MORNING BRIEFING: Is Spain next after Greece?

[RTFX-Trading]

MORNING BRIEFING: Is Spain next after Greece?
    
What’s new?
Etats-Unis: Bons chiffres immobiliers pour avril
Chine-Etats-Unis: Progrès graduels dans les réformes de la politique des changes
Grande-Bretagne: GBP 6.2 milliards de coupes budgétaires
FMI: Inquiétudes sur l’économie espagnole
Espagne: Mouvements dans le monde bancaire
France: Relèvement de l’âge de la retraite à 60 ans
Japon: Les inquiétudes sur l’Euro pèsent sur le Nikkei

Today:


Overnight Rates and Indices:
EURUSD: 1.2372 - 1.2283.
USDCHF: 1.1622 - 1.1586.
GBPUSD: 1.4425 - 1.4336.
EURJPY: 111.71 – 110.46.
USDJPY: 90.30 – 89.87.
DowJones: 10'066.57 -1.24%
NASDAQ: 2'213.55 -0.69%
S & P 500: 1'073.65 -1.29%
Nikkei: 9'488.23 -2.77%
Shanghai 2'635.81 -1.41% 
Gold: $ 1'191.65
Crude Oil: $ 70.18

Comment:
The statistics of home sales in the US showed a 7.6% increase in April, rising partly due to termination at the end of May of tax benefits for new buyers. Nevertheless, analysts depict a return of buyer confidence and a stabilization of housing prices.

In Beijing, Chinese President Hu at the second strategic and economic rendezvous between the two superpowers has talked about gradual progress in reforming the policy of revaluation of the Yuan, welcomed remarks by US Treasury Secretary Geithner. Analysts said the Yuan is currently undervalued by 40%.

Examination of the reduction of GBP 6.2 billion in UK’s budgetary expenditures shows that the final amount of GBP 5.7 billion reduction represents less than 1%, will this be adequate to support the pound?

For its part, the IMF expressed concern about the malfunctioning of the labor market in Spain as well as problems in its banking system, while the Spanish property market situation remains very difficult.
Encouraged by the government, 4 Spanish savings banks could merge to strengthen their balance sheets, thus forming the fifth largest banking group in the country. Is Spain the start of a domino effect for Europe?

In France, the issue of retirement age should come before parliament. The increase of the limit to 60 years could trigger social reactions.

In Japan, worries triggered by the debt problems of the European budget, qualified by the Japanese finance minister as deeply rooted, has weighed on the Nikkei, which ended at its lowest since December 2009.

Good day
Pascal Bovay
Trading Desk
RTFX Ltd
Risk Disclaimer