FOREX REVIEWS
The Euro hit multiyear lows against its peers yesterday as fears of contagion agitated markets. Bond yields of Spain and Italy continued to rise with the Spanish 10-year reaching a record 7.59% before falling back to 7.49%. In order to prevent massive losses, the Spanish regulator instituted a 3-month ban on shorting stocks following a move by the Italians to ban shorting financial stocks. Meanwhile, Moody's came out swinging, switching Germany, Holland, and Luxembourg to credit watch negative. Stocks, reacted to the bond weakness, with the German Dax slumping -3.18% followed by a -2.89% grind lower in the French CAC 40. The Italian MIB was also substantially weaker, falling -2.76%. EURUSD which fell below the 1.21 handle yesterday is trading at 1.2125.
While the Chinese central planners await the results of two consecutive rate cuts, the HSBC flash PMI figures indicate that manufacturing contracted at a slower pace in July than June. Asian stocks are ebbing near July lows as the European hangover continues to be a negative for investor sentiment. The yen has strengthened dramatically in the face of the weakness, with USDJPY falling -0.15% followed by a -0.11% drop in EURJPY. Japanese Finance Minister Azumi has threatened the speculators as the Yen trades near an 11-year high against the Euro. Stocks are lower, adding to a three-day slide with the Hang Seng dropping -2.99%. The fall in the Nikkei and Australian ASX has been a more moderated -0.42% and -0.13% respectively.
U.S. treasuries which yesterday saw record low yields have since bounced slightly but are still ebbing near lows. The 10-year note reached as low as 1.40% before rebounding to 1.42% as the Euro crisis deepens. There were no major announcements in the U.S. market yesterday but Ben Bernanke will be speaking later today as traders continue to bet the Chairman will announce further stimulus measures in the light of the declining economic picture. Goldman Sachs does see some positivity in the housing market, expecting soaring new home sales as the market recovers. Stock indices trended lower, reflecting sentiment in Europe. The Nasdaq fell -1.20% while the S&P 500 declined -0.89%. The Dow Jones was also weaker, dropping -0.79%. Wheat and soybean prices plunged over 2% apiece, highlighting that the steep rally in food prices might be pulling back.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
The Euro hit multiyear lows against its peers yesterday as fears of contagion agitated markets. Bond yields of Spain and Italy continued to rise with the Spanish 10-year reaching a record 7.59% before falling back to 7.49%. In order to prevent massive losses, the Spanish regulator instituted a 3-month ban on shorting stocks following a move by the Italians to ban shorting financial stocks. Meanwhile, Moody's came out swinging, switching Germany, Holland, and Luxembourg to credit watch negative. Stocks, reacted to the bond weakness, with the German Dax slumping -3.18% followed by a -2.89% grind lower in the French CAC 40. The Italian MIB was also substantially weaker, falling -2.76%. EURUSD which fell below the 1.21 handle yesterday is trading at 1.2125.
While the Chinese central planners await the results of two consecutive rate cuts, the HSBC flash PMI figures indicate that manufacturing contracted at a slower pace in July than June. Asian stocks are ebbing near July lows as the European hangover continues to be a negative for investor sentiment. The yen has strengthened dramatically in the face of the weakness, with USDJPY falling -0.15% followed by a -0.11% drop in EURJPY. Japanese Finance Minister Azumi has threatened the speculators as the Yen trades near an 11-year high against the Euro. Stocks are lower, adding to a three-day slide with the Hang Seng dropping -2.99%. The fall in the Nikkei and Australian ASX has been a more moderated -0.42% and -0.13% respectively.
U.S. treasuries which yesterday saw record low yields have since bounced slightly but are still ebbing near lows. The 10-year note reached as low as 1.40% before rebounding to 1.42% as the Euro crisis deepens. There were no major announcements in the U.S. market yesterday but Ben Bernanke will be speaking later today as traders continue to bet the Chairman will announce further stimulus measures in the light of the declining economic picture. Goldman Sachs does see some positivity in the housing market, expecting soaring new home sales as the market recovers. Stock indices trended lower, reflecting sentiment in Europe. The Nasdaq fell -1.20% while the S&P 500 declined -0.89%. The Dow Jones was also weaker, dropping -0.79%. Wheat and soybean prices plunged over 2% apiece, highlighting that the steep rally in food prices might be pulling back.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities. Visit Us www.deryworldscorp.web.id
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