MORNING BRIEFING : China Takes Center Stage

[RTFX-Trading]

MORNING BRIEFING :  China Takes Center Stage

What’s new :

Japan: S & P lowers rating on the national debt
Japan: slow deflation according to the Bank of Japan
Europe: The Greek loan raises enthusiasm
United States: Appointment of Mr. Bernanke very likely
France: Lagarde believes the increase in consumption will encourage recovery

Today:

Rates in Asia and Indices:

EURUSD: 1.4194 - 1.4073.
USDCHF: 1.0452 - 1.0368.
EURUSD: 1.6269 - 1.6192.
EURJPY: 128.37 - 126.12.
USDJPY: 90.55 - 89.56.
Dow Jones: 10'196 +0.23%.
NASDAQ: +0.25% 2'210.
S & P 500: 1'096 +0.46%.
Nikkei: -1.78% 10'325.
Shanghai: 3'036 -1.88%.
Gold: $ 1'094 .55.
Crude oil: $ 72.86

Comments:

The establishment of China's new rules on bank reserves, to reduce bank lending and control inflation weighs on Asian exchanges, while S & P cut to "negative" rating for Japanese loans. The YEN is limping along this morning against all currencies.
On the European front, the Greek loan (EUR 8 billion to 5 years) can not cope with demand being subscribed 4 times. This does not remove concerns caused by Greece, it has a refinance EUR 53 billion just for this year, which should keep some pressure on the Euro.
In the United States, the appointment of Mr. Bernanke for a second term as head of the Fed seems to reassure the markets and provide some support to the USD

Good day.

Pascal Bovay

RTFX Ltd
Trading desk

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