MORNING BRIEFING: Moody’s downgrades Ireland

[RTFX-Trading]

MORNING BRIEFING: Moody’s downgrades Ireland

What’s new:
Euro Zone: Moody’s downgrades Ireland
Euro Zone: talks for review of Hungary’s funding program suspended
Equities: Asian indices mostly in the red this morning
Swiss Franc: Finds support on back of renewed global concerns
European Union: Upcoming sovereign debt issues throughout week to be eyed closely

Today:


Rates in Asia and Indices:
EURUSD: 1.2962 - 1.2871.
USDCHF: 1.0509 - 1.0470.
GBPUSD: 1.5342- 1.5269.
EURJPY: 112.48 – 111.44.
USDJPY: 86.79 – 86.48.
DowJones: 10’097.90 -2.52%
NASDAQ: 2'179.05 -3.11%
S & P 500: 1'064.88 -2.88%
Nikkei: 9’408.36 -2.86%
Shanghai: 2'475.42 +2.11%
Gold: $ 1'190.60
Crude Oil: $ 75.94

 
Comments:

In a press release early this morning, Moody’s rating agency downgraded Ireland’s sovereign bond rating by one notch to Aa2. Loss of financial strength, weak growth prospects and problems from the banking system were cited.

The Euro was already suffering on news of a suspended review of Hungary’s funding program over the weekend, meaning that Hungary will not have access to remaining funds in its USD25.1 bln package. The IMF and EU said that Hungary must take tough action to meet targets for cutting its budget deficit.

Asian Equity indices were mostly down this morning, as last Friday’s US close was in negative territory – on the back of a weaker Michigan consumer sentiment reading, but also because of disappointing US corporate earnings.

Swiss Franc gained 0.38% against majors this morning due to these renewed concerns. Euro suffered reduced support on resurfacing sovereign debt problems.

Markets will be eyeing upcoming debt issuance in European area namely from; UK, France, Germany, Ireland, Greece and Netherlands throughout this week.

Good day,

Rudolf Muscat

Trading desk

RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com
Risk Disclaimer