US stock markets fell on Monday resulting in losses to the “Carry trades” as caution on risky assets returned

[RTFX-Trading]

US stock markets fell on Monday resulting in losses to the “Carry trades” as caution on risky assets returned

What’s new?
United States: Bernanke says early response to bank tests encouraging.
United States: Wall Street ended lower Monday with investors taking profits.
United States: GM CEO says bankruptcy "more probable".
China: 1st case of swine flu, the government is taking measures.


Today:
Germany: Consumer Price Index M/M (APR) 0.00%, exp 0.00%, previous -0.10%.
10h30 UK: Industrial Production M/M (MAR), exp -0.80%, previous -1.00%.
10h30 UK: Trade Balance (MAR), exp £-7.20B, previous £-7.32B.
14h30 US: Trade Balance (MAR), exp $-29B, previous $-25.97B.
14h30 Canada: International Merchandise Trade (CAD) (MAR), exp 0.50B, previous 0.13B.
16h00 US: IDP/TIPP Economic Optimism, previous 49.1.
20h00 US: Monthly Budget Statement (APR), exp $-20B, previous $159-28B.

Overnight Rates & Indices:
EURUSD: 1.3615 – 1.3563.
USDCHF: 1.1106 – 1.1064.
GBPUSD: 1.5142 – 1.5075.
EURJPY: 132.77 – 131.76.
USDJPY: 97.75 – 97.14.
DowJones: 8'419 -1.82%.
NASDAQ: 1’396 +0.12%.
S&P 500: 909 -2,.15%.
Nikkei: 9’340 -1.18%.
Gold: $912.60

Comments:

    
The U.S. stock markets fell on Monday, resulting in a fall of the "carry trades" and an increase of the U.S. dollar. Investors took their profits from gains in other riskier currencies that had been lifted by optimism about the US banking system. Following the end of the “stress test” episode, concerns are now being raised over bankruptcy issues of large American firms, which is leading to renewed attractiveness of the greenback.
   
Federal Reserve Chairman Ben Bernanke voiced confidence in the inherent strength of the US economy and its ability to raise cash.  He reassured investors by stating that it is the Fed’s policy to contribute to the strength of the dollar. He added that the U.S. dollar would retain its status as the world’s top reserve currency. Bernanke also said he was encouraged by the ability of major US banks to boost capital following the results of the “stress tests”.

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