%.
S & P500: 1,042 -1.95%.
Nikkei: 9'891 -1.83%.
Shanghai: 2'971 -1.98%.
Gold: $1,032.
Crude oil: $77.26.
 
Comments:
Stocks fell sharply yesterday, leading to a sharp drop in "carry trades" or risk aversion, the Australian Dollar and the New Zealand Dollar have been targeted by investors, while the US Dollar and the Japanese Yen have been favored by investors. One reason is a further loss of market confidence in economic recovery, as evidenced by the unexpected decline in new homes sales in the United States.

The figure of the day is the US GDP for the third quarter 2009 at 13.30hrs CET. Some investors have revised their forecasts downward and a bad figure is expected, as it was the case last week in England. A decline trend of this week in stocks and carry trades and the US Dollar should continue to rise.

Good day.

Nicolas Longchamp
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com

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