MORNING BRIEFING: Mixed Asian session, markets still show concern

[RTFX-Trading]

MORNING BRIEFING: Mixed Asian session, markets still show concern

[B][I][U]What’s new:[/U][/I][/B]
Asia: Mixed session for equities
Euro Zone: European Bonds Signal markets still concerned
European Union: Determined to press ahead for bank levy
US FED: Possible Diverging views for future raises in rates


[B][I][U]Today:[/U][/I][/B]
[IMG]http://www.rtfx.com/images/news/CAL090610EN.gif[/IMG]


[B][I][U]Rates in Asia and Indices: [/U][/I][/B]
EURUSD: 1.1978 - 1.1924.
USDCHF: 1.1555 - 1.1505.
GBPUSD: 1.4488 - 1.4396.
EURJPY: 109.69 – 108.86.
USDJPY: 91.61 – 91.24.
DowJones: 9’939.98 +1.26%
NASDAQ: 2'170.57 -0.15%
S & P 500: 1'062.00 +1.1%
Nikkei: 9’439.13 -1.04%
Shanghai: 2’583.87 +2.78%
Gold: $ 1,238.50
Crude Oil: $ 72.52

[B][I][U]
Comments: [/U][/I][/B]

On renewed market concerns euro lost some ground this morning, and Asian equity markets ended quite mixed, after a session that lacked a clear trend.

Even though more details from the Euro Zone’s European Financial Stabilisation fund (EFSF) have been determined earlier on this week, European bonds still signaled markets remain concerned – leaving space for possible downside for the euro.

EURUSD struggled to regain ground beyond the 1.1876 low reached on the 7th June, it seems to have consolidated between the 1.19/1.20 band these last two trading days. On the upside we see resistance at 1.2021, and to downside first support lies around 1.1914 (RTFX TraderTip).

In a statement to the press yesterday, after the G20 failed to agree with the banking levy proposed, the European Union stated it would still press ahead with its own tax for the banking sector.

Statement from Chicago fed President Evans, showed a possible divergence in opinion even within the Federal Reserve. After Bernanke was raising hopes earlier on this week saying that he was still seeing the US Economic growth on track, Mr Evans added that even though economic outlook looks good he warned it might not be as strong as one would hope. On the other hand Kansas City Fed president Hoenig was quoted as saying rates should be raised by September.

Today ECB president Trichet is scheduled to hold a speech ahead of tomorrow’s policy meeting.



Good day,


Rudolf Muscat
Trading desk

RTFX Ltd
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