MORNING BRIEFING: Global Economic Growth back in the limelight

[RTFX-Trading]

MORNING BRIEFING: Global Economic Growth back in the limelight

[B][I][U]What’s new:[/U][/I][/B]
US FED: Concerned about the pace of economic recovery
China: Slowing economic growth, but cooling inflation
Equities: Asian indices in the red, even European markets
China: Agbank trading debut disappoints

[B][I][U]Today:[/U][/I][/B]

[IMG]http://www.rtfx.com/images/news/CalE150710.gif[/IMG]

[B][I][U]Rates in Asia and Indices: [/U][/I][/B]
EURUSD: 1.2764 - 1.2709.
USDCHF: 1.0547 - 1.0505.
GBPUSD: 1.5289- 1.5237.
EURJPY: 112.82 – 112.04.
USDJPY: 88.50 – 88.01.
DowJones: 10’366.72 +0.04%
NASDAQ: 2'249.84 +0.35%
S & P 500: 1'095.17 -0.02%
Nikkei: 9’688.33 -1.09%
Shanghai: 2'461.62 -0.36%
Gold: $ 1'211.05
Crude Oil: $ 76.47


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

Minutes released of the Fed’s June meeting, revealed concern about the pace of economic recovery and exacerbated worries over the poor June retails sales figures released earlier yesterday. Later news from China came out as disappointing as well, with a registered slowing economic growth for the second quarter. Despite the reduced growth the registered cooling inflation gave hopes that monetary stimulus may not be tightened further.

This negativity reflected in Asian equity indices and even at the opening of the European equity markets. The Euro managed however to preserve its 1.27 level as it traded in the 1.2709-1.2764 range this morning.

On four hourly charts for the EUR/USD, we can see, to the upside next resistance levels are 1.2784 (50% Fibonacci retracement level (from 12th April highs to 7th June lows), and 1.30 a significant key psychological level. While to the downside we see support at 1.2700, 1.2692/1.2640.

In their first trading debut, shares of Agricultural Bank Of China Ltd (AgBank) staged a disappointing performance opening at 2.74 yuan easing to 2.70 yuan later during trading(even though the IPO was a world record at USD22bln). In anticipation of its listing AgBank’s shares were predicted to see a rise between 3% and 12% for the session. The dismal performance is a reflection of concerns over slowing growth and worrying loans, it is also seen as an indication of demand for bank’s fund raisings.

Good day,


Rudolf Muscat
Trading desk

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