Europe Reaches The Summit

MORNING BRIEFING: EUR/USD breaches the 1,26 level What’s new: Equity: Asian and US equities remain pressured on Greece and softer Chinese HSBC flash PMI Eurozone: The EU summit wants Greece to stay but no tangible measures as yet Forex: EUR/USD below key support at 1.2650; 1.25 is now eyed Rates in Asia and Indices: EUR/USD 1.2555 1.2599 0.01 % USD/CHF 0.9533 0.9566 0.03 % GBP/USD 1.5668 1.5701 -0.03 % USD/JPY 79.41 79.57 -0.02 % EUR/CHF 1.2009 1.20117 0.00 % EUR/JPY 99.72 100.18 -0.04 % Dow Jones 12311.56 12508.3 -0.05 % Nasdaq 2499.3 2553.19 0.31 % S&P 500 1296.53 1320.71 0. ...

Fundamental Analysis EUR "The rally is mostly technically driven after we became quite oversold last week." - Raimund Saxinger, a fund manager at Trust Investment GmbH European stocks rose by the most in a month on Tuesday. The Stoxx Europe 600 Index gained 1.91 per cent to 244.76. Germany’s DAX Index edged higher 1.65 per cent and France’s CAC 40 Index added 1.88 per cent. The U.K.’s FTSE 100 Index rose 1.86 per cent to 5,403.28 USD "People are becoming more confident about job prospects and about taking on mortgages." - Millan Mulraine, a senior U.S. strategist at TD Securities Inc. U.S. existing home sales rose in April to an annual rate of 4.62 million from 4.47 million in March, said the National Association of Realtors. GBP "These figures give the Monetary Policy Committee ...

Fundamental Analysis EUR Gold extended previous gains in Asian session on Tuesday as concerns over Greek exit from the single currency union eased. At G8 summit leaders of eighth largest economies stated that they would do everything possible to retain Greece in the Euro Zone. COMEX gold June contract traded at 1,592.35 US Dollars per troy ounce on the New York Mercantile Exchange, advancing by 0.23%. USD The US Senate has passed a bill aimed at tightening sanctions imposed on Iran to force the country to cease its nuclear program. The new sanctions imply investigation of role of Iran's Revolutionary Guard in oil exports as well as obliging the US companies to disclose any business activities with Iranian partners. The move came ahead of negotiations between Iran and six major ...

Fundamental Analysis EUR "Inevitably there is going to be an element of bargain hunting as investors look to top up their holdings on the basis of slightly lower prices" - Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers European stocks edged higher on Monday on China’s pledge to boost growth. USD "Equity prices have gotten oversold" - Mark Luschini, chief investment strategist for Janney Montgomery Scott LLC U.S. equity market edged higher on Monday on China stimulus hopes and after German and French officials said they would cooperate to keep Greece in the monetary union. GBP "Obviously, as the euro depreciates, the U.K. gets slightly more expensive" - Miles Shipside, Rightmove commercial director U.K. national house prices stagnated in March, announced the ...

Equities and risky FX bounce after G8 commitment to Greece and China hints of easing Economic Data (JP) JAPAN MAR ALL INDUSTRY ACTIVITY INDEX M/M: -0.3% V -0.1%E (3rd consecutive decline) (NZ) NEW ZEALAND APR NET MIGRATION: -850 V 230 PRIOR (NZ) NEW ZEALAND APR CREDIT CARD SPENDING M/M: 0.2% V 0.4% PRIOR; Y/Y: 3.7% V 5.3% PRIOR (TH) THAILAND Q1 GDP Q/Q: 11.0% V 10.0%E; Y/Y: +0.3% V -0.5%E (UK) UK MAY RIGHTMOVE HOUSE PRICE M/M: 0.0% V 2.9% PRIOR (4-month low); Y/Y: 2.0% V 3.4% PRIOR Markets Snapshot (as of 04:30GMT) Nikkei225 +0.7% S&P/ASX +0.3% Kospi +0.9% Shanghai Composite +0.2% Hang Seng -0.1% Jun S&P Futures +0.5% at 1,297 June gold +0.4% at $1,599/oz June Crude +0.5% at $91.90 Overview/Top Headlines Asian equity markets, commodities, and risk-on FX opened the new week ...

Fundamental Analysis EUR 17-nation currency declined against most of its counterparts on Monday Asian trade as investors awaited Greek officials' response to international creditor requirements. The Euro dropped 0.6% against greenback to USD 1.3085 and lost 0.3% against Japanese Yen, reaching JPY 100.46. Currently EUR/USD is trading at USD 1.3070 and EUR/JPY is trading at JPY 100.30. USD Bank of America, JP Morgan Chase &Co and Well Fargo & Co was sued over use of property loan database by Eric Schneiderman, Attorney General of New York. According to Schneiderman, the lenders' use of database (MERS) led to inadequate foreclosures. Banks are accused of misleading home-owners, undermining foreclosure proceedings and creating uncertainty about proprietorship interests in real estate. ...

(Reuters) - Oil edged lower in volatile trading on Friday, posting a second consecutive weekly loss as caution about Europe's debt crisis and year-end positioning continued to spark selling into rallies. Weak trading volume as the holiday season approaches contributed to the choppy trading and both Brent and U.S. crude turned slightly higher in post-settlement trading. "After the recent sell-off on the disappointing European Union summit people are going to be reluctant to go back in long at least until after the holidays," said Phil Flynn, analyst at PFGBest Research in Chicago. Flynn and other brokers also cited caution because of expected ratings agency downgrades of European countries as helping pull oil lower and breaches of key technical levels also triggered intraday selling.- U. ...

Fundamental Analysis EUR The Euro Zone will experience refinancing problems in February, reported Ewald Nowotny, Governing Council member of the ECB. Refinancing eliminating deficit financing will reach about EUR1.3 trillion next year coupled with EUR1 trillion for refinancing of banking industry. It is crucial to work out short-and long-term measures to solve financial difficulties and further fine-tuning in the policies is necessary, he stressed. USD In November US consumer price level was flat, mainly due to dropping energy costs, said the Labor Department on Friday. Core prices excluding energy and food costs added 0.2%. The real readings mostly match with analysts' expectations. Inflation adjusted hourly salary declined 0.1%. Unadjusted Consumer prices rose 3.4% on yearly basis. ...

(Reuters) - Oil tumbled more than 4 percent on Wednesday, the biggest drop in over two months as a commodities selloff led to breaches of key technical support. Worries that the Organization of the Petroleum Exporting Countries lacked a mechanism to quickly trim production of individual member quotas, after agreeing on a high output ceiling, added to selling pressure. Brent crude dropped below its 300-day moving average and U.S. crude fell under its 200-day moving average. Early pressure on commodities came from investors disappointed that the European Central Bank is not buying more bonds of troubled European countries, a move that was widely seen in markets as a requisite next step following last week's EU summit on strengthening fiscal unity in the bloc. The euro sank against the ...