Damage The Banking Sector

Sunrise Market Commentary - Fixed Income: Risk off pushes German bond yields to new lows - Risk off sentiment pushed core bonds higher and non-core bond yield spreads re-widened substantially. The Summit didn't bring new information, but another hole found in Spain's regions' budgets might get attention today. - Currencies EUR/USD cedes the 1.2624 support - On Wednesday, the EMU debt crisis was again omnipresent. Markets feared that the EU leaders wouldn't be able to take decisive action to address the debt crisis. Extreme risk aversion pushed EUR/USD to a new low for 2012. The losses of EUR/GBP were more contained, as poor UK retail sales and rather soft BoE minutes kept the door open for more policy stimulation. The Sunrise Headlines - In the final hour of trading, US ...

Sunrise Market Commentary - Fixed Income: Profit taking continued, but now concluded? - The profit taking on global core bond markets continued in the run-up to tonight's informal EU-Summit. Spanish and Italian spreads decreased significantly but yields remain at elevated levels. Today, the eco calendar is again thin and trading will again be driven by sentiment. - Currencies: Euro rebound short-lived On - Tuesday, the euro came again under pressure even as the global context was not that negative. Sentiment on risk was constructive and intra-EMU spreads narrowed, but all this didn't prevent investors to use any upticks in the single currency to further reduce exposure. The key 1.2642/24 support is again coming within reach. The Sunrise Headlines - In the final hour of ...

(Reuters) - The United States and Japan are leading a fragile developed world recovery that could be blown off course if Europe fails to contain the damage from its problem debtor states, the OECD said on Tuesday. It urged euro zone leaders to embrace all options for tackling the crisis, potentially including common bonds to go with the common currency. In its twice-yearly economic outlook, the Paris-based Organisation for Economic Co-operation and Development forecast that global growth would ease to 3.4 percent this year from 3.6 percent in 2011, before accelerating to 4.2 percent in 2013, in line with its last estimates from late November. "The global economic outlook is still cloudy," OECD Secretary General Angel Gurria told reporters. "At first sight the prospects for the global ...

(Reuters) - The euro extended its rebound from last week's four-month low on Monday but investors remained concerned over financial turmoil in Greece and Spain, drawing little comfort from a broad G8 pledge to take steps to fight the euro zone's debt crisis. The common currency rose on short-covering after speculators piled up a record amount of bets against it, according to data from a U.S. financial watchdog released late last week. "We are entering a consolidation phase with regard to the euro. It will not be known for a while whether Greece will stay in the euro or not with a Greek election a few weeks away," said Minori Uchida, chief analyst at the Bank of Tokyo-Mitsubishi UFJ. "The market may show some minor reaction to Greek opinion polls... but it is hard to sell the euro in ...

Asian shares tumbled on Friday and were set for their worst weekly showing since September, amid political turmoil in Greece and signs of growing instability in Spanish banks, with investors adding the latest weak U.S. data to the list of risk factors. Assets across the board, from commodities such as oil and gold to riskier currencies such as the euro and the Australian dollar were all heading for their weekly losses. Financial stocks were hammered after the head of Australia and New Zealand Banking Group (ANZ.AX) said volatile conditions in global markets have caused the wholesale funding market for Australian banks to freeze again, a worrying echo of the global financial crisis. European shares were also set to fall, with financial spreadbetters predicting that major European markets ...

Sunrise Market Commentary - Fixed Income: Global core bonds profit from euro debt crisis - Concerns about Greece and Spain underpinned the ongoing rally of global core bonds. The German 10-year yield fell below 1.50%. Intra-EMU yield spreads versus Germany widened substantially. Today, the eco calendar is enticing. If no euro debt crisis news acts as a circuit breaker, the eco data may for once drive the price action. - Currencies: Speculation on Grexit continues to hammer the euro. - At the start of the new trading week, the Greek crisis remained the key factor for currency trading. With no visibility on the outcome of the EMU crisis, the easiest way for the euro is south. EUR/USD set a new correction low. EUR/GBP dropped below the 0.8000. This morning, strong German ...

Sunrise Market Commentary - Fixed Income: Little support from elections - Global core bonds set new contract highs at the start of the European session after the French and Greek elections. However, the negative sentiment surprisingly didn't push through and many markets bounced off key levels. - Currencies: euro limits the damage after French and Greek elections. - On Monday, the euro opened sharply lower after the election results in Greece and Spain. However, the price moves developed in an orderly way. Even more, the single currency showed remarkable resilience and reversed part of the early losses. The test of the 1.2974 support was rejected. The EUR/GBP 0.8068 support remains under pressure. The Sunrise Headlines - US Equities hovered sideways on Monday, halting a ...

Fundamental Analysis EUR " show that despite the crisis in the euro area, Germany is growing and benefiting from a revival in international trade." - Klaus Baader, senior economist at Societe Generale SA German factory orders rose by more than forecast in March, a sign Europe’s largest economy is weathering the debt crisis. USD "From where we sit right now, we think the economy looks fundamentally stronger." - Marisa Di Natale, an economist at Moody’s Analytics in West Chester U.S. stocks closed mixed on Monday after Francois Hollande was elected as a French president and Greek voters turned to antibailout parties. GBP "… the challenging economic backdrop suggests that a significant acceleration in prices or activity is unlikely in the near term." - Robert Gardner, Nationwide’s ...

Fundamental Analysis EUR "We have taken some very important moves towards a stronger union, and then we see statements by people which undermine the steps that the EU made" - Pavlos Yeroulanos, Cultural & Tourism Minister of Greece Pavlos Yeroulanos, Cultural & Tourism Minister of Greece, said that the latest bailout agreement could be “destroyed” by statements which criticize Greek efforts to deal with debt crisis. USD "Given more favorable housing market conditions, the trend in contract activity implies we are on track for a more meaningful sales gain this year" - Lawrence Yun, Chief Economist at National Association of Realtors Month on month sales of previously owned houses rose more than expected in January, a sign the housing market is recovering. GBP "… the fundamentals facing ...