CFD Markets News and Forecasts — 09-10-2012

The euro fell against most major currencies, as European Central Bank President Mario Draghi said that the common currency bloc, there are risks associated with financial instability.

The yen rose against the euro for a second day after the International Monetary Fund said that the economy of the region will fall by more than predicted earlier this year.

Sterling fell against the dollar after data showed that the level of production in the UK fell more than expected.

European currency continued to fall after German Chancellor Angela Merkel met in Athens with Greek Prime Minister Antonis Samaras.

The Australian dollar rose to almost three-month low, which it reached yesterday on speculation that China, which is the largest trading partner of the country to resort to further stimulate the economy.

The Swiss currency weakened against most major currencies after the State Street Corp (STT) and Bank of New York Mellon Corp (BK) said they would charge to investors who hold their assets in Danish kroner and Swiss francs.

State Street will apply negative interest rates at 0.75% per annum with effect from 1 November for the crown, and a separate fee for the Franks. This means that the fund managers, insurance companies and pension funds have to pay the bank for the deposit of their funds in the accounts.

The dollar index (DXY), which is used to track the value of the dollar against the currencies of six U.S. partners, including the euro and yen, rose 0.6% to 80.004.

European stocks declined for a second day as the region’s finance ministers gathered in Luxembourg to discuss the sovereign-debt crisis.

Bankia SA (BKIA) led the decline, falling to a two-month low. Alcatel-Lucent (ALU) SA dropped to the lowest in at least 23 years as Credit Suisse Group AG said weakness should continue into the third quarter. Vedanta Resources Plc led mining companies higher, limiting losses in Europe.

The Stoxx Europe 600 Index slipped 0.5 percent to 270.20 in London.

National benchmark indexes fell in all but two of the 18 western European (SXXP) markets.

FTSE 100 5,803.2 -38.54 -0.66% CAC 40 3,382.25 -24.28 -0.71% DAX 7,231.16 -60.05 -0.82%  

Finance ministers from all the 27 countries in the European Union convened in Luxembourg today in the lead up to a summit of the region’s leaders in Brussels on Oct. 18-19.

Ministers from the 17-nation euro area yesterday declared the 500 billion-euro ($649 billion) European Stability Mechanism operational. They also said Spain, the permanent rescue fund’s biggest potential near-term customer, isn’t on the verge of tapping it.

German Chancellor Angela Merkel arrived in Greece today for the first time since the debt crisis began in 2009 after the finance ministers yesterday hailed the country’s determination to cut its budget and reshape its economy, raising the chances that aid will keep flowing to Greece.

Dow Jones reported that Greece’s creditors are yet to reach an agreement on how best to tackle the country’s debt crisis. The newswire cited people with direct knowledge of the matter.

In Washington, the International Monetary Fund cut its global growth forecasts to 3.3 percent this year, the slowest since the 2009 recession, and reduced its estimate for next year to 3.6 percent. That compares with July predictions of 3.5 percent in 2012 and 3.9 percent in 2013.

Bankia dropped 9.8 percent to 98 euro cents, extending its losses since Sept. 21 to 32 percent. The lender’s parent company, BFA, will book losses of more than 4.5 billion euros this year as it cleans up the balance sheet, Expansion reported today. The newspaper said the company will return to profit from 2013, without saying where it got the information.

Banco Popular Espanol SA (POP), Spain’s sixth-largest lender by assets, dropped 2.7 percent to 1.43 euros, for a 10th day of losses.

Alcatel-Lucent dropped 5.1 percent to 73.9 euro cents, the lowest price since at least October 1989, as Credit Suisse reiterated its underperform recommendation for the French phone- equity supplier, the equivalent of a sell rating. Analysts said “weak trends” in the first half may continue into the third quarter.

Leoni AG (LEO) and Aggreko Plc (AGK) declined 4.3 percent to 28.87 euros and 3.4 percent to 2,240 pence, respectively, after HSBC Holdings Plc downgraded both companies to neutral from overweight, a recommendation similar to buy. Capita Plc slid 3.7 percent to 740 pence as its shares were cut at Panmure Gordon & Co. and Seymour Pierce Ltd. to sell and hold, respectively.

Marine Harvest ASA (MHG) slid 3.1 percent to 4.75 kroner after the world’s biggest salmon farmer said its third-quarter profit will miss analyst forecasts because of “challenging market conditions” in Chile and Canada.

Vedanta Resources (VED) paced advancing shares on the Stoxx 600, climbing 2.1 percent to 1,090 pence. The company reported a 22 percent increase in oil and gas output for the second quarter to a record after ramping up production at its Rajasthan block in India.

Rio Tinto Group gained 1.5 percent to 3,030 pence. The world’s third-largest mining company today said it will deepen cost cutting efforts after it lowered its estimates for China’s economic growth to below 8 percent.

STMicroelectronics NV (STM) climbed 2.9 percent to 4.44 euros after Europe’s largest semiconductor company and Ericsson AB said they’re working with an adviser on options for their unprofitable chipmaking venture ST-Ericsson.

Hays Plc (HAS) jumped 5.7 percent to 79.5 pence, the biggest advance on the Stoxx 600. The shares rebounded from yesterday’s 4.4 percent selloff after the U.K. recruiter reported first- quarter net fees that fell less than estimated.

Oil prices rose as tensions in the Middle East has increased, and the global economic downturn could lead to a reduction in demand.

Prices rose after Turkey sent more tanks and missile defense systems to the Syrian border. Also today, the International Monetary Fund cut its outlook for global growth amid crisis worsens erozone. At the same time, the spread between oil West Texas Intermediate and Brent reached its highest level in nearly a year.

We also note that today's oil minister of Saudi Arabia stated that they will help to meet all the needs for raw materials.

Analysts expect that U.S. oil reserves are likely to have increased after the extraction of oil rose to its highest level in more than 15 years, while imports increased. It is predicted that stocks rose 1.5 million barrels last week, according to the median forecast of analysts. Official data tomorrow will provide the Ministry of Energy.

November futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) is 89.48 per barrel on the New York Mercantile Exchange.

November futures price of North Sea Brent crude oil mixture is 111.94 dollars a barrel on the London Stock Exchange ICE Futures Europe.

Today, during the day, gold prices have stabilized a bit, erasing earlier losses, as concerns about peripheral eurozone economies caused a sharp depreciation of the euro, while increasing the attractiveness of the dollar. But in the last couple of hours in the gold price fell sharply, updating the minimum of the month.

Euro fell sharply after the meeting of ministers of the euro area ministers, which was held on Monday amid investor dashed hopes for the salvation of the problem of the Spanish economy.

News from Greece showed that international lenders may give Athens more time to meet its budget deficit reduction, which caused the increase in the dollar index to two-week low. And as a stronger dollar makes gold is usually less accessible to non-US investors, prices have declined slightly.

According to analysts, the price of gold will continue to rise due to recent actions of the central banks, which are aimed at easing monetary policy, including the Federal Reserve, which has announced its plan to buy bonds, which should provide long-term support for gold prices.

Economists also say that the strengthening of the dollar stalled uptrend for gold, but it is very temporary, after which the cost of precious metals should increase substantially.

Note also that the price of gold has risen more than 13 percent this year, largely due to the efforts of leading central banks.

Also today, the central bank in China, which is the second-largest gold buyer made his second-largest gross cash injection in the domestic money market, thus increasing the bag at 265 billion yuan ($ 42.15 billion).

At the same time, the International Monetary Fund cut its outlook for global growth in 2012 to 3.3% from 3.5%, and warned the U.S. and European politicians that the inability to solve their economic problems could cause an even greater decline.

Reflecting continued investor demand for gold in the background of deteriorating economic conditions, on Monday was recorded yet another influx of metal commodities at 74.76 million ounces.

October futures price of gold on COMEX has fallen today to 8.7$ and is now 1764.8 dollars per ounce.

Greece is going through difficult times

Still waiting for a report "troika" in Greece

Germany and Greece should continue bilateral efforts

Greece has shown progress, reduce the budget deficit in the last few years

Germany wants to be a good partner and a real friend of Greece

Greece will succeed in spite of the difficult path of reform

Tranche of aid to Greece is key in maintaining economic

I want Greece to remain a member of the eurozone

Greece should focus on the implementation of structural reforms

EUR/USD $1.2920, $1.2960, $1.2975, $1.3000, $1.3025, $1.3050, $1.3100

USD/JPY Y78.00, Y78.25, Y78.50, Y78.80, Y79.20

EUR/JPY Y102.00, Y103.00

GBP/USD $1.6050, $1.6140 

EUR/SEK Sek8.64

AUD/USD $1.0130, $1.0235, $1.0250

AUD/NZD NZ$1.2550

EUR/CAD C$1.2625

U.S. stock-index futures show moderate gain as European Union finance ministers met to discuss the region’s debt crisis and the International Monetary Fund cut its global growth forecasts.

Global Stocks:

Nikkei  8,769.59 -93.71 -1.06%
Hang Seng 20,937.28 +112.72 +0.54%
Shanghai Composite 2,115.23 +40.81 +1.97%
FTSE  5,833.33 -8.41 -0.14%
CAC  3,420.33 +13.80 +0.41
DAX 7,291.73 +0.52 +0.01%
Crude oil $90.40 +1,20%
Gola $1777.60 0.11%

DSTA sold E2.255bln vs target E1.5bln-E2.5bln

- E2.255bln of 1.25% Jan 2018 DSL at average yield 0.861%.

Johnson & Johnson downgraded to Sell from Neutral at Goldman  
Intel downgraded to Underperform from Mkt Perform at Bernstein
Apple is initiated a Neutral at Nomura
IBM initiated with a Buy at Citigroup; tgt $250
HPQ initiated with Sells at Citigroup
Caterpillar initiated with a Neutral at Piper Jaffray

France and Germany have not discussed the eurozone budget

ECB must clearly distinguish between monetary policy and supervision

Lenders are skeptical about the idea of ​​the official debt

There were long discussions, but there is no solution for Greece

Portugal is on the right track

EUR/USD

Offers   $1.3035-40, $1.3020/25, $1.3000/05, $1.2980

Bids    $1.2880

The UK's Debt Management Office (DMO) announced Tuesday that it sold stg1.75 billion of the 4.25% June 2032 Gilt at yield 2.661%, bid-to-cover ratio of 2.12 times and tail 0.3bps.

European stocks dropped before a meeting of the region’s finance ministers in Luxembourg and as the International Monetary Fund cut its global growth forecasts.

Finance ministers from all the 27 countries in the European Union will convene in Luxembourg today in the lead up to a summit of the region’s leaders in Brussels on Oct. 18-19.

Ministers from the 17-nation euro area yesterday declared the 500 billion-euro ($649 billion) European Stability Mechanism operational. They also said Spain, the permanent rescue fund’s biggest potential near-term customer, isn’t on the verge of tapping it.

German Chancellor Angela Merkel visits Greece today for the first time since the debt crisis began in 2009 after the finance ministers yesterday hailed the country’s determination to cut its budget and reshape its economy, raising the chances that aid will keep flowing to Greece.

In Washington, the International Monetary Fund cut its global growth forecasts as the euro area’s debt crisis intensifies and warned of even slower expansion unless the U.S. and Europe address threats to their economies.

Banco Popular Espanol SA and Bankia SA led losses, both falling more than 3.5 percent in Madrid.

Leoni AG, Aggreko Plc and Capita Plc all lost at least 3 percent as analysts downgraded the shares.

Marine Harvest ASA slid 2.5 percent after third-quarter operational earnings missed an analyst estimate.

FTSE 100 5,829.08 -12.66 -0.22%

CAC 40 3,413.55 +7.02 +0.21%

DAX 7,261.84 -29.37 -0.40%

Currently the pair is trading at $ 1.2935

PDMA sold E1.3bln; E300mln to non-comps

- E1.3bln 26-week T-bill; avg yield 4.46% (4.54%), cover 1.60 (1.95)

Asian stocks outside Japan advanced, led by Chinese banks and raw-material producers after crude oil and copper futures rebounded. Japanese stocks fell as markets reopened after a public holiday. The world economy will expand 3.3 percent this year, the slowest pace since the 2009 recession, and 3.6 percent next year, the International Monetary Fund said today. That compares with July predictions of 3.5 percent in 2012 and 3.9 percent in 2013. The Washington-based lender now sees “alarmingly high” risks of a steeper slowdown.

Nikkei 225 8,769.59 -93.71 -1.06%

S&P/ASX 200 4,505.3 +23.44 +0.52%

Shanghai Composite 2,112.73 +38.31 +1.85%

BHP Billiton Ltd., the world’s No. 1 mining company and Australia’s biggest oil producer, gained 0.7 percent in Sydney.

Industrial & Commercial Bank of China Ltd. rose 2.2 percent in Hong Kong, pacing gains among Chinese lenders.

HTC Corp. tumbled 7 percent in Taipei after Asia’s No. 2 smartphone maker posted a record decline in quarterly profit.

Yesterday the euro broke a seven-day rise against the yen as European finance ministers meet to discuss the situation in Spain and the solution to the debt crisis in the eurozone.

The single currency fell against most major currencies after data showed that the level of German industrial production declined, adding fears that the debt crisis in Europe affects economic growth in Germany. German Chancellor Angela Merkel's visit to Greece for the first time after the start of the financial turmoil in 2009. The yen rose as investors sought safe-haven assets.

Pound continued its decline against the dollar, as a survey by Lloyds Bank showed that the assessment of the prospects of employment index fell in September to -49 from -43 in August. The pound also recorded the 7th daily decline against the euro, while showing the longest drop since November 2009. Analysts expect the pound could fall to a level of $ 1,5912-1,5900, which is the lowest rate in more than a month after he failed last week to break key resistance levels.

The yen rose against the dollar on downgrade the World Bank forecast for GDP growth for Asia Tihoookeanskogo region (excluding Japan and India) due to a slowdown in the Chinese economy. It is expected that the growth rate of the economy of the region was 7.2% in the current year, whereas previously predicted 7.6%. It is worth noting that this will be minimal increase of GDP since 2001. Moreover, the forecasts for 2013 were also up 7.6% to 8%, as reported previously.

Asian stocks outside Japan dropped as China resumed trading after a weeklong holiday and ahead of a meeting by European finance ministers today aimed at easing the region’s debt crisis. Companies that do business in Europe dropped as European finance ministers meet in Luxembourg today to discuss Spain’s overhaul effort and closer banking cooperation. Spanish Prime Minister Mariano Rajoy will travel to Paris on Oct. 10 for talks with French President Francois Hollande. German Chancellor Angela Merkel will visits Greece tomorrow for the first time since the sovereign-debt crisis erupted.

Nikkei 225 8,863.3 +38.71 +0.44%

S&P/ASX 200 4,481.9 -12.48 -0.28%

Shanghai Composite 2,067.58 -18.59 -0.89%

LG Display Co., the world’s second-largest maker of liquid- crystal displays that gets 18 percent of sales in Europe, fell 2.4 percent in Seoul.

CapitaLand Ltd. dropped 2.7 percent, pacing declines among Singapore property developers, after the central bank restricted home-loan maturities for residential properties.

ZTE Corp. decreased 3.7 percent in Hong Kong after a draft U.S. congressional report said China’s largest phone- equipment maker poses a security threat.

00:30 Australia National Australia Bank's Business Confidence September -2 0

01:00 Australia RBA Assist Gov Lowe Speaks -

04:00 Japan BOJ Governor Shirakawa Speaks -

05:00 Japan BoJ monthly economic report October

05:00 Japan Eco Watchers Survey: Current September 43.6 44.2 41.2

05:00 Japan Eco Watchers Survey: Outlook September 43.6 43.5

00:00 Japan Bank holiday -

00:30 Australia ANZ Job Advertisements (MoM) September -2.3% -2.8%

Change % Change Last

Oil $89.73 +0.40 +0.45%

Change % Change Last

Nikkei 225 8,863.3 +38.71 +0.44%

S&P/ASX 200 4,481.9 -12.48 -0.28%

Shanghai Composite 2,067.58 -18.59 -0.89%

FTSE 100 5,840.16 -30.86 -0.53%

CAC 40 3,407.88 -49.16 -1.42%

DAX 7,292.27 -105.60 -1.43%   

Dow -26.27 13,583.88 -0.19%

Nasdaq -23.84 3,112.35 -0.76%

S&P -5.05 1,455.88 -0.35%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,2966 -0,55%

GBP/USD $1,6020 -0,71%

USD/CHF Chf0,9332 +0,41%

USD/JPY Y78,30 -0,46%

EUR/JPY Y101,53 -0,98%

GBP/JPY Y125,44 -1,12%

AUD/USD $1,0191 +0,09%

NZD/USD $0,8193 +0,21%

USD/CAD C$0,9771 -0,13%

00:30 Australia National Australia Bank's Business Confidence September -2 0

01:00 Australia RBA Assist Gov Lowe Speaks -

01:35 New Zealand REINZ Housing Price Index, m/m September +1.3%

04:00 Japan BOJ Governor Shirakawa Speaks -

05:00 Japan BoJ monthly economic report October

05:00 Japan Eco Watchers Survey: Current September 43.6 44.2

05:00 Japan Eco Watchers Survey: Outlook September 43.6

06:45 France Trade Balance, bln August -4.3 -4.9

07:30 Eurozone ECB President Mario Draghi Speaks -

08:00 Eurozone ECOFIN Meetings -

08:30 United Kingdom Industrial Production (MoM) August +2.9% -0.5%

08:30 United Kingdom Industrial Production (YoY) August -0.8% -1.1%

08:30 United Kingdom Manufacturing Production (MoM) August +3.2% -0.6%

08:30 United Kingdom Manufacturing Production (YoY) August -0.5% -0.6%

08:30 United Kingdom Trade in goods August -7.1 -8.3

12:15 Canada Housing Starts August 225 200

14:00 United Kingdom NIESR GDP Estimate September +0.2%