MORNING BRIEFING: Investors cautiously eyeing Greece and Spain’s plans to raise liquidity; and waiting for more US corporate earnings

[RTFX-Trading]

MORNING BRIEFING: Investors cautiously eyeing Greece and Spain’s plans to raise liquidity; and waiting for more US corporate earnings

What’s new:
China: Confirms stance to keep tough property measures
AUD: Dragged by cautious markets
US: Corporate Earnings Season started late Monday
US indices: Modest gains at closing due to ‘wait and see’ mode
Euro Zone:  EFSF should be made available by this month, Slovakia lingers
EURO: Hesitant as Greece and Spain tap market liquidity again

Today:



Rates in Asia and Indices:
EURUSD: 1.2613 - 1.2543.
USDCHF: 1.0638- 1.0583.
GBPUSD: 1.5047 - 1.4965.
EURJPY: 112.08 – 111.16.
USDJPY: 88.87 – 88.47.
DowJones: 10’216.27 +0.18%
NASDAQ: 2'198.36 +0.09%
S & P 500: 1'078.75 +0.07%
Nikkei: 9’537.23 -0.11%
Shanghai: 2'459.83 -1.24%
Gold: $ 1'198.50
Crude Oil: $ 74.40

 
Comments:

Investors already concerned about a slowing Chinese economy, continued to drag Chinese equities lower earlier this morning on China’s confirmed stance to keep tough property measures. This weighed on the AUD and other high yielding currencies as investors preferred to be cautious. And although Alcoa’s strong quarterly results reflected positively in Asian indices China eventually weighed negatively on Asian markets.

Investors are increasingly on the look out to grasp some news that might alleviate investor pessimism on the global outlook – US corporate earnings could be a trigger. And although economic sentiment remains bearish in the eventuality that US corporate earnings might beat expectations has kept investors wary and careful not to go too short on the US Dollar.

US Indices were quite flat yesterday night as investors went on ‘wait and see’ mode, waiting for Alcoa results, but results only came out after trading hours explaining the very modest gains at US Closing yesterday.

Meanwhile as Finance Ministers met yesterday they indicated that the euro zone emergency loan facility should be available by this month – even though Slovakia has not as yet signed, because it is expected to discuss the issue in parliament next Wednesday.

European shares are expected to kick off well on the back of good corporate results from Alcoa, although China’s property stance may still weigh. The Euro seems hesitant as Greece and Spain tap liquidity markets again.  Greece is seeking to raise 1.25bln Euros through 6 month treasury bills, while Spain is aiming to raise between 2 to 3 Bln Euros in 15-yr bonds later this week.

Good day,


Rudolf Muscat
Trading desk

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