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European Market Update
UK inflation comes in lower than expected and offers BOE more room to stimulate if data does disappoint
Notes/Observations
RBA minutes: rate cut appropriate to boost growth; subdues growth & inflation provided room to cut rates; AUD high by historical standards
The USD/JPY was steady after the Japanese Econ Min Amari backed off from his comments expressing satisfaction with the current value of the JPY
Germany's Chancellor Merkel said to be considering certain treaty changes aimed at giving more powers to Brussels
Draft EU law to protect insured bank depositors under €100k; larger depositors could suffer losses after equity and bond holders hit
UK inflation comes in lower than expected and offers BOE more room to stimulate if data does disappoint
Thursday ...
European Market Update
Whit Monday holiday has Europe on the sidelines
Notes/Observations
Nikkei225 index trades higher than the US Dow Industrial 30 index for the first time since May 2010
Ceasefire in the currency war ??? Japan Econ MIn Amari suggesting that excessive gains have already been corrected by a large amount and any further weakness could actually become a detriment
Short-range North Korea missile launch into the Sea of Japan this weekend
China property sector retained its allure despite the govt steps to curb housing inflation. April property prices across 70 cities rose 4.9% y/y - the biggest increase since Apr 2011
European market participation light die to Whit Monday holiday (Pentecost)
Economic Data
(JP) Japan Mar Final Leading Index CI: 97.9 v 97.6 prelim; ...
Quiet session in Europe; EU27 Car Registrations rise for first time in over 18 months
Notes/Observations
BoJ will discuss the related risks and potential effect on its 2% inflation target at its two-day policy meeting next week
EBA to delay EU bank stress tests until 2014, timing of stress tests to depend on EU approval of the ECB as banking supervisor in the euro zone
France President Hollande: Cannot request ECB lower interest rates further; confident Draghi knows what he is doing
China Vice Commerce Minister Jiang: EU is the main instrument for diversifying China FX reserves
EU27 Car Registrations rise for first time in over 18 months
Economic Data
(RU) Russia Narrow Money Supply w/e May 13th (RUB): 7.71T v 7.74T prior
(EU) EU27 Apr New Car Registrations: +1.7% v -10.2% prior; ...
Euro Zone Trade runs surplus in March
Notes/Observations
Japan Preliminary Q1 GDP shows Abeonomics working with YoY growth at 3.5% vs. 2.7%e
China Apr Actual FDI YoY registers 0.4% vs. 6.2% cons
IMF approves €1.0B aid for Cyprus with €110.7M to be disbursed immediately but adds the country's outlook still highly uncertain
New Zealand budget to return to surplus in 2014/15
EU Trade Balnce handily beats expectations to record level
Economic Data
(FR) France Q1 Preliminary Wages Q/Q: 0.7% v 0.2% prior; Non-Farm Payrolls Q/Q: -0.1% v -0.3%e
(FR) France Survey of Industrial Investments: Executives see 2013 Manufacturing Investment -4% y/y vs. 0.0% (flat) prior Jan view
(CZ) Czech Mar Export Price Index Y/Y: 2.6% v 0.8% prior; Import Price Index Y/Y: +1.1% v -0.5% prior
(CZ) Czech Apr ...
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European Market takes heart that Spain 10-year syndicated order book surges to over €14B and offsets weaker-than-expected German ZEW survey
Notes/Observations
No surprises at Eurogroup with members approving Greece next tranche of €4.2B but noted the following €3.3B tranche would be subject to conditions; reassured Italy will follow up reforms effort; commitment to work as quickly as possible on a bank union
French Fin Min: bank union did not require a treaty change and debate must not slow progress
UK PM Cameron said to put forward a Tory backbenchers bill to make a 2017 EU referendum legally binding
Australia released its FY12/13 and FY13/14 Federal Budget update which forecasted larger than expected deficits. It pledged to return to balanced budget by 2015-16 period
Germany May ZEW ...
EUR/USD
The remains in near-term consolidative mode, as 1.2934 proved to be solid support after being retested and holding for now, with brief attempt above 1.3000 barrier, signaling possible corrective action. Improved hourly studies support the notion, however, sustained break above 1.3000 and regain of minimum 1.3050/60 is required to confirm base and trigger fresh recovery. Otherwise, further weakness would be likely scenario, as 4h indicators hold in the negative territory and price action being capped by descending 20 day EMA.
Res: 1.3024, 1.3033, 1.3050, 1.3064
Sup: 1.2965, 1.2934, 1.2900, 1.2861
GBP/USD
Cable bounces off yesterday’s fresh low at 1.5276, following bearish extension below psychological 1.5300 support. Prevailing negative tone on ...
This week unlike the prior one had few economical data and reports released and therefore were a calm one for the world’s leading economy yet it revealed once again that the labor sector continues on recovering and is on the right track to continue on supporting U.S growth.
In fact within the middle of the week we watched the U.S. Labor Department reporting that people who filed for unemployment benefits in the last week dropped 4,000 to 323,000 claims, which is actually the lowest level in five years.
Knowing that analysts had called for a rise by 335,000, which indicates clearly and positively that employers have enough confidence in the U.S. economic outlook not to lay-off, having in mind the week before, claims increased by 324,000 and were revised to 327,000.
Now the four-week ...