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Trading News and Views:

15th May, 2012

Indices:

European markets:

The FTSE ,DAX and CAC retreated yesterday after Greece's exit from the euro currency union came closer and German Chancellor Angela Merkel's party lost a state election. Alessandro Fezzi, a Switzerland based expert said that there is no Greek government at the moment which may see insecurity and volatility in financial markets.
(source: bloomberg.com).

Across Europe, the UK’s FTSE 100 declined 2 percent, DAX dropped 1.9 percent and CAC 40 lost 2.3 percent.
(source: bloomberg.com).

US markets:

DOW and S&P and the Nasdaq fell on Monday as Europe's worsening political upheaval and possibility that China's economy may be softening. Ken Polcari a New York based expert said people are impatient now that Greece is struggling to stay in the EU. People are frustrated around Europe looking at politics in the region.
(source: reuters.com) .

The Dow Jones Industrial Average dropped 0.98 percent, the  Standard & Poor's 500 fell 1.11 percent and the Nasdaq fell 1.06 percent.
(source: reuters.com).

Asian Markets:

The Nikkei and the Hang Seng fell on speculation that Greece may be out of the EU very soon if a stable government is not formed. China also is making efforts to accelerate economic growth by cutting cash reserves for banks. Takuya Yamada, a Tokyp based senior portfolio manager said that Europe is bringing uncertainty to the market, especially Greece is causing nervousness amongst investors. If China cuts the reserve ratio for banks then it will be good for investors, but the economy is not seeing much of a change.
(source: bloomberg.com).

The benchmark Nikkei was up 0.2 percent and the Hang Seng dropped 1.2 percent. 
(source: bloomberg.com).

Forex/Currencies:

The euro slid on Monday as fears about Greece exiting the euro persisted. Greg Moore, a currency strategist from Toronto said that the spreads are widening between German bunds and peripheral debt from Spain, Italy and Greece. There is pressure on the euro and risky currencies, if this continues dollar and yen will become strong.
(source: reuters.com).

The euro fell low at $1.2823.
(source: reuters.com).

Commodities:

Oil Trading:

Oil fell on Monday as Greece struggles to form a coalition government and concerns about China's economy slowing down could mean demand for fuel could be hit. Phil Flynn, a Chicago based expert said that Greece's situation is effecting the euro and China's economic slowdown is effecting demand for fuel from the region.
(source: reuters.com).

Crude Oil futures for June delivery settled down $1.35 at $94.78. 
(source: reuters.com).

Gold Trading:

Gold fell yesterday as dollar became strong against the euro as Greece brought threat of a political deadlock. Peter Buchanan, a Toronto based expert said that investors are selling gold at the moment and gold is acting like a risky asset.
(source: reuters.com).

US Gold futures for June delivery was down $23 an ounce at $1,561.
(source: reuters.com).

Bonds:

US Bonds:

US government bonds rose as investors moved to safer assets like bonds as Greece continued to pose threat to equity investments.
(source: reuters.com).

US 30 year bond yield fell to 2.92 percent.
(source: reuters.com).

German Bonds:

German bunds rose as Greek politics met a deadlock in forming a coalition government increasing chances of it being out of the euro.  This uncertainty took investors to safer assets like German bund.
(source: bloomberg.com). 

German bund yield was down to 1.434 percent.
(source: bloomberg.com).

 

Economic Calendar 15th May 2012:

Market Focus:

If retail sales see a good gain then it would boost confidence in the US economy.

    
 

Instrument

% Change

Indicator

INDICES

DOW

0.33%

upUP

 

NASDAQ

0.34%

upUP


S&P

0.17%

upUP

 

FTSE

0.51%

downDOWN

 

CAC

0.61%

downDOWN

 

ESTOXX

1.06%

downDOWN

 

DAX

0.79%

downDOWN

 

HSI

0.81%

upUP

 

NIKKEI

0.81%

downDOWN

CURRENCIES

EURO

0.44%

downDOWN

 

YEN

0.30%

upUP

 

GBP

0.41%

downDOWN

COMMODITIES

GOLD

0.29%

downDOWN

 

OIL

0.22%

upUP

BONDS

BOND 30 

0.020 yield change

upUP

 

BUND 10 

0.013 yield change

upUP

(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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