MORNING BRIEFING: Markets increasing appetite for risk

[RTFX-Trading]

MORNING BRIEFING: Markets increasing appetite for risk

What’s new:
Asia: Equity Indices start in the Green
United States: Intel reports profits and a surge in Sales
EURO: Defends its gains this morning
GBP: Consolidates further gains on the back of increased expectations for employment figures today
ECB:  Lower values seen in Securities Market Program interventions – indicative of improving debt markets
United States: Trade Deficit rises to an 18-month high

Today:

Rates in Asia and Indices:
EURUSD: 1.2734 - 1.2691.
USDCHF: 1.0617- 1.0540.
GBPUSD: 1.5252- 1.5173.
EURJPY: 113.28 – 112.79.
USDJPY: 89.11 – 88.64.
DowJones: 10’36.02 +1.44%
NASDAQ: 2'242.03 +1.99%
S & P 500: 1'095.34 +1.54%
Nikkei: 9’783.66 +2.58%
Shanghai: 2'476.10 +1.05%
Gold: $ 1'210.90
Crude Oil: $ 76.27

 
Comments:

Asian markets started off positively today as investors are being relieved by a good start for the Q2 US corporate earnings season, and the Euro Zone debt problems appear to be under control. Intel, the micro chip giant reported a second quarter profit and a noticeable increase in sales yesterday this continued to fuel a rally in major indices worldwide.

EUR/USD has hit highs of 1.2734 up to this morning. RTFX TraderTip indicates Resistances of 1.2800/1.2877 to the upside and 1.2584/1.2446 to the downside.

Important data today coming out today; from the United Kingdom employment data, and from the Euro Zone inflation data is expected. Some analysts are raising expectations of a fall in UK jobless claims and in unemployment rate – which might explain the support for the British Pound this morning and earlier this week. Even Euro was defending well the gains made yesterday mostly on the back of the positively concluded Greek treasury bill auction. It was reported that last week the ECB settled only EUR1Bln worth of Euro Zone bonds, this reduced intervention probably signals an improving situation for the debt markets.

Meanwhile the release for trade balance reported yesterday revealed a 18-month high trade deficit for the United States rising to USD42.3Bln in May from a previous USD40.3bln in April. Imports outstripped exports with most of the blame attributed to demand for imported cars, computers, and clothing.

Good day,

Rudolf Muscat
Trading desk

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