Good Morning ,
- The euro started the week near one-month highs against the dollar, having staged an impressive rally on hopes that Greece will finally secure more emergency loans to keep it afloat.
- The euro bought $1.2970, not far off Friday's peak of $1.2991, a high not seen since late October. Against the downtrodden yen, the common currency was at 106.85, having scaled a seven-month high around 106.98 on Friday.
- Asian markets mostly down, Europe trades ahead of Eurogroup , Japan's Nikkei Stock Average gained +0.24%, already at 7-month highs, while China's Shanghai Composite, Hong Kong's Hang Seng and South Korea's Kospi dropped on Monday by -0.46%, -0.27%, -0.15% . Australia's S&P/ASX 200 gained +0.25%.
- Euro zone finance ministers meet on Monday for a third time in as many weeks to hammer out a deal to get international lenders to release aid to Greece before debt repayments due mid-December. Germany Chancellor Angela Merkel said she was confident a deal could be reached, while the French finance minister said an agreement was close.
- Eurozone finance ministers are considering a possible “haircut” for Greece in 2015, imposing losses on its international lenders, a German newspaper reported on Nov. 25, in a bid to reduce the debt mountain of the recession-wracked country. Other Eurozone countries and institutions such as the European Central Bank (ECB) could be ready to discuss writing down a part of their Greek debt holdings to put Greece’s debt on a more sustainable footing, said the Welt am Sonntag. The issue was discussed at a secret meeting of ministers and officials in Paris on Nov. 19, said the paper, without citing sources.
- A write-down on Greek debt should not be part of the country's next rescue package, European Central Bank board member Joerg Asmussen told Germany's Bild newspaper ahead of Monday's euro zone group meeting.
- A report in German press indicating Eurozone fin mins are discussing a possible "haircut" for Greece in 2015 that may reduce Greece debt to GDP to 70% in 2020 vs 120% target.
- Voting has ended in Catalonia, Spain’s northeastern region. According to the exit polls, parties that support secession from Spain have a clear majority in the next parliament.
However, no party won an absolute majority. The ruling center-right, nationalist CiU party is set to win 54-57 seats, the left wing pro-party ERC is expected to double its presence with 20-23 seats, These parties alone already pass the threshold for a majority: 68 seats.
This could have implications for the euro. The leader of the autonomy movement Artur Mas lost over 10 parliament seats to the more pro-independence left-wing parties in the regional elections
- Yen falls to new lows after BOJ meeting minutes see some members calling for more action Two new members of the Bank of Japan (8301)’s nine-person policy board voted for a more expansionary wording of the bank’s price outlook released at its Oct. 30 meeting, minutes of the session show. Takehiro Sato and Takahide Kiuchi voted for phrasing that aggressive easing should continue until a 1 percent inflation goal “has been steadily maintained,” according to a summary released in Tokyo today.
- Japan Vice FinMin Takemasa: Wants Bank of Japan to pursue bold monetary policy * BOJ Shirakawa: Path toward Overcoming Deflation
- Reserve Bank of Australia Governor Glenn Stevens is considering retirement or an abbreviated reappointment when his seven-year term expires in September next year, around the time of a possible federal election.
- Last week six central banks took monetary policy decisions, with two cutting policy interest rates (Colombia and Georgia) and the remaining four (Japan, Turkey, Nigeria and South Africa) keeping rates unchanged.
- The consumer mood in Germany is the day’s main data point for Europe, while markets in the US await new numbers for a broad economic index and a regional manufacturing survey.