Contest
Nawaz Sharif, the prime minister whose government was overthrown by a military coup more than a decade ago, is set to come into power for the third time after winning the general elections over the weekend.
Sharif’s Pakistan Muslim League (PML-N) will form a stable government without entering into a political alliance with his rivals. His party won more than 125 seats out of the total 272 contested seats of the 342 house of the National Assembly.
Sharif won with a whipping majority; he is one of the country`s richest men. He was overthrown in a coup when Gen. Pervez Musharraf seized power in 1999, and was jailed and sent to exile in Saudi Arabia; he returned to Pakistan in 2007.
“I`m very optimistic that the foundation of what we call the new Pakistan has been laid. Pakistan will never ...
Sunrise Market Commentary
- Rates: Core bonds slide further
- Global core bonds remained under pressure yesterday. Risk-on sentiment on equity markets pushed the German Dax to a new all time high. This weighed on German bonds as well as upcoming supply. Today’s calendar is uneventful which means bond trading might again be driven by sentiment on equity markets.
- Currencies: Risk-on rally hardly affects major currency cross rates
- On Tuesday, the risk rally continued. As most major central banks maintain a similar ultra-loose policy bias, the impact on the likes of EUR/USD is limited. The pair is holding a tight range around the 1.31 pivot. Sterling underperformed EUR/USD. Today, we expect more of the same
The Sunrise Headlines
- US equities continued their march ...
What Happens in FX When Doves Cry?
The RBA is the latest central bank to cut interest rates following the ECB's decision last week. The Australian central bank cut rates by 25 basis points to 2.75% - an all time low - earlier attributing the cut to the inflation rate likely to be "a little lower than expected" in the coming months. Weaker inflation pressures gave the RBA scope to cut rates, however the strong exchange rate may have also played a part. The RBA statement noted that although interest rates have already been reduced substantially the exchange rate has been "little changed" and "remains at historically high" levels for more than 18 months. This hurts exports, especially now that the country's mining boom is considered to be close to its peak.
The RBA: potential to cut rates ...
Title:
Asian Forex Championship
ForexCup invites all Asians* to take part in the Forex Championship - an exciting and challenging competition that will last for 8 weeks. The participants will have a chance to fight for the three main prizes – $3000, $1980 and $1020, as well as the title of the Asian Best Trader. The rest contestants, being inches away from the final line, will be awarded with the real money bonuses according to their profits made during the Championship.
Thus, you may expect:
All- Asia contestants with different trading experience;
Good prizes for the 3 best results;
Real money bonuses;
Free participation.
Key dates:
May 27, 2013 – the competition starts;
June 23, 2013 – the registration ends;
July 19, 2013 – the competition ends;
July 22, 2013 – summing-up.
Prizes:
1st place – ...
The search for a fundamental safe haven is likely to get even more difficult this week with the Fed rowing back from any hawkish talk while the ECB is set to cut interest rates in a desperate attempt to ward off any further tightening of monetary conditions. The net outlook still favours dollar appreciation as the least ugly currency over the next few weeks with the US economy is likely to prove the most resilient. Buying dollar dips against all major currencies following the Fed meeting looks the best strategy.
The Federal Reserve last met following the very strong payrolls data for February amid evidence of a strong rebound in the economy. There was a slightly more hawkish undertone to the meeting as markets yet again pondered a great rotation out of bonds. Since then, there has been ...
Owning EURO's Needs Convincing
Good luck with your next bailout Europe - is most likely what the Russians are saying or at least should be. Watching EUR/RUB plummet yesterday in a hair's breadth looked only to be the beginning of long draw out retaliation plan to a possible +40% Cypriot deposit haircut on accounts not arbitrary protected. Mind you, this market needed very little Russian help to pummel the 17-member single unit down to current size. The head of the group of Euro-finance ministers alone was capable of doing all the dirty work.
Capital markets have remained wary ever since Dijsselbloem was reported to have said that the Cyprus bailout deal was the new European template - a statement worthy of selling the EUR every time. Shareholders, bondholders and uninsured depositors are ...
Major European PMI readings all miss expectations; UK retail sales handily beats consensus; Spain has solid bond auction results
Notes/Observations
China Mar HSBC Flash PMI Manufacturing beats expectations and registers 5th straight month of expansion
Political standoff in Australia came to a head. After weeks of tension, PM Gillard survived an uncontested party leadership challenge
New Zealand Q4 GDP registers highest reading in three years
Japan Feb adj Merchandise Trade Balance registers largest deficit on record
Hope remained that Cyprus will be able to come up with a new plan to get a bailout; "Plan B" would involve some Russian aid and a reduced levy on bank deposits
ECB to maintain ELA for Cyprus until Monday March 25th; ELA can only be considered thereafter if EU/IMF program ...
Egypt's extended election timetable could delay a $4.8 billion IMF loan agreement until the third quarter, Fitch Ratings said on Wednesday, warning that such a deal is becoming more pressing as financial conditions deteriorate.
In a statement, Fitch said a deal with the International Monetary Fund was vital for a sustained improvement in Egypt's balance of payments, and to prevent uncontrolled currency depreciation.
"The need for an IMF deal is becoming more pressing in the absence of further pledges of bilateral support beyond a reported agreement by Qatar to buy $2.5bn of Egyptian T-bonds in March," it added.
The rating agency said it had expected Egypt to reach an agreement with the Fund in the second quarter of 2013.
Further delay to the agreement as a result of the long election ...
Italian borrowing costs rose slightly at an auction on Monday with investors remaining unperturbed by questions hanging over the next government just hours before results of a closely contested general election.
The treasury sold 2.82 billion euros ($3.71 billion) of two-year zero-coupon bonds, just below a maximum planned amount of 3 billion euros.
It paid a yield of 1.68 percent, up from 1.43 percent at a similar sale one month ago. But the yield also compares with that on the secondary market - 1.80 percent - and with a 2012 peak of 4.86 percent touched in July before the European Central Bank's pledge to buy government bonds of weaker euro zone countries.
Demand was 1.65 times the offer, up from a bid-to-cover of 1.45 at an end-January auction.
"It's a good result as far as yields ...