MORNING BRIEFING: Spain in the footsteps of Greece?

[RTFX-Trading]

MORNING BRIEFING: Spain in the footsteps of Greece?

What’s new :
Great Britain: A New Role for the BoE
USA: BP accepts the establishment of a fund of USD 20 billion
Euro zone: Leaders Meeting
Spain: borrowing costs rising
France: Retirement age pushed to 62 years
Switzerland: SNB left its rates unchanged at 0.25%

Today:


Rates in Asia and Indices:
EURUSD: 1.2315 - 1.2256.
USDCHF: 1.1321- 1.1301.
GBPUSD: 1.4737 - 1.4684.
EURJPY: 112.61 – 111.85.
USDJPY: 91.44 – 91.19.
DowJones: 10'409.46 +0.05%
NASDAQ: 2'305.93 +0.00%
S & P 500: 1'114.61 -0.06%
Nikkei: 10’003.24 -0.63%
Shanghai: 2’568.35 -0.06%
Gold: $ 1’233.50
Crude Oil: $ 77.92

Comments:
With the return of financial supervision in the lap of the Bank of England (BoE), the Chancellor of the Exchequer Mr Osborne has announced new measures to control financial markets. The pound sterling situation: the provenance of the 20 billion USD of coverage promised by BP after the oil disaster of the Gulf of Mexico is not yet established.

At their meeting today in Brussels, on the side lines of their discussions on budgetary discipline and coordination of economic policies, the EU leaders will also seek to reassure markets. With a large bond auction today, Spain has seen its borrowing costs yesterday again on the rise, the markets fearing Spain follow the path of Greece. The gap between German and Spanish government bonds rates reached yesterday a new historical high.

France has announced the introduction of measures to increase the retirement age from 60 years to 62 years. This will certainly cause many reactions of the powerful French unions.

At its meeting this morning, the Swiss National Bank left its benchmark rate unchanged at 0.25%, while revising upward its forecasts for inflation and GDP for Switzerland. However, no change in the policy of the SNB intervention to prevent the rise of CHF is expected, although a likely adjustment in the central bank's objectives for the EURCHF pair is expected, a level of around 1.38 seems currently more likely to defend.

Have a good day

Pascal Bovay

RTFX Ltd
Trading desk
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