MORNING BRIEFING: Speculations about European aid to Greece

[RTFX-Trading]

MORNING BRIEFING: Speculations about European aid to Greece

What’s new:
United States: Wall Street - Best performance in three months
Great Britain: Good GDP statistics for the fourth quarter 2009
Great Britain: Political uncertainties weighing on the pound
Euro Area: The European Commissioner for Economic Affairs in Athens
Euro Area: New measures of austerity in Greece?
Euro zone: Meeting of the European Central Bank next Thursday
Precious metals: Gold at its highest since a week

Today:


Rates in Asia and Indices:
EURUSD: 1.3650 - 1.3591.
USDCHF: 1.0762 - 1.0735.
GBPUSD: 1.5204 - 1.5130.
EURJPY: 121.57 - 121.09.
USDJPY: 89.26 - 88.22.
DowJones: 10'325.26 +0.04%
Nasdaq: 2'238.26 +0.18%
S & P 500: 1'104.49 +0.14%
Nikkei: 10'172.06 +0.45%
Shanghai: 3,086.77 +1.14%  
Gold: $1'118.30
Crude Oil: $78.15
 
Comments:
Following the publication of the annualized US GDP for 2009 (revised upward to 5.9%) the New York Stock Exchange finished higher, with its best performance in three months.

In Britain, despite favorable GDP figures for the economy released on Friday, a poll on voting intentions of English citizens (published on Sunday) sent again the GBP to the mat. The Pound reached its lowest since May 2009 against USD and JPY in one year. The survey shows that after the next election in Britain, the Labor Party would have a slim majority in parliament, leaving the government in a difficult position to govern.

M. Rehn, the European Commissioner for Economic Affairs, is expected in Athens today, causing much speculation about possible emergency aid amounting to 20 to 25 billion Euros. This assistance could be translated into Greek purchases of bonds through public banks in Germany and France.
In Greece on Sunday Mrs. Katseli, Greek Minister of Finance, announced that the Greek government would take further austerity measures.

At its next meeting on Thursday, on 4th March the European Central Bank should publish details of its gradual withdrawal of support to the economy and markets expect no movement on rates.

Supported by economic fears as well as by growing industrial demand, gold seems on its way to continue its upward movement.

Good day

Pascal Bovay

RTFX Ltd
Trading desk
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