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Sunrise Market Commentary - Fixed Income: Fresh elections in Greece further support core bonds - German bund came off the contract highs at the start of the session on better German Q1 GDP data. The move didn't last long however and the announcement of fresh Greek elections marked an intraday U-turn. This morning, the German Bund future and US Note future once again reach new contract highs. - Currencies: euro sell-off accelerates as Greece will hold now elections. - On Tuesday morning it looked temporary that the euro might enjoy some breathing space as the German Q1 growth was much stronger than expected. However, the rebound had no momentum at all. The euro was again hammered as talks on the formation of the Greek government collapsed. Is the euro heading for a free fall? ...

The Week Ahead ■The Bank of England's next move ■Is this the beginning of the end for the Eurozone? ■Fed officials reluctant to signal more easing ■Broader risk environment outweighs Japanese rhetoric The Bank of England's next move The BOE kept rates on hold when it concluded its May meeting last week; it also allowed the asset purchase program to come to an end. Since the UK slipped back into recession in Q1 2012 and the growth figures at the start of the second quarter have continued to look weak, the decision to hold interest rates was mostly down to the sticky outlook for inflation. The attention now turns to Wednesday's Inflation Report. The focus will be on the Bank's growth and inflation forecasts. The growth forecasts are likely to be revised lower. Even ...

Sunrise Market Commentary - Fixed Income: Largely uneventful session for core bonds - Core bonds had an insignificant, technical and sentiment-driven session that left bond yields slightly higher in the close. Overnight, negative headline news on JP Morgan and Greece triggered a moderately strong opening of the Bund. Europe will be in the focus today with the publication of the Spanish banking plan and the EU spring forecasts. - Currencies: EUR/GBP testing 80.00 barrier, as BoE stops printing press - On Thursday, sentiment on risk turned slightly less negative, even without progress in the Greek debt/election crisis. Nevertheless, the decline in EUR/USD slowed. EUR/GBP reached a minor low just below 0.8000 as the BoE halted its program of asset purchases. For now, we see no ...

Sunrise Market Commentary - Fixed Income Weak US payrolls push core bonds higher again - On Friday, it was weaker US payrolls that helped core bonds eke out more gains, but non-core bonds held up quite well. Spreads even narrowed in the intra-EMU bond markets. We fear that this won't be the case today, as French and Greek election results inject uncertainty into markets. - Currencies: Euro testing key support levels - On Friday, trading in the major euro cross rate was rather calm, but the pressure remained to the downside. The US payrolls were unable to change this pattern. This morning, EUR/USD is testing the key 1.2974 support while EUR/GBP is trading south of the 0.8068 level. A sustained break below these levels would raise a red alert for the single currency. The ...

Sunrise Market Commentary - Fixed Income ECB can't move global bonds - Global core bonds ended the session unchanged, as initial disappointment that the ECB wasn't more dovish dissipated fast. Today's payrolls are key and might decide whether the 6-week rally is over or has one more leg. Currencies: Major currency cross rates little changed ahead of the payrolls - EUR/USD gained temporarily during the ECB press conference as Draghi was less dovish than some in the market had expected. However, the move was technically insignificant as sentiment on risk remained fragile. Today, the payrolls are the key factor for (currency) trading. Investors might stay cautions on the euro to avoid this weekend's political event risk. The Sunrise Headlines - US Equities dropped for a ...

(Reuters) - In a ramshackle township in northwest China's Shaanxi province, red Communist Party banners call on a nearby steel mill's workers to seek "progress" and avoid making "backward steps". The slogans demonstrate the hybrid nature of China's floundering steel sector, which as it tries to serve the twin masters of the state and the market has seen margins plummet and racked up a mountain of debt. Beijing's attempts to tackle the problems by forcing lumbering state-owned mills to consolidate or push up the value chain look likely to aggravate rather than solve the problems of a sector that accounts for 3-4 percent of China's GDP. An obvious solution - to allow the worst performers to go out of business - seems unlikely in an industry identified by Chairman Mao Zedong nearly half a ...

(Reuters) - Gold prices fell on Monday, following losses in a number of other commodity markets, as worries about Spain's ability to repay its debt and a resurgent euro zone debt crisis dent investors' appetite across the board. Silver also fell as stockpiles in exchange warehouses hit record highs, showing plentiful near-term supplies of the industrial metal as the global economic recovery struggles for traction. Bullion was on track for a second day of loss as Spanish 10-year government bond yields broke through the 6 percent mark for the first time since December, overshadowing optimism generated by encouraging retails sales data. The metal has dropped about 8 percent from near $1,800 an ounce at the end of February as a strong run of positive economic data reduced market hopes about ...

The Weekly Bottom Line HIGHLIGHTS OF THE WEEK United States A narrowing trade deficit and larger than expected inventory accumulation in February suggests Q1 growth will be closer to 2.5-3.0% than our previous forecast for 1.7%. That being said, this does not change our underlying outlook. The higher print on GDP reflects an inventory swing and improved trade balance due to weak imports. In contrast, domestic demand still appears set to post a shallow 2% gain. In order for the U.S. economy to generate sustained growth at the 3% level, we will need to see a much healthier job market that is capable of generating widespread growth in real incomes. Canada In two survey releases, the Bank of Canada detailed that businesses are more upbeat about their sales' prospects and ...

(Reuters) - Oil prices rose a second day on Monday, gaining 2 percent as loading delays for North Sea crude cargoes added to concerns about global supply disruptions and as supportive U.S. manufacturing data countered disappointing economic figures from Europe. Crude futures extended gains on news that BP (BP.L) had shut in oil output at the Valhall platform last week for compressor maintenance and that, according to trade sources, the shutdown would delay loading of seven North Sea Ekofisk cargoes in April. The Institute for Supply Management's index of U.S. factory activity rose to 53.4 in March from February's 52.4, topping economists' expectations and keeping the reading above 50, indicating expansion in the sector. "Oil prices rose on the better-than-expected ISM manufacturing ...