MORNING BRIEFING: European stock markets suffering

[RTFX-Trading]

MORNING BRIEFING: European stock markets suffering

What’s new :
United States: Bernanke says FED’s goal for inflation is 2%
Eurozone: Euro overvalued for too long, as per OECD
Eurozone: Fears over health of European banks
Germany: Extension of short sales bans?
Italy: Austerity plan approved
World: Escalation of tension in Korea?

Today:


Rates in Asia and Indices:
EURUSD: 1.2388 - 1.2271.
USDCHF: 1.1618 - 1.1519.
GBPUSD: 1.4449 - 1.4356.
EURJPY: 111.98 - 110.49.
USDJPY: 90.49 - 90.00.
DowJones: 10'043.75 -0.23%
NASDAQ: 2'210.95 -0.12%
S & P 500: 1'074.03 +0.04%
Nikkei: 9'548.31 +0.93%
Shanghai: 2'629.32 +0.26%
Gold: $ 1'205.50
Crude Oil: $ 69.81

Comments:
On a visit to Japan, the Fed chairman Ben Bernanke has confirmed its objectives for inflation to remain stable at 2%, indicating that the Fed’s economic policy did not need adjustment.

In an interview with Le Figaro, OECD chief economist said that "the Euro was overvalued for too long ', adding that it would be desirable to have other monetary adjustments, especially the Yuan. He also dismissed the risk of double dip recession in the Euro Zone.

While the choice of security by investors yesterday weighed on the European stock exchanges, the strength of the European banking system is back on the front stage and fears that the problems of over-indebted nations of the Euro Zone will injury the banking systems resurface.

A week after the introduction of certain restrictions on short selling by Germany, the Finance Ministry puts forward new proposals for bans on foreign currency derivatives. If the authorities' desire to better monitor financial market volatility is understandable, it appears that measures taken so far have contributed more to increase the volatility than to calm it down!

Latest Euro Zone countries to join the 'train of austerity' is Italy, Italy yesterday approved a plan of measures to reduce state spending for 24 billion Euros.

The United States gave their full support to South Korea in the current development of North-South conflict, but the situation in North Korea should encourage 'safe heaven "option!

Have a good day

Pascal Bovay

RTFX Ltd
Trading desk
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