Good Morning ,
- The risk is slightly on after FOMC meeting . And Eur/Usd trade just below 1.3100 level .
- Asian equity markets are mixed , Japans Nikkei225 +1.68% , Australia’s ASX +0.02 % , Koreas Kospi +1.38% , Chinas Shanghai Composite -1.02. % , and Hong kong Hang Seng -0.33 % . - Bank of Korea , holding rates at 2.75% for the 2nd consecutive month as expected .
- Swiss Economic outlook moderately positive . As a result of deteriorating global economic conditions, economic activity also slowed in Switzerland in 2012, with unemployment reporting a slight rise. How-ever, the growth in GDP clearly remained in positive territory (forecast 2012 +1%). The short term economic outlook for the months ahead is mixed, alt-hough there are still no signs of the situation worsening into a more pro-nounced downturn.
- EU finance ministers reached an agreement to supervise banks in the euro zone with a single regulatory body of the ECB. The central bank will supervise banks with assets over €30B or assets
- Greece has managed to buy back some of its debt, but did not succeed in reducing its total debt by as much as its backers had hoped. Holders of Greek debt agreed to sell 31.9bn euros of bonds back to the country at 33.8% of their face value, Greece's debt management agency said. After spending 11bn euros on the purchase, the country will be writing off about 20bn euros of debt. The buyback was a condition of Greece getting more of its bailout cash.
- Federal Reserve, as expected, left benchmark U.S. interest rates unchanged and said it would extend its bond-buying economic stimulus program. The Fed's program, which has also kept interest rates in a range of zero to 0.25 percent for four years, is being beefed up with a commitment to purchase $45 billion monthly in long-term U.S. Treasuries. This is in addition to buying $40 billion a month in agency mortgage-backed securities. For the first time the Fed tied its monetary policy to a specific target, saying it will keep benchmark rates near zero until the jobless rate hits a target of 6.5 percent, at which point it will reconsider its policy stance. The rate is currently at 7.7 percent, near a four-year low .
- JPY is the biggest mover on the day, falling to fresh 8-month lows against USD and EUR at 83.67 and 109.53 .
- The Reserve Bank of Australia (RBA) is being told by central bankers elsewhere that if the RBA truly wants to dampen the value of the Australian dollar then it should consider heavy intervention measures, according to The Australian Financial Review.
- Watch today : US Jobless Claims & Retail Sales , JPY Tankan report .