MORNING BRIEFING: In Berlin, leaders meeting on Greece

[RTFX-Trading]

MORNING BRIEFING: In Berlin, leaders meeting on Greece

What’s new :
United States: positive numbers for retail sales
United States: Employment figures in the United States at 14:30 CET
Great Britain: rate unchanged as expected
Greece: Success for the 10 years Greek bonds
Greece: General strike in the country in protest against austerity measures
Greece: PM : The country does not need financial assistance from Germany
Germany: Meeting of PMs in Berlin
Euro Zone: M. Trichet unfavorable to any IMF assistance for Greece
Euro area: Italian budget deficit in the spotlight
Japan: Rumors of a possible monetary policy easing
China: Monetary policy accommodative

Today:


Rates in Asia and Indices:
EURUSD: 1.3602 - 1.3568.
USDCHF: 1.0781 - 1.0753.
EURUSD: 1.5066 - 1.5021.
EURJPY: 121.39 - 120.89.
USDJPY: 89.35 - 88.98.
DowJones: 10'444 .14 +0.46%
Nasdaq: +0.51 ° 2'292 .31%
S & P 500: 1'122 .97 +0.37%
Nikkei: 10'368 .96 +2.20%
Shanghai: 3'037 .41 +0.46%
Gold: $ 1'133 .60
Crude Oil: $ 79.03
 
Comments:
With encouraging retail sales statistics and a reduction in weekly jobless claims in the United States, the market is now fixed on the publication at 14:30 CET of employment figures. Following the bad weather earlier this year, forecasts are for a decline in payroll jobs of 50,000, a figure well below could provide support for the USD.

In Britain yesterday, as anticipated, the Bank of England has kept interest rates unchanged.

The Greek loan over 10 years of 5 billion Euro was snatched yesterday on the bond markets, investors were encouraged by the rate of 6.25% offered.

Greek Prime Minister Mr. Papandreou reiterated that Greece did not require financial assistance from Germany. He is also scheduled to meet with German Chancellor Ms Merkel in Berlin today.

The boss of the European Central Bank Mr. Trichet spoke out against a possible request for assistance from Greece to the IMF, while Mr Juncker, President of the Euro group, says that Greece, following its plan consolidation should not need outside help.

Debt problems of Italy also arrive on the front stage. Third European economy after Germany and France, Italy has seen its budget deficit doubled last year, rising to 5.3%. If it is still far from the Greek 12.8%, or Spanish 11.4%, it remains largely beyond the rule of the EU of 3%. Beginning of a domino effect for Europe with Portugal and Ireland in the crosshairs after Italy and Spain, or unfounded fears of markets?

Rumors of easing monetary policy from the Bank of Japan propel the Nikkei this morning (up 2.20%), the USDJPY also regaining ground.

For his part in his annual address to parliament, Chinese Premier Wen reiterated that monetary policy would remain flexible, remaining cautious on the evolution of the global economy.

Good day

Pascal Bovay

RTFX Ltd
Trading desk
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