Tokyo Stock market falls 4.53%, G20, ECB.

[RTFX-Trading]

What’s new:
Unites States: The Automobile Task force rejects plans by GM and Chrysler
Japan: In sharp decline after decision to reject by Automobile Task force
Japan: Decline in production, signs of recovery are emerging
Financial Times: G20 expects a resumption of growth next year
Obama: Seeing signs of economic stabilization

Today:

11h00 Euro zone: Business Climate Indicator, exp -3.5, previous -3.5
11h00 Euro zone: Consumer Confidence, exp -33, previous -33

Overnight ranges and indices:

EURUSD: 1.3286 – 1.3181
USDCHF: 1.1498 – 1.1441
GBPUSD: 1.4298 – 1.4163
USDJPY: 98.32 – 96.55
DowJones: 7776 -1.0%
NASDAQ: 1545 -4.53%
Gold: $924
Crude Oil: $51.24

Comment:

The Japanese Stock Market fell 4,53% this morning, the largest percentage fall in over two months. The team of senior financial officials appointed by President Obama to manage the crisis in the automotive sector yesterday rejected new requests for public lending of General Motors and Chrysler. It is therefore a possibility that GM files for bankruptcy. The Spanish government forked out a total of 9 billion Euros to save the country’s premier bank, Caja Castilla La Mancha. This uncertainty should weigh in on “Carry Trades”.

This week, apart from the G20 and the employment report Friday, there is much expectation for the ECB’s decision on Thursday. The market waits impatiently to know whether the ECB will continue the current trend in quantitative easing. The problems in Spain (see above) and Germany (Hypo Real Estate)are increasing the pressure on the ECB.

Good Day

Nicolas Longchamp
RTFX Ltd
Head Of Trading desk.
Level 2, Suite 2, The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta