- The risk rally from Friday continued in Asia. Asian equity market are up and EURUSD rallied to a 1-month high (1.2444) today. IMM data shows that EUR shorts at the IMM have been reduced to 6 weeks low ahead of the ECB meeting last week.
- Stocks: Nikkei +2.25 %, Hang Seng +2.08 %, Shanghai Composite Dow Jones +1.69 %, S+P500 +1.9 %
- Disagreements within the 17-nation euro area are undermining the future of the European Union, said Italy's Prime Minister Mario Monti as the stand-off on European Central Bank support for Italian and Spanish debt hardened.
- The "euro is irreversible" and it's "unacceptable" that financial markets believe some countries might leave the currency, European Central Bank Executive Board member Peter Praet said in an interview with De Standaard newspaper. - The European Central Bank should look at ways to ensure that its cheap loans reach households and businesses, Executive Board member Benoit Coeure said.
- The outcome of the Aug. 2 European Central Bank meeting is "an important step forward for the common currency and for spreads," Bank of Italy Governor Ignazio Visco told daily la Repubblica in an interview. There wasn't "division" between policy makers at the meeting, just "discussion", Visco said, adding that Bundesbank President Jens Weidmann expressed "well-known perplexities" regarding direct bond buying in the secondary market.
- Spain's Economy Minister Luis de Guindos said the country won't introduce more spending cuts or tax increases because it's on target to meet its budget deficit reduction goals, ABC newspaper reported.
- Poul Thomsen, the International Monetary Fund's representative to Athens, said talks with Greece's government "went well". "We made a lot of progress," Thomsen said today. "We will return in early September."
- Finance ministers from the euro area will meet on September 3 to discuss the economic situation in Greece and the possible action by the region's rescue fund to buy Spanish bonds, Italian news agency Ansa reported, citing unidentified European officials.
- China's yuan should depreciate to an "appropriate" degree to bolster exports as the economy weakens, an influential state newspaper urged on Monday, in a rare official affirmation of China's newfound desire to let its currency depreciate in a measured way. The official China Securities Journal said in a front-page commentary that yuan depreciation is now needed due to weakness in both the domestic and global economies.
- IMM Poitions: EUR -139k vs -155k, JPY 32k vs 25k, GBP -2k vs -3k, CHF -19k vs -25k, CAD 12k vs -2k, AUD 37k vs 27k, NZD 10k vs 8k
- 1500 Fed Bernanke (Topic: Economic Measurement)
- 1030 Eurozone Sentix Investor Conidence Aug
- 0900 UK Halifax house Prices July
- 0930 Sweden Service Production June
Have a good start !