Lack Of Factors To Trade

(Reuters) - Asian shares eased on Thursday as markets were vulnerable to faltering factory orders in China and lack of concrete measures shown by European leaders to tackle the risk of Greece leaving the currency bloc. European Union leaders, at an informal meeting on Wednesday, said they wanted Greece to stay in the euro zone while respecting commitments it had made in return for its bailout, but have been advised by senior officials to prepare contingency plans in case Greece exits. The murky outlook for the euro zone and fears that the crisis could derail the global economy have prompted investors to park money in safe-haven assets such as U.S. and German government bonds, the U.S. dollar or cash. Implications of a retreat in China's HSBC Flash Purchasing Managers Index, the earliest ...

Fundamental Analysis EUR "Germany is holding up the rest of the euro zone”" - Nick Kounis, head of macroeconomic research at ABN Amro Germany helped the Eurozone avoid its second recession in three years. Overall gross domestic product stagnated in the first three months of 2012, compared to the previous quarter, Eurostat data showed on Tuesday. USD "There’s a lot of slack in the economy" - Scott Brown, chief economist at Raymond James & Associates Inc. Inflation in the U.S. stagnated in April, restrained by a decline in energy costs. The core consumer price index, which excludes food and energy costs, rose 0.2 per cent, showed Bureau of Labor Statistics data on Tuesday. GBP "March's UK trade figures showed a bit of an improvement, although the external sector still looks likely to ...

Crude oil has started the week with negativity to proceed with the sharp downside wave amid intensifying fears in Europe with increasing anticipations that Greece would exit the Euro bloc. The euro outlook is under scrutiny and eyes are on what the finance ministers will discuss today. More downside pressure stemmed from the Saudi Arabia oil minister as he reiterated that supply is still high, keeping the bearish bias intact. Oil dropped from the opening at $ The two main factors behind this strong downside pressure on crude remain evident, as the political situation in Europe continued to deteriorate after the political parties in Greece failed to form a coalition government for the third time and the anti-austerity parties found more support in the parliament. The biggest anti- ...

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 ...

The Weekly Bottom Line HIGHLIGHTS OF THE WEEK United States - U.S. job creation may have weakened in the last few months, but the grounds for sustaining stronger employment growth are more fertile now than have been since the economic recovery began. Europe's labor market, by contrast, is likely to deteriorate further before it gets better. - Europe's (nonfinancial) corporate sector is highly leveraged. As balance sheet adjustments are made, Europe risks further decreases in investment, higher layoffs, and lower economic growth. These effects are compounded by deleveraging in the public sector. - U.S. corporations, by contrast, are more profitable and liquid than they have ever been. At some point some of these funds will be unleashed towards new investment, creating a positive ...

(Reuters) - Gold prices retreated towards $1,650 an ounce in Europe on Wednesday after a downbeat reading of euro zone manufacturing activity contrasted with stronger data from the United States, pushing the euro lower versus the dollar. Spot gold was down 0.4 percent at $1,654.49 an ounce at 05:15 a.m. EDT (0915 GMT), while gold futures for June delivery were down $6.70 an ounce at $1,655.70. The precious metal traded in its tightest monthly spread since last June in April and remains firmly within the $1,620-1,670 range, awaiting fresh impetus from the wider financial markets and economic indicators. Jobs data at 1215 GMT will be closely watched as a precursor to a key non-farm payrolls report on Friday. A weak report would lift expectations for more monetary stimulus. "With economic ...

Fundamental Analysis EUR "The likelihood of inflation falling below 2 percent in the short run remains low, putting the ECB in a difficult situation." - Peter Vanden Houte, an economist at ING Inflation in the euro zone rose by more than expected in April, mounting pressure on the European Central Bank to take action against price pressures. USD "Manufacturing is still in pretty good shape." - Scott Brown, chief economist at Raymond James & Associates Inc. Manufacturing in the U.S. expanded in April at the fastest pace in 10 months, showed Institute for Supply Management data on Tuesday. GBP "The good news is that manufacturing clocked up a fifth straight rise, whilst cost pressures have eased a little and some firms are still recruiting." - Lee Hopley, chief economist at EEF U.K. ...

(Reuters) - The dollar briefly fell to a two-month low against a basket of currencies on Monday, hurt by signs that the U.S. economic recovery was losing momentum, which keeps alive the chances of further monetary easing by the Federal Reserve. Despite the dollar's problems, the euro failed to gain much traction, with investors looking to sell at higher levels as harsh austerity measures take a toll on economic activity across the region. Spain slipped back into recession as gross domestic product shrank 0.3 percent in the January to March quarter, data showed on Monday. Traders were likely to be wary of the euro ahead of the second round of the French presidential vote as well as elections for a new Greek parliament next weekend. The dollar .DXY touched 78.638 against a basket of ...

(Reuters) - The dollar fell to a two-month low against a basket of currencies on Monday, weighed down after modest first quarter growth in the U.S. economy kept alive chances of further monetary easing by the Federal Reserve. The dollar is likely to come under more pressure if data, including U.S. jobs numbers, this week disappoints. U.S. growth cooled in the first quarter partly due to businesses cutting back on investments, reinforcing the central bank's contention that interest rates should be kept near zero through 2014. The slowdown fuelled speculation that the Fed may eventually launch another bond buying program, or a third round of quantitative easing. That would likely have a negative effect on the dollar while giving riskier assets like stocks, commodities and higher-yielding ...