Morning briefing: Rising of US stock markets

[RTFX-Trading]

Morning briefing: Rising of US stock markets

In focus:
USA: Alan Greenspan does not eliminate the risk of a return to recession
Companies: Profits record for HSBC and BNP Paribas
Japan: Sharp rise in JPY may affect BoJ’s main scenario
Australia: Rates unchanged
Switzerland: New record high for PMI

Today:


Rates in Asia and Indices:
EURUSD: 1.3184 - 1.3151.
USDCHF: 1.0397 - 1.0374.
GBPUSD: 1.5899-1.5862.
EURJPY: 114.14 - 113.57.
USDJPY: 86.65 - 86.28.
DowJones: 10'674 .38 +1.99%
NASDAQ: +1.80% 2'295 .36
S & P 500: +2.20% 1'125 .86
Nikkei: 9'648 .06 +0.81%
Shanghai -0.63% 2'655 .57
Gold: $ 1'181 .80
Crude Oil: $ 80.83

Comments:
In an interview with a U.S. television, Alan Greenspan has warned against a possible return to recession for U.S. economy, saying that recovery "was on a pause". He also predicted that unemployment would remain at its current level of 9.5% for some time.

After the publication by HSBC and BNP Paribas of their excellent results (doubling of profits for HSBC and up 31% at BNP Paribas), U.S. equity markets experienced an auspicious day yesterday.

The recent rise in the JPY against the USD has led Mr. Miyao, board member of the BoJ (Bank of Japan) to declare that BoJ is closely monitoring the rise of the JPY, not ruling out a further easing of the central bank’s monetary policy in case of crucial effect of this increase on the Japanese economy.

No surprise for the markets this morning. Australia's central bank kept its interest rates unchanged at 4.5% while the Australian dollar lost ground against the U.S. dollar before the announcement, anticipating RBA’s decision.

In Switzerland, the PMI (purchasing managers index) published at a historic high of 66.9, against expectations of economists to 65.0, confirmed the recovery of Swiss industry, faster than in Europe, despite the Exporters fears that a strong CHF would be harmful for export industry.

Have a good day

Pascal Bovay

RTFX Ltd
Trading desk

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