MORNING BRIEFING: ECB and BOE meetings today

[RTFX-Trading]

MORNING BRIEFING: ECB and BOE meetings today
    
What’s new:
United States: Wall Street shoots up!
Central Banks: ECB and BOE meetings today
Euro zone: Bank tests performed on 65% of total assets
Euro zone: No salvation outside the EU, ING
Euro zone: Agreement in the European Parliament on bonuses
IMF: Revised upwards its growth forecast
Japan: Decline in machine orders

Today:


Overnight Rates & Indices:
EURUSD: 1.2687 - 1.2620.
USDCHF: 1.0528- 1.0481.
GBPUSD: 1.5228 - 1.5171.
EURJPY: 112.01 – 110.72.
USDJPY: 88.46 – 87.66.
DowJones: 10’018.28 +2.82%
NASDAQ: 2’159.47 +3.13%
S & P 500: 1'060.27 +3.13%
Nikkei: 9'506.46 +2.44%
Shanghai: 2'413.70 -0.31%
Crude Oil: $ 1'203.65
Gold: $ 73.90

Comment:

While awaiting the financial results of companies from the second quarter, US equity markets finished sharply higher yesterday, driving the Nikkei this morning in their wake.

No rate change is expected from the European Central Bank and Royal Bank of England, at their monthly meeting on rates today.

With the publication of the names of the 91 banks involved in the tests, which represent 65% of total assets held by European institutions, a larger sample than expected, the supervisory committee has temporarily reassured markets, the EUR is stabilized above 1.26 against the USD. The results of these tests are expected by July 23.

In a study published yesterday, the bank ING Holland highlighted the serious risks to the global economy in case of disintegration of the euro area, implying that Europe has no choice but to keep the single currency at any cost.

The European Parliament has reached an agreement on the payment of bonuses to executives and traders of European banks of 27 European countries this year. These new rules could have a smaller impact on hedge funds.

In its latest publication this morning, the IMF revised from 4.2% to 4.6% its forecast for global growth in 2010 thanks to robust growth in Asia and the return of consumer demand in the United States; they nevertheless stressed the risk posed by European fiscal crisis in the global recovery.

Japanese Machine Orders for May recorded their largest drop since May 2008, at -9.1%, suggesting a return to prudent business in response to signs of slower global economic recovery.

Good Day,

Pascal Bovay
Trading Desk
RTFX Ltd
Risk Disclaimer