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Market Talk - 09/02/12 |
Trading News and Views: 9th February, 2012 Indices: European markets: The FTSE, CAC and DAX dropped for the third day as investors speculated that Greece will accept the spending cuts needed to obtain further financial help. Bob Parker, an expert said that Greece may manage to stay in the euro zone and a finalized Greek debt agreement could come in the next two weeks. Markets could remain flat for few months but later could become stronger. Across Europe, the UK’s FTSE 100 fell 0.2 percent, DAX and CAC 40 decreased 0.1 percent. US markets: DOW and S&P and the Nasdaq were flat yesterday as there was no agreement still on Greece's debt talks. Randy Frederick, a Texas based expert said that if Greece is unable to come to a deal then the markets would not catch up and the economy may deteriorate. The Dow Jones Industrial Average rose 0.04 percent, the Standard & Poor's 500 was up 0.22 percent and the Nasdaq was also up 0.41 percent. Asian Markets: The Nikkei and the Hang Seng rose as Greece's government came closer to secure a bailout package. Chinese shares also moved up ahead of report that could show inflation easing. Tim Schroeders manager from Melbourne said that there is positive hope that Greek debt could be resolved. The benchmark Nikkei rose 1.1 percent and the Hang Seng advanced 1.5 percent. The euro went lower against the dollar as investors awaited signs of Greece reaching a deal. John Doyle, a Washington based expert said that Greece's debt deal could make some progress, but there is no immediate outcome yet, hence investors are scared to push euro higher. The euro was down at $1.3254 by 0.1 percent. Oil Trading: Oil rose on Wednesday as hopes of a Greek deal was near. Chris Dillman, an analyst from Connecticut said that there is optimism that the Greek deal will go through which is pushing oil up before the EIA (US Energy Information Administration) data. Crude Oil futures for March delivery rose 30 cents to settle at $98.71 a barrel. Gold Trading: Gold fell yesterday as investors grew confident about Greek deal going through. Sean McGillivray, an expert said that investors are not so keen on buying gold since dollar is doing quite well. US Gold futures for April delivery was down $17.10 at $1,731.30. US Bonds: US government bonds fell after $24 billion sale of 10 year US government bonds offering a yield above 2 percent garnered good demand. Guy LeBas, a fixed income strategist from Philadelphia said that investors are waiting and watching for Greece's outcome. US 30 year bond yield was unchanged at 3.14 percent. German Bonds: German bunds advanced amid speculation Greek Prime Minister Lucas Papademos was close to obtaining a bailout deal. Richard McGuire, a fixed income from London said that a deal on Greece is imminent for the market and that is continuing to keep bunds bearish. (source: bloomberg.com). German bund yield was up one basis point to 1.98 percent.
Economic Calendar 9th February 2012: Market Focus:
If initial jobless claims decline then it could raise expectations for job growth.
(percent changes based on previous day's underlying market data, for indication only)
Sources include: Bloomberg.com , Reuters.com, Fxstreet.com, Economicnews.ca, g20.org and FT.com (Any opinions expressed in these updates do not reflect the views of the company, and as such should not be taken as trading advice.) |
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