MORNING BRIEFING: The UAE central bank intervenes to help banks.

[RTFX-Trading]

MORNING BRIEFING: The UAE central bank intervenes to help banks.

What’s new:
UAE: The UAE central bank intervenes to help banks.
Abu Dhabi to the rescue of Dubai, however "case by case".
G7 discusses the implications of the problems in Dubai.
HSBC is the bank most exposed to debt in the UAE.
Japan's government and the BOJ will act together on the Yen.
Europeans urge China to make a move on the Yuan.

Today:


Rates in Asia and Indices:
EURUSD: 1.5084 - 1.4963.
USDCHF: 1.0075-0.9993.
EURUSD: 1.6593 - 1.6471.
EURJPY: 130.82 - 129.43.
USDJPY: 86.96 - 86.03.
Dow Jones: 10'309 -1.48%.
NASDAQ: 2'138 -1.73%.
S & P 500: 1,091 -1.72%.
Nikkei: 9'345 +2.91%.
Shanghai: 3'171+2.44%.
Gold: $1'169.75.
Crude oil: $76.15.

Comments:
Asian markets rebounded today, while the Central Bank of UAE is committed to support local and foreign banks operating in the region. This has calmed the fears of contagion. The Dubai episode shows that the current situation is fragile; the market is worried and wonders what the next nasty surprise is.

However, developments this weekend sparked a return of risk appetite and a falling US Dollar. The Euro is rising against the Dollar at 1.5047 after hitting 1.4828 on Friday morning, while the greenback is unchanged against the Yen. The US employment report expected Friday should play a major role in the overall market trend. Thursday the European Central Bank will hold its monetary policy meeting, after which it should, as planned, keep interest rates unchanged. Investors will be attentive to any signs of changes ahead of the monetary policy of the ECB.

Have a good day.

Nicolas Longchamp
RTFX Ltd
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