Currency Swaps And Other

Asian shares on Thursday recovered a bit of the ground lost in the previous day's sell-off, but investors found no reason to bet on risk amid deepening turmoil in Greece and fears of contagion to other stressed euro zone economies. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.5 percent on short covering, after sliding more than 3 percent - its biggest one-day drop in six months - on Wednesday. The index hit a new 4-month low on Wednesday, and has shed 9.6 percent since May 2. Gold and the euro recovered from Wednesday's lows as a recovery in shares helped improve sentiment slightly. Bucking the general trend of recovery in Asia-Pacific, Australian shares .AXJO bucked the general recovery, falling 0.6 percent to a four-month low, with banks easing on ...

Still, concerns are spreading in markets with mounting speculations Spain and Italy would eventually ask for an international bailout as they will be unable to improve their fiscal stance. After bailouts provided to Greece, Portugal and Ireland, it seems that the debt dilemma is intensifying as the contagion spread to large euro area economies which probably caused euro area members to expand the European permanent rescue fund and global economies to raise funds to combat the lingering effects of the crisis. Worries sparked after the rise in Spanish 10-year bond yield above 6% at the beginning and the end of the week, as this level is close to 7% which forced euro area peripheral nations to ask for international aid, despite the ECB intervention through buying Spanish debt. Spanish ...

Investor concerns regarding Spanish debt led to an increase in risk aversion on Friday, and caused the euro to tumble vs. its main currency rivals. Furthermore, news that the Chinese economy grew at a slower than expected rate last quarter resulted in safe-haven assets, including the US dollar and Japanese yen, turning bullish. Turning to this week, traders can expect market volatility as significant news from both the euro-zone and US is scheduled to be released. Today, US retails sales data may help the dollar extend its current upward momentum, should it come in at or above expectations. Economic News USD - Risk Aversion Leads to Dollar Gains The US dollar turned bullish vs. most of its main currency rivals on Friday following poor euro-zone news which led to an increase in risk ...

(Reuters) - Global stocks dropped more than 1 percent and the euro fell to a 3-week low against the dollar on Wednesday a day after U.S. central bank meeting minutes dented hopes for more economic stimulus and a Spanish debt auction drew weak results. Gold prices hit their lowest since early January, while U.S. bonds rallied as losses in the stock market enhanced the bid for safe-haven U.S. government debt. Comments from European Central Bank President Mario Draghi that the euro zone's economic outlook is subject to downside risks related to the debt crisis and commodity prices further weighed on the euro, as well as gold. Draghi's comments came in a news conference after the ECB announced it was holding interest rates at record lows, as widely expected. The Federal Reserve's minutes ...

Fundamental Analysis EUR Greek CDS sellers might have to pay 78.25 cents on each euro of the bonds to cover the insurance claims caused by Greek credit restructuring. According to Cedex Group and Markit Group, the dealers have set an initial 21.75% price at a Greek-bond auction today. USD United Parcel Service expanded its bid for TNT Express by 5.6% to EUR 5.16 billion to shelter the largest deal in UPS history and beat the offer from Deutsche Post AG. Atlanta-based UPS raised its offer price from EUR 9.0 a share to EUR 9.5 a share. TNT shares added 1.8% on the announcement in Amsterdam trading session. GBP British FTSE 100 index declined on Monday as dropping commodity prices negatively affected the value of resource shares. Financials also provided substantial downward contribution. ...

(Reuters) - World share markets edged back from near eight-month highs on Monday with European banking stocks under pressure ahead of an auction to determine the payout on Greek credit default swaps, while a broadly firm dollar kept riskier currencies in check. The dollar is being supported by improving U.S. economic data, which reduces the likelihood of further stimulus from the Federal Reserve. Oil prices, seen as the big risk to the global economic outlook, dipped to just below $125 a barrel after gaining $3 on Friday but no new catalysts emerged to further boost risk appetite and push stocks higher. U.S. stocks had their best week in three months last week and European shares climbed to peaks not seen since last July after waves of central bank liquidity eased concerns about the ...

With the beginning of a new week, the European common currency declined slightly, cutting some of the gains recorded last week as investors are concerned over the Greek settlement of $3.2 billion of Credit-Default Swaps (CDSs) triggered by Greece after the debt-swap restructuring occurred earlier in March. Markets are fluctuating ahead of the Greek auction today, where this auction will be held under the supervision and the rules of the International Swaps and Derivatives Association (ISDA). In addition, this auction will determine the recovery price for Greek bonds that must be paid by sellers of protection, noting that the rate will be set at 11:00 GMT, while the final decision will be made at 15:30 GMT. Sellers of protection must settle now the outstanding insurance policies held by ...

(Reuters) - Asian shares edged higher and the dollar was steady against the yen on Monday after the U.S. market hit an almost four-year high last week and with higher European stocks reflecting signs of growing stability in the euro zone. With investors buoyed by those positive signs, financial spread bets are for major European markets .FTSE .FCHI .GDAXI to open 0.2 to 0.4 percent higher. .L .EU The MSCI Asia Pacific ex-Japan index .MIAPJ0000PUS inched up 0.2 percent after last week's modest 0.8 percent gain. Japan's Nikkei .N225 was also up 0.2 percent, at 10,151, having earlier reached an 8-month high above 10,172 with slower-moving blue-chips being bought up. .T "U.S. economic data continues to be solid," said Fujio Ando, senior managing director at Chibagin Asset Management in ...

The euro and U.S. dollar are on hold before euro-area finance ministers meet today in Brussels to approve Greece's second bailout and ahead of tomorrow's monetary decision by the Fed and BoJ. Euro-area finance chiefs will gather today in Brussels to approve Greece's 130 billion euro second bailout after the nation fulfilled all the requirements set by international lenders, including a deal with the private sector bondholders, which was completed last week on Friday. Three days ago, finance ministers provided a tranche of 35.5 billion euros in payments and interests to Greece's creditors, while set to consent the rest today, to help Greece avoid default when 14.5 billion euros of debt matures on March 20. While Greece's second bailout approval is considered a positive thing, the use of ...