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Overnight Briefing

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7

0

U.S. equities declined

Fri, Dec 12 2008, 07:32 GMT
by Jyske Bank Team

Jyske Bank


  • The dollar declined

  • Auto bailout dies in U.S. Senate

  • The dollar dives below 90 yen

Today’s main events:

  • EUR: Industrial production

  • USD: Producer Price Index

  • USD: University of Michigan Confidence


American Time Zone:

U.S. equities declined

U.S. stocks declined for the second time this week after initial jobless claims jumped to a 26- year high and lawmakers said a USD 14 billion plan to rescue the nation’s auto industry lacks the votes to pass the Senate.
Bank of America Corp. and General Electric Co. slumped more than 3.6 % on government reports that 573,000 people applied for firsttime unemployment benefits last week and the trade gap deficit grew 1.1 % in October as exports decreased. General Motors Corp. and Ford Motor Co. slid more than 9.6 %. Hess Corp. led a rally in energy shares that limited the market’s retreat as oil climbed the most in five weeks.


The dollar declined

The dollar fell against all the major currencies as the cost of borrowing in the greenback tumbled, indicating less demand for year-end funding.
The euro broke through USD 1.34 for the first time in seven weeks as the U.S. trade deficit unexpectedly widened and European Central Bank Executive Board member Juergen Stark signalled policy makers are reluctant to keep cutting interest rates aggressively. The Swiss franc slid against the euro after the central bank cut borrowing costs to a four-year low.


Oil price sharply higher

Crude oil jumped 11 %, the biggest gain in 11 weeks, after the Saudi Arabian oil minister said he had delivered the output cuts promised to OPEC, a sign that world supplies are smaller than traders had estimated.


Far East Time Zone:

Auto bailout dies in U.S. Senate

The U.S. Senate failed on Thursday night to reach a last-ditch compromise to bail out automakers, effectively killing any chance of congressional action this year.
Republican-brokered talks faltered, leaving the chamber at a dead end on an approach for extending USD 14 billion in loans to avert a threatened collapse of one or more automakers, Senate Majority Leader Harry Reid said in remarks on the floor.
Markets across the Asia-Pacific region dropped more than three percent after news the U.S. automaker bailout talks had collapsed.


The dollar dives below 90 yen

The dollar hit a 13-year low below 90 yen on Friday after a proposal to bail out the U.S. auto industry failed in the Senate.

Traders fretted about Japanese government intervention as the dollar fell to 88.1 yen on trading platform EBS, it’s lowest since 1995.

Traders said they were eyeing an all-time low of 79.75 yen.
USD/JPY traded between 88.10 and 91.88.
EURJPY traded between 117.74 and 122.55.


Global markets

Asian stocks fell sharply on Friday after failure to find a compromise on a $14 billion carmaker bailout in the U.S. Senate put the industry in jeopardy, pushing up U.S. government debt and dragging down the dollar.

U.S. stock futures gapped lower and oil prices extended losses to trade below $46 a barrel after the majority leader of the U.S. Senate said a procedural vote over the bailout would be held later, but predicted it would not pass.

Asian shares had already been under pressure before the auto industry news because of unease about the shrinking financial sector and economic malaise, which doused the bargain hunting that had helped to drive up shares in the last week.
Japan's Nikkei share average sank 5.3 %, snapping four days of rises.

Published on  Fri, Dec 12 2008, 07:32 GMT

5

0

U.S. stocks gained

Thu, Dec 11 2008, 05:26 GMT
by Jyske Bank Team

Jyske Bank


  • Oil higher

  • House passes auto bailout, Senate prospects uncertain

  • China CPI up 2.4 %, below forecast

Today’s main events:

  • SEK: Unemployment

  • USD: Trade Balance

  • USD: Initial Claims


American Time Zone:

U.S. stock gained

U.S. stocks gained, recovering half of yesterday’s slide, as higher energy and metal prices triggered a rally in commodity producers that overshadowed concern Congress won’t rescue the nation’s auto industry. Chesapeake Energy Corp. jumped 23 % and Peabody Energy Corp. rallied 19 % as crude and coal increased. Freeport-McMoRan Copper & Gold Inc., the largest publicly traded copper producer, climbed 16 %. General Motors Corp. reversed a gain of more than 6 % and Ford Motors Co. pared most of its advance as Republican senators vowed to stall the rescue bill.


USD fell to two-week low

The dollar fell to a two-week low versus the euro and the yen declined as stock gains and government efforts to cushion against the global economic slump reduced the haven appeal of the currencies.


Oil higher

Crude oil climbed on speculation that the economy and energy demand will recover as U.S. lawmakers hammer out a USD 15 billion bailout of automakers.


Far East Time Zone:

House passes auto bailout, Senate prospects uncertain

The House of Representatives approved bailout legislation on Wednesday that would force U.S. automakers to restructure or fail, sending the measure to the Senate where prospects for passage are uncertain.
Democrats sought to reclaim momentum in the USD 14 billion bailout effort, with the bill they negotiated with the Bush administration clearing the chamber by 237-170.
Democrats advocated passage based on the belief that government inaction could lead to an industry collapse that would cost taxpayers far more than the loans intended to see them through March and help them restructure.
While the House stuck to its plan for quick action, uncertainty gripped the Senate where a razor-thin Democratic majority cannot ensure passage. Sixty votes are needed to clear procedural hurdles.
A vote could come as early as Thursday, but some Republicans have vowed to slow or even block the legislation.


China Nov CPI up 2.4 %, below forecasts

China's annual consumer price inflation fell to a 22-month low of 2.4 % in November from 4.0 % in October as the pace of food and non-food price increases both continued to decline.

The seventh consecutive monthly drop in CPI inflation, now well below February's peak of 8.7 %, shows price pressures are ebbing fast as the economy slows, giving the central bank room to cut interest rates still further after a slew of cuts since September.


Asian shares fell

Asian shares fell on Thursday as concerns over the global economy once again took centre stage, while renewed uncertainty about the U.S. auto bailout plan sparked a subtle shift towards assets seen safer such as the yen.
The MSCI index for Asia-Pacific stocks outside Japan was down 0.2 % at 0240 GMT, paring gains of 4.5 % a day earlier when investors had been encouraged by talks a U.S. bailout plan for auto makers had been reached.
Japan's Nikkei average fell 0.8 %. Major indexes in Australia and Singapore lost more than 1 % each, while Shanghai and Hong Kong posted more modest falls.

Published on  Thu, Dec 11 2008, 05:26 GMT

5

0

U.S. stocks slid

Wed, Dec 10 2008, 05:19 GMT
by Jyske Bank Team

Jyske Bank


  • Stocks fell in U.S.

  • AIG owes USD 10 billion

  • Tentative deal reached in U.S. auto bailout

  • Asia stocks rose

Today’s main events:

  • SEK: Industrial Production

  • SEK: Unemployment

  • NOK: Consumer Price Index

  • USD: MBA Mortgage Applications


American Time Zone:

U.S. stocks slid

U.S. stocks slid, halting a two-day advance, after companies from FedEx Corp. to Danaher Corp. forecast earnings that disappointed investors as the deepening recession crimps sales.
FedEx, the second-biggest U.S. packageshipping company, tumbled 14 % after projecting profit below analysts’ estimates amid a “significantly weaker” economy. United Parcel Service Inc., FedEx’s larger rival, lost 7 %. Danaher, maker of Craftsman tools, slid 4.2 %.
JPMorgan Chase & Co. and Wells Fargo & Co. dropped almost 7 % as yields on three-month Treasuries turned negative for the first time, signaling increasing stress in credit markets.


JPY higher

The yen rose versus the euro as European reports indicated the global economic slump deepened, increasing the haven appeal of the currency.
The euro weakened as an index showed German investors became more pessimistic this month about current economic conditions. The Canadian dollar fell after the central bank lowered its target lending rate to a half-century low and signaled more action may be needed.


Oil declined

Crude oil fell for the seventh time in eight days after the U.S. forecast that global demand will decline this year and in 2009 for the first time since 1983.


Far East Time Zone:

AIG owes USD 10 billion for soured trades

American International Group, once the world's largest insurer, owes around USD 10 billion to other financial services firms for trades that have gone sour, the Wall Street Journal reported in its online edition on Tuesday.
The report, citing people familiar with the matter, says the trades have not been explicitly disclosed before, and are not covered by terms of a current USD 150 billion U.S. government rescue package.
The government's rescue package was meant to save AIG from collapse, but the Wall Street Journal report says the newly discovered trades raise further questions about how the insurer will raise money to pay the debts.


Tentative deal reached in U.S. auto bailout talks

The White House and congressional Democrats on Tuesday night reached an agreement in principle on a USD 15 billion proposal for bailing out U.S. automakers, officials said.
A Bush administration official and a Democratic leadership aide said the accord covered key points but a few final details still needed to resolved and put in writing.
Democrats have arranged to have the U.S. House of Representatives vote on a bill as early as Wednesday and send it to the Senate for consideration.
The bailout is designed to allow GM and Chrysler to avert threatened bankruptcy through March with short-term loans. Ford Motor Co is not requesting immediate help but would like a line of credit in case its finances worsen.


Japan machinery orders slide as crisis hits firms

Japan's core machinery orders slid 4.4 % in October in another sign companies are slashing investment in the face of the financial crisis, pointing to a deeper and longer recession.
As well, annual wholesale price inflation slowed further in November as oil and other commodity prices fell, with signs that firms are cutting the prices they charge consumers.
With Japan's automakers and electronics firms such as Sony curbing production and slashing jobs, corporate investment -- an engine of Japan's growth in recent years -- is expected to further slow as weakening exports hit Japanese factories hard.
"The sharp drop in external demand indicates that the appetite for corporate capital outlays is declining globally," said Takeshi Minami, chief economist at Norinchukin  "Research Institute.
As yesterday's data showed a large fall in machine tool orders in November, demand for capital investment is nearly certain to decline further."


Stocks rose in Asia

The White House and Congressional Democrats reached tentative agreement on a plan to rescue the battered U.S. auto industry, while Japanese companies slashed machinery investment in October in another ominous sign for the world's second-largest economy.
In a rare bit of good economic news amid a torrent of gloom, a survey in Australia showed a surprise jump in consumer confidence for December, a sign that falling interest rates and fuel prices, combined with fiscal stimulus, are having their desired affect.
Asian stocks rose on Wednesday, shrugging off a down day on Wall Street that saw investors so frightened of risk that they bought USD 30 billion worth of four-week paper in a U.S. Treasury auction at zero percent interest.
The MSCI index of Asian stocks outside Japan was up 3,3 %, while Tokyo's main Nikkei index was up 3 % at 04.00 GMT as exporters gained on a softer yen. Oil increased by more than USD 1 a barrel to above USD 43 after dropping nearly 4 % on Tuesday.

Published on  Wed, Dec 10 2008, 05:19 GMT

6

0

U.S. equities rose

Tue, Dec 9 2008, 08:22 GMT
by Jyske Bank Team

Jyske Bank


  • The yen and the dollar declined

  • Japan deeper in recession

  • Japan mulling USD 260 billion economic package

Today’s main events:

  • SEK: Consumer Price Index

  • GBP: Trade Balance

  • DEM: Trade Balance & Current Account

  • DEM: ZEW Survey


American Time Zone:

U.S. equities rose

Stocks rose around the world, sending the Standard & Poor’s 500 Index to a one-month high, as President-elect Barack Obama pledged to boost the economy with the biggest publicworks spending package since the 1950s. U.S. Steel Corp. and Alcoa Inc. climbed at least 19 %, while Chevron Corp. added 5 %, as Obama’s plan to increase infrastructure spending spurred gains in commodities.

General Motors Corp. jumped as much as 25 % as lawmakers agreed in principle with the White House to provide funds to shore up the car industry. Benchmark indexes in Germany and France added more than 7.6 %, while Tokyo’s Nikkei 225 climbed 5.2 %, as Siemens AG and Komatsu Ltd. rallied.


The yen and the dollar declined

The yen and the dollar fell the most against the euro in two weeks as U.S. President-elect Barack Obama’s pledge to spend more on the nation’s infrastructure boosted stocks and reduced the currencies’ haven appeal.
Japan’s yen also slid against the Swedish krona and the Australian dollar after House Financial Services Committee Chairman Barney Frank said Congress and the Bush administration have reached an accord on an automaker rescue, prompting speculation investors will resume carry trades. The dollar dropped the most versus the pound in more than five weeks.


Commodities higher

Oil, copper and corn rose after President-elect Barack Obama pledged the biggest U.S. public works program in a half century to revive the economy.


Far East Time Zone:

Japan deeper in recession

Japan's economy sank deeper into recession in the third quarter than initially estimated, reinforcing fears that the world's No.2 economy is facing its longest contraction ever.

The export-driven economy now looks likely to keep shrinking at least until the first quarter of next year -- which would mark a post-warrecord four straight quarters of decline -- as leading manufacturers slash output to deal with a slump in global demand.
The government has called more spending, which one newspaper said could total USD 216 billion, or around 3.6 % of gross domestic product (GDP).

The euro zone and the United States are also in recession, and growth is slowing in big emerging markets such as China, boding ill for major Japanese exporters such as Toyota and Sony.

Japan's economy contracted 0.5 % in July- September, far more than the preliminary figure of a 0.1 % decrease, revised GDP figures showed on Tuesday. It was also a bigger slide than economists' median forecast for a 0.2 % fall.


Japan mulling USD 206 billion economic package

The Japanese government and ruling parties are mulling a new economic package that includes spending worth 15 trillion to 20 trillion yen (USD 162 billion to USD 216 billion) over the next three years, the Yomiuri newspaper reported on Tuesday without citing a source.

Japan is in the midst of a recession, with revised growth figures on Tuesday showing the economy shrank much more than first thought in the third quarter.

But voter support is tumbling for Prime Minister Taro Aso's government, with polls showing many Japanese want an early election even as he tries to work on resuscitating the economy in the midst of the global financial crisis.

The planned new spending would be financed through an extra budget for the current fiscal year to March 31st and use of some budget spending from the following year, the Yomiuri said.

The new package would bring forward some highway construction and promote energy saving technologies, and would prioritise on funding medium- to long-term policies that help boost domestic demand as well as help individuals, the newspaper reported.

Japan has revealed two economic packages since August, but Aso, who took office in September, has said Japan's economic problems would require three years to heal.

Published on  Tue, Dec 9 2008, 08:22 GMT

11

0

Equities rose in New York

Mon, Dec 8 2008, 05:51 GMT
by Jyske Bank Team

Jyske Bank


  • The dollar rose after employment report

  • Oil price jumped 4 %

  • Japan bank lending growth record as markets dry up

Today’s main events:

  • GBP: Producer Price Index

  • DEM: Industrial Production

  • EUR: Trichet speaks

  • USD: FED’s Kohn & Fisher speaks


American Time Zone:

Equities rose in New York

U.S. stocks rose reversing an earlier slide, as Hartford Financial Services Group Inc. led a rally in insurers after increasing its profit forecast and saying its businesses are weathering the credit crisis.
Hartford, which tumbled 92 % in 2008 before today, doubled to lead an advance in 20 of 21 insurance companies in the Standard & Poor’s 500 Index. Prudential Financial Inc. and MetLife Inc. climbed more than 15 % as UBS AG said they may benefit from potential regulatory changes. The gains helped the market overcome a morning slide spurred by government data showing the nation lost the most jobs in 34 years as the recession deepened last month.


The dollar rose after employment report

The dollar rose against the euro for the first time in four days as the U.S. payrolls report showed the biggest job losses in 34 years, increasing the haven appeal of the greenback.
Japan’s yen was headed for a fifth weekly gain versus the dollar, its longest rally since December 2004, as speculation rose that the Federal Reserve will cut borrowing costs to near zero this month.


Oil price lower in New York

Crude oil fell to the lowest in almost four years on concern fuel demand will drop after a government report showed that U.S. employers cut jobs in November at the fastest pace since 1974.


Far East Time Zone:

Oil price jumped 4 %

Oil jumped 4 % to above USD 42 on Monday, clawing back a share of the near-record decline last week when negative economic data heightened fears about the impact of a global recession on fuel demand.

With few signs of immediate economic improvement, traders said the best chances for a rebound in oil prices more than USD 100 off their peaks rested with a U.S. auto sector bailout and next week's OPEC meeting in Algeria.

U.S. crude for January delivery rose USD 1.59 to USD 42.40 a barrel by 0202 GMT after closing on Friday at USD 40.81, the lowest settlement since December 10th, 2004. Oil shed a quarter of its value last week; the sharpest weekly fall since January 1991.


Japan bank lending growth record as markets dry up

Japanese bank lending growth hit a record high in November, with companies tapping their credit lines as access to funds through financial markets narrowed in the wake of the global credit crisis.

Underscoring the pain from the global downturn on Japan's economy, the current account surplus in October more than halved from a year earlier as exports fell and high oil prices until the middle of this year bloated import bills.

Fund-raising has increasingly become a headache for many firms already struggling from slack exports and consumption as the global downturn looks set to hit Japan's economy, already in its first recession in seven years, well into next year.

Reflecting weakening corporate activity, revised GDP data due on Tuesday is expected to show the Japanese economy shrank 0.2 % in July- September, double the preliminary reading of a 0.1 % fall, according to a Reuters poll.

Bank lending grew 3.2 % from a year earlier in November, accelerating from revised growth of 2.1 % in October and marking the biggest increase since records became available in 2001, Bank of Japan data showed on Monday.

The outstanding balance of commercial paper dropped 9.9 % in November from a year earlier after an 8.5 % fall in October, posting the largest decline in nearly two years.

Published on  Mon, Dec 8 2008, 05:51 GMT

8

0

USD fell ahead of employment report

Fri, Dec 5 2008, 08:49 GMT
by Jyske Bank Team

Jyske Bank


  • Oil close to four year low

  • Asian shares rose

Today’s main events:

  • NOK: Manufacturing Output

  • SEK: Riksbanks Öberg speaks

  • DEM: Factory Orders

  • USD: Nonfarm Payrolls


American Time Zone:

U.S. Stocks fell

U.S. stocks fell for the first time in three days, pushed down by concern General Motors Corp. may file for bankruptcy and a plunge in energy shares following Merrill Lynch & Co.’s prediction that oil will hit USD 25 a barrel.

GM lost 16 % after a person familiar with the matter said the largest U.S. automaker is exploring reorganization with workers, creditors and lenders. Southwestern Energy Co., EOG Resources Inc. and Exxon Mobil Corp. slumped, sending the Standard & Poor’s 500 Energy Index to a 6.2 % decline. Apple Inc. slipped 4.7 % as Nokia Oyj said the global mobile-phone market will shrink 5 % or more next year.


USD fell ahead of employment report

The dollar fell from a two-week high against the euro on bets a U.S. report forecast to show the highest unemployment rate since 1993 will add to the case for the Federal Reserve to lower interest rates toward zero.

The pound dropped to a record low versus the euro after the Bank of England cut its main interest rate to the lowest level since 1951. The euro fell earlier versus the dollar as European The Nikkei average was up 0.3 %, while key indexes in South Korea , Hong Kong and Singapore were up between 1 and 2 %. Central Bank President Jean-Claude Trichet delivered the biggest interest-rate cut in the bank’s 10-year history.


Oil close to four year low

Crude oil fell to the lowest in almost four years as the deepening recession in the U.S., Europe and Japan cuts fuel consumption. Prices may dip below USD 25 a barrel next year if the recession spreads to China, Merrill Lynch & Co. said in a report Thursday.


Far East Time Zone:

Asian shares rose

Asian shares rose on Friday following record rate cuts by central banks in Europe, though risk aversion remained, lifting the dollar ahead of what is expected to be dismal U.S. employment data.

Oil prices steadied after slumping USD 3 on Thursday to their lowest level in nearly four years amid bleak economic data that could spell a deeper decline in global energy demand.

Caution was likely to prevail in broader global markets despite the recent sell-offs, with concerns also focusing on the fate of U.S. auto makers, which are seeking billions of dollars in government aid.

The Nikkei average was up 0.3 %, while key indexes in South Korea , Hong Kong and Singapore were up between 1 and 2 %.


China and U.S. have “robust” talks

China and the United States had "robust" talks about the implications of current financial turmoil on their economies and the importance for China of having domestic-led growth and a market-driven exchange rate, U.S. Treasury Secretary Henry Paulson said on Friday.

In a closing statement after the fifth round of the cabinet-level Sino-American "Strategic Economic Dialogue", Paulson welcomed recent steps by Beijing to boost home-grown demand.

"As in the past, we discussed the importance of domestic-led growth, and the importance of a market-determined currency in promoting balanced growth in China that will contribute to a healthy global economy," Paulson said.

He said the export-import banks of both countries had made an additional USD 20 billion for trade finance available, particularly for creditworthy importers in developing economies.

"Both nations reiterated the importance of completing a successful Doha round and meaningful progress toward that goal by the end of this year," Paulson added, referring to the World Trade Organisation's long-running Doha round of market-opening talks.

Published on  Fri, Dec 5 2008, 08:49 GMT

8

0

U. S. Stocks rose again

Thu, Dec 4 2008, 07:18 GMT
by Jyske Bank Team

Jyske Bank


  • EUR lower ahead of rate announcement

  • New Zealand cut rates

  • Yen and dollar steadies

Today’s main events:

  • SEK: Interest Rate Decision

  • GBP: Interest Rate Decision

  • EUR: Interest Rate Decision

  • USD: Factory Orders


American Time Zone:

U.S. Stocks rose again

U.S. stocks rose for a second day as a jump in online spending and a record increase in mortgage applications lifted retailers and banks, overshadowing concern the worsening recession will reduce demand for commodities.

Amazon.com Inc. rose 10 % after research firm ComScore Inc. said Internet purchases at U.S. retailers increased 15 % on Dec. 1. Morgan Stanley and Pulte Homes Inc. climbed more than 13 % as government cash injections into the mortgage market spurred the increase in home-loan applications.

Freeport-McMoRan Copper & Gold Inc. slid 17 % as the largest public copper company cut production and suspended its dividend amid “dramatic” price drops.


EUR lower ahead of rate announcement

The euro traded near a one-week low against the dollar on bets the European Central Bank will cut borrowing costs by a half-percentage point tomorrow.

The yen fell against the dollar and the euro after stocks erased losses, prompting speculation that investors will sell higher-yielding assets and pay back low-cost loans in Japan at a slower pace.

The pound dropped against the yen, the dollar and the euro as services in the U.K. shrank at the fastest rate in at least 12 years and consumer sentiment fell.


New Zealand cut rates

New Zealand’s central bank cut its benchmark interest rate by a record 1.5 percentage points to 5 % to help steer the economy out of it worst recession in 18 years.


Oil declined further

Crude oil fell after an Energy Department report showed that U.S. refineries curbed operating rates as the recession crimps fuel demand.


Far East Time Zone:

Yen and dollar steadies

The yen and the dollar steadied against other major currencies on Thursday ahead of interest rate decisions in the euro zone and Britain, after having risen earlier on concerns about a long and deep global recession.

But euro and the British pound remained vulnerable before decisions by the central banks, with expectations high that they will ease monetary policy aggressively to boost deteriorating economies and counter the threat of deflation. Asian shares rose after a late rally in U.S. stocks, but demand for the low-yielding yen and the safe-haven greenback was intact after a slew of dismal data around the world kept investors concerned about the depth of the global recession.

Japanese companies cut investment in the third quarter by a higher-than-expected 13 % from a year ago, a report showed, leading economists to expect the country's gross domestic product data, which has already initially shown a contraction, will be adjusted lower.

"Having seen weak economic numbers coming in one after another, it's difficult for market sentiment to improve dramatically," a senior trader at a major Japanese bank said.

The euro fell 0.1 % from late New York trade at USD 1.2709. The European Central Bank is seeing cutting rates on Thursday by at least 50 basis points to 2.75 %, but many economists are expecting a 75 basis point cut.

Sterling was down 0.1 % to USD 1.4770, having pared some losses made after data showing that Britain's service sector shrank faster than expected in November. Against the yen, it edged down 0.1 % to 137.75 yen but stayed above a 13-year low around 136.30 yen hit the previous day.

Published on  Thu, Dec 4 2008, 07:18 GMT

5

0

U.S. Stocks rose

Wed, Dec 3 2008, 06:34 GMT
by Jyske Bank Team

Jyske Bank


  • Oil at three year low

  • Australia economic growth slows

  • Citigroup “core” Japan units not for sale

Today’s main events:

  • EUR: Retail Sales

  • USD: ADP Employment Change

  • USD: FED’s Beige Book

  • NZD: Interest Rate Decision


American Time Zone:

U.S. Stocks rose

U.S. stocks rose, rebounding from the market’s worst tumble since October, after General Electric Co. announced plans to maintain its dividend and the Federal Reserve extended terms of three emergency loan programs.

GE jumped 13 % and contributed the most to the gain in the Standard & Poor’s 500 Index.
Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. advanced at least 9.3 % to lead a recovery in S&P 500 financial shares a day after the group’s biggest drop on record as the Fed said it will continue the lending programs until the end of April.

May contracts on the Chicago Board Options Exchange Volatility Index, or VIX, closed yesterday at 43.80, while futures expiring before then trade at higher levels, showing investors expect the S&P 500 to rise or fall at least 2.8 % a day through June 17, according to data compiled by Bloomberg. The last time the benchmark index for U.S. stocks moved that much during the same-sized span was 1932.


USD and JPY declined

The dollar and the yen declined the most against the euro in a week as central banks acted to stem the economic slump, reducing the currencies’ haven appeal.

The yen fell against the South African rand and Norway’s krone as the Bank of Japan said it will accept lower-grade corporate debt as collateral for loans.


Oil at three year low

Crude oil fell to the lowest in more than three years on signs the U.S., the world’s largest energy consumer, may be in the longest slump since World War II.


Far East Time Zone:

Australia economic growth slows

Australia's economy grew at its slowest pace in eight years last quarter as a gathering recession abroad and evaporating equity wealth at home crimped spending by consumers and businesses alike.

Were it not for a change in the weather which boosted the farm sector, the economy would have shrunk last quarter, highlighting how close Australia was to its own recession and underlining why the Reserve Bank of Australia (RBA) has slashed interest rates by 3 percentage points since September.

"The economy looks like it ground to a halt last quarter," said Michael Blythe, chief economist at Commonwealth Bank. "We ended up on the right side of the zero line, but there's not much margin for error from here."

Wednesday's report showed gross domestic product (GDP), or the value of all goods and services produced in Australia, rose a bare 0.1 % in the third quarter to an inflation-adjusted AUD 273.3 billion (USD 176 billion). That was under already subdued forecasts of a 0.2 % increase and compared to a 0.4 % rise in the second quarter.

After stripping out an improvement in agriculture thanks to an easing in the country's drought, the non-farm economy actually contracted by 0.3 % last quarter.

Compared to the third quarter of last year, GDP grew by 1.9 %, a sharp slowdown from 2.9 % the previous quarter and over 4.0 % in the third quarter of 2007.

Investors continue to price in more rate cuts from the RBA, which chopped its key cash rate by a bold 100 basis points to 4.25 % at its monthly policy meeting on Tuesday.
Interbank futures suggest rates could approach 3.0 % next year, levels not seen since the early 1960s.

Citigroup “core” Japan units not for sale Citigroup Inc said it has no plans to sell its brokerage and investment banking units in Japan, responding to speculation they could be unloaded as part of a global asset sale by the struggling U.S. bank.

It has no plans to sell broker Nikko Cordial Securities, investment bank Nikko Citigroup Ltd or other "core businesses in Japan", Citigroup's holding company in Japan said in a statement.
"Citigroup has exceptional businesses in Japan and our focus remains on delivering a universal bank model to our customers," Douglas Peterson, chief executive of Nikko Citi Holdings, said in the statement.

Citigroup did not mention trust bank unit NikkoCiti Trust and Banking Corp, which Japanese media has said would be sold in a deal that could raise up to 40 billion yen.


Oil rises more than USD 1

Oil rose towards USD 48 a barrel on Wednesday, recovering from a tumble of more than USD 100 off July peaks, but the upside could be limited, with further signs of weakening oil demand expected in upcoming weekly U.S. oil data.

Prices have lost more than 13 % since last week to stand at three-and-a-half-year lows, on a gloomy economic outlook and after OPEC deferred a likely third supply cut to later in December, while showing imperfect compliance with the two cuts it has already agreed on.

U.S. light crude for January delivery rose USD 1.04 to USD 48.00 a barrel by 3:30 GMT, having earlier risen as high as USD 48.05.

The contract settled down USD 2.32 at USD 46.96 on Tuesday, its lowest settlement since May 2005, after having broken through USD 47.27, USD 100 below its record high hit in July.

Published on  Wed, Dec 3 2008, 06:34 GMT

8

0

U.S. Stocks slid

Tue, Dec 2 2008, 05:54 GMT
by Jyske Bank Team

Jyske Bank


  • JPY higher as stocks drop

  • Australia cuts interest rate with 100 bp

  • Japan business mood slides

  • Oil hits 3 ½ year low

Today’s main events:

  • NOK: Current Account

  • CHF: Consumer Price Index

  • EUR: Producer Price Index


American Time Zone:

U.S. Stocks slid

U.S. stocks slid, halting a five-day advance, on growing concern the global economic slump is deepening and consumers’ access to credit is shrinking.

General Electric Co. and Caterpillar Inc. lost more than 6 % following a report that manufacturing contracted at the fastest pace in 26 years. American Express Co. and JPMorgan Chase & Co. fell more than 9 % on Oppenheimer & Co. analyst Meredith Whitney’s prediction that credit-card companies will cut available lending by 45 %, or more than USD 2 trillion.

Treasuries rose, pushing yields to record lows, as Federal Reserve Chairman Ben S. Bernanke said the central bank may buy bonds to combat the worsening recession.


JPY higher as stocks drop

The yen rose against the euro and the dollar as shrinking global manufacturing and a drop in stocks prompted speculation investors will buy back Japan’s currency at the expense of higher-yielding assets.

The dollar appreciated to a one-week high versus the euro as investors sought the relative safety of U.S. government debt.


Oil fell as OPEC delay decision

Crude oil fell below USD 50 a barrel after the Organization of Petroleum Exporting Countries deferred a decision to reduce output until its next meeting on Dec. 17.


Far East Time Zone:

Australia cuts interest rate with 100 bp

Australia's central bank cut its key benchmark cash rate 100 basis points to 4.25 % on Tuesday, the fourth easing in as many months, as it fought to save the economy from a global recession.

The move by the Reserve Bank of Australia (RBA) brought its combined cuts since September to an eye-popping 300 basis points, the most aggressive easing since the recession of the early 1990s.

In a brief statement following its monthly policy meeting, the central bank said a further significant reduction in cash rates was warranted to take policy to an expansionary setting. RBA also said a significant slowdown in domestic demand was underway and domestic inflation would likely soon start to fall.
Financial market sentiment was fragile, world growth was slowing and global inflation was set to moderate significantly.


Japan business mood slides

Confidence among Japanese manufacturers fell at its sharpest pace on record in November, fuelling debate about rate cuts, as the Bank of Japan meets to consider measures to ease a squeeze on funding for firms.

Japanese stocks slid 4.7 % and the yen firmed to a one month high, as global manufacturing figures painted a bleak outlook for the world's factories.

The BOJ will hold an emergency policy meeting from 4:00 GMT to discuss measures to help ease a squeeze in credit markets as firms face a tough time securing finance to tide them over the end of the year.

No change in rates is expected at the meeting, which will be followed by news conference comments from Governor Masaaki Shirakawa, due for release around 7:00 GMT.

The Reuters Tankan, a monthly poll of big Japanese firms that tracks the BOJ's closely watched quarterly tankan next due on Dec. 15, showed business confidence had fallen sharply to its lowest in seven years.


Oil hits 3 ½ year low

Crude oil fell more than USD 1 a barrel to just above a 3- year low on Tuesday, extending the previous session's falls as gloom about the economy grew and after producer group OPEC decided to leave output unchanged. By 4:30 GMT, U.S. light crude for January delivery traded USD 1.52 lower at USD 47.76 a barrel.

Published on  Tue, Dec 2 2008, 05:54 GMT

5

0

U.S. Stock market closed

Fri, Nov 28 2008, 05:59 GMT
by Jyske Bank Team

Jyske Bank


  • CAD fell vs. USD

  • Yen holds firm despite weak data

  • NZD lower on building data

Today’s main events:

  • SEK: GDP, Retail Sales and Current Account

  • EUR: CPI

  • EUR: Unemployment Rate

  • CHF: KOF Leading Indicator


American Time Zone:

U.S. stock market closed

Due to the Thanksgiving holiday, the U.S. stock market was closed on Thursday.


CAD fell vs. USD

The Canadian dollar fell 0.5 % against the U.S. dollar on Thursday as investors - with U.S. markets closed for Thanksgiving Day - focused on sagging commodity prices.

The Canadian dollar was at CAD 1.2358 to the U.S. dollar, down from CAD 1.2302 to the U.S. dollar at Wednesday's close.


Far East Time Zone:

Yen holds firm despite weak data

The yen held firm against the dollar in thin trade on Friday as fears of a long and deep global recession continued to highlight the relative safety of the low-yielding Japanese currency.

Japanese industrial production slid more than expected in October and manufacturers warned of record cuts ahead, in bleak news that points to more trouble for an economy already in recession.

Activity is expected to pick up later in the day as U.S. markets reopen after the Thanksgiving holiday, but price movements in Asia could be confined to a tight range due to month-end flows.

The dollar was trading at 95.30 yen, down slightly from late European trade on Thursday around 95.41 yen on demand from Japanese companies who need to pay for their imports at the end of the month. But talk of Japanese investors repatriating funds provided support for the yen.

The euro was little moved around 123.00 yen.and USD 1.2890.


NZD lower on building data

The New Zealand dollar eased slightly in light trade on Friday after domestic data showed building approvals hit a record low in October, reflecting an economy in recession.

Kiwi dribbles lower from opening levels around USD 0.5540, as risk appetite remains muted on fears over the global economic outlook. New building approvals fell 22 % in October, reinforcing the sharp slowdown in the housing market.

Local attention turns to the central bank's interest rate review on Dec 4, with a Reuters poll picking a 100 basis point cut to the 6.50 % official cash rate.

Published on  Fri, Nov 28 2008, 05:59 GMT

6

0

ECB's Nowotny: More room for rate cut

Wed, Nov 26 2008, 05:49 GMT
by Jyske Bank Team

Jyske Bank


  • JPY higher

  • Dollar up vs. euro

  • Oil lower ahead of inventory report

Today’s main events:

  • SEK: Consumer Confidence

  • DEM: Consumer Price Index

  • GBP: Gross Domestic Product

  • USD: Personal Spending, Jobless Claims and New Home Sales


American Time Zone:

U.S. Stocks

U.S. stocks drifted between gains and losses as an USD 800 billion Federal Reserve plan to help resuscitate lending offset concern that the recession is reducing sales of computer products.

SLM Corp., the student lender known as Sallie Mae, rallied 19 %, while CIT Group Inc., the commercial-finance company, jumped 17 % after the Fed said it will use the funds to buy mortgage-related debt and support loans to consumers and small businesses. Hewlett-Packard Co. lost 6.4 % and Cisco Systems Inc. slid 5.6 % as UBS AG analysts said demand is weakening. Analog Devices Inc. led chipmakers lower after predicting a drop in revenue.


JPY higher

The yen rose against the euro and the dollar for the first time in three days on bets a deepening global recession will prompt investors to sell higher-yielding assets funded by low-cost loans in Japan’s currency.

The dollar pared its drop against the euro as U.S. stocks reduced gains that came after the Federal Reserve committed up to USD 800 billion to thaw the flow of credit.


Oil lower ahead of inventory report

Crude oil fell on speculation that a U.S. Energy Department report will show that inventories climbed for a ninth week as demand declined.


Far East Time Zone:

Nikkei slips

Japan's Nikkei average slipped 1.2 % on Wednesday, pressured lower as Kyocera Corp and other exporters slid in the wake of their U.S. peers on fears that the worsening economy would hit demand.

Honda Motor Co and other exporters fell on a stronger yen, but so-called defensive shares - seen as resilient in the face of economic uncertainty, especially overseas - provided support.

The benchmark Nikkei shed 102.99 points to 8,220.94, a day after it posted its biggest one-day gain in two weeks. The broader Topix lost 1.8 % to 816.59.


ECB’s Nowotny: More room for rate cut

Receding worries about inflation have made room for another interest rate cut by the European Central Bank, Governing Council member Ewald Nowotny told Japan's Nikkei newspaper.

Europe is facing major difficulties and the euro zone economy could contract next year due to the impact of the financial turmoil, Nowotny was quoted as saying in the paper's Wednesday morning edition.

Inflation expectations, on the other hand, are receding, making room for another ECB rate cut, said Nowotny, who is also governor of the Austrian central bank.

On the euro's recent weakening against the dollar, Nowotny said the dollar's current rises were unsustainable and that rapid currency moves should be avoided.

Two quick-fire 50 basis point cuts since October have brought benchmark euro zone interest rates to 3.25 %. Analysts think they could fall to 2 % or lower next year if the region's recession evolves into a major long-term slump. The ECB next meets on Dec. 4.


Dollar up vs. euro

The dollar inched up against the euro on Wednesday as market players remained sceptical that the latest U.S. measures to boost consumer lending would ease concerns about the financial crisis.

Market players were doubtful that successive U.S. steps aimed at restoring confidence in the financial system and shoring up the deteriorating economy would be sufficient, traders said. Worries over the global economic downturn and credit jitters have kept investors wary of taking risks, limiting selling of the dollar and yen, traders said.

While the yen has been outperforming overall on growing investor confidence in its safe haven status, sentiment towards the dollar may be turning bearish, some traders said.

The euro eased 0.7 % to USD 1.2980, after hitting a three-week high of USD 1.3081 hit on Tuesday on trading platform EBS as the new rescue steps eased credit concerns and eroded the dollar's appeal as a safe haven, traders said.

The dollar edged down 0.1 % against the yen to 95.15 yen. The euro fell 0.8 % against the Japanese currency to 123.50 yen as the Nikkei slipped.

Published on  Wed, Nov 26 2008, 05:49 GMT

13

0

U.S. equities rose again

Tue, Nov 25 2008, 05:44 GMT
by Jyske Bank Team

Jyske Bank


  • The dollar fell after Citigroup rescue

  • EU executive to propose VAT cuts

  • Global Markets

  • Euro/yen down on profit-taking

Today’s main events:

  • DEM: GFK Consumer Confidence

  • NOK: GDP

  • USD: Consumer Confidence

  • USD House Price Index


American Time Zone:

U.S. equities rose again

U.S. stocks were headed for the biggest two-day rally since 1987 after the government said it will guarantee USD 306 billion of troubled Citigroup Inc. assets and lawmakers pledged to pass another economic stimulus package.
Citigroup, which lost more than 60 % of its market value last week, rebounded 53 % after the Treasury Department also agreed to inject USD 20 billion into the bank.
JPMorgan Chase & Co. added 18 % and Bank of America Corp. jumped 22 % as the government’s moves boosted confidence in the financial system. Alcoa Inc. and Microsoft Corp. climbed more than 4.1 % on speculation a new stimulus will spur economic growth.


The dollar fell after Citigroup rescue

The dollar had its biggest two-day loss against the euro this month as Citigroup Inc. received USD 306 billion of U.S. government guarantees for its troubled assets, reducing demand for the greenback as a haven.
The yen dropped versus the euro and the dollar on speculation a U.S. stock rally on the rescue will slow the sale of higher-yielding assets funded by low-cost loans in Japan’s currency.


Commodities rose

Crude oil, copper and corn rose as a U.S. rescue of Citigroup Inc. shored up investor confidence and a weaker dollar enhanced the appeal of commodities


Far East Time Zone:

EU executive to propose VAT cuts

The European Commission will propose on Wednesday measures to stimulate the recession-hit European economy including value-added tax cuts and a call for lower ECB interest rates, a draft document showed on Monday.

The draft proposal, seen by Reuters, did not specify the size of the stimulus plan, which Germany said last week could be worth some one percent of the European Union's gross domestic product (GDP), or 130 billion Euros.

The final size of the programme, aimed at helping the EU limit the fall-out from the financial crisis, will be decided on Wednesday after consultations with national governments by Commission President Jose Manuel Barroso. It will then be discussed at an EU summit on Dec 11-12.

The paper attempts to bridge differences of opinion between bloc leaders on how to kickstart the European economy, EU sources said.


Global markets

Asian shares rose on Tuesday and so-called safe haven assets such as bonds fell after the U.S. government rescued banking giant Citigroup to prevent further damage to the ailing global financial system.

The yen recovered from sharp falls a day earlier and gained against major currencies, but some traders said the Japanese currency could stall in the near term if investors continued to return to battered equity markets and other riskier assets.

Oil prices retreated below USD 54 after surging more than 9 % in the previous session, a rally that was big enough to send regional commodity-related stocks such as BHP Billiton sharply higher.

But shares gave up some of their early gains as plenty of near-term risks remained, including whether other global lenders are in need of rescue, the fate of U.S. auto makers and indicators that continue to signal a rough road ahead for the global economy.

Japan's Nikkei jumped nearly 3 %, resuming trade after a public holiday on Monday.


Euro/yen down on profit-taking

The yen edged up against the euro on Tuesday after falling around 5 % the previous day on a rally in U.S. stocks as the U.S. government agreed to inject USD 20 billion of new capital to rescue troubled Citigroup.

While investors remain cautious due to persistent worries about credit crisis and global economic downturn, a recovery in stock markets could spur some risk taking, causing the yen to pause from recent gains in the near term, traders said. Japanese financial markets were closed on Monday for a national holiday.

The fall in the euro against the yen was led by profit taking and Asian players adjusting positions after the single currency rose nearly seven yen on Monday, with thin volume exaggerating price moves, traders said.

Published on  Tue, Nov 25 2008, 05:44 GMT

0

0

U.S. equities rose

Mon, Nov 24 2008, 05:48 GMT
by Jyske Bank Team

Jyske Bank


  • The yen weaker on late stock rally

  • Norway said it will put aside an additional 50 billion kroner

  • U.S. agrees to Citigroup bailout

Today’s main events:

  • DEM IFO Business Climate

  • EUR Euro-Zone Current Account

  • EUR Industrial New Orders

  • USD Existing Home Sales


American Time Zone:

U.S. equities rose

U.S. stocks rallied and the Standard & Poor’s 500 Index rebounded from an 11-year low after President-elect Barack Obama picked New York Federal Reserve Bank chief Timothy Geithner to head the Treasury.

National-Oilwell Varco Inc. and Chesapeake Energy jumped more than 20 % as oil rose for the first time in six days. The rally came after this week’s rout dragged the S&P 500’s priceto- earnings valuation to the cheapest since 1995.

The S&P 500, which capped a third-straight weekly decline, gained 6.3 % to 800.01. The Dow Jones Industrial Average rose 494.37 points, or 6.6 %, to 8,046.66, while the Nasdaq Composite Index added 5.2 % to 1,384.35.
Almost five stocks gained for each that fell on the New York Stock Exchange.


The yen weaker on late stock rally

The dollar and JPY recorded a third weekly gain against the euro as a plunge in global stocks during the week increased demand for the safety of U.S. government debt and the closure  of carry trades.
However, the announcement late Friday that President elect Obama will nominate Timothy Geithner as new Treasury secretary sent stocks rallying with the JPY giving up earlier gains


Oil price higher

Crude oil rose for the first time in six days as OPEC members cut production and governments step up efforts to revive economic growth.


Far East Time Zone:

Norway said it will put aside an additional 50 billion kroner

The Norwegian government Sunday said it will put aside an additional 50 billion kroner (USD 7 billion) for the state export credit agency to ease the effect of the global credit crunch on businesses.

The government said it will raise the funds for Garanti-instituttet for eksportkreditt, or GIEK, by 50 billion to 110 billion kroner (USD 15.4 billion).
GIEK insures Norwegian businesses against losses in connection with exports by stepping in as a guarantor on loans taken by those who buy Norwegian goods or services. It is also an important player on the Norwegian market for short-term customer credit insurance.
"A significantly increased framework for GIEK secures Norwegian business contracts abroad and investments at home," Prime Minister Jens Stoltenberg said in a statement. "This is one of many efforts by the government to meet the setback in the international economy."
GIEK Chief Wenche Nistad welcomed the extra money and said it shows the government understands the magnitude of the needs of businesses.


U.S. agrees to Citigroup bailout

The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup Inc. by moving to guarantee close to USD 300 billion in troubled assets weighing on the bank's books, according to people familiar with details of the plan.

Treasury has agreed to inject an additional USD 20 billion in capital into Citigroup under terms of the deal hashed out between the bank, the Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corp. Treasury officials will charge a higher interest rate for the capital injection -- 8% for the first few years -- than it has charged to dozens of other banks now borrowing money under the government's the USD 700 billion rescue package approved by Congress last month.

In addition to the capital, Citigroup will have an extremely unusual arrangement in which the government agrees to backstop a roughly USD 300 billion pool of its assets, containing mortgage-backed securities among other things. Citigroup must absorb the first USD 37 billion to USD 40 billion in losses from these assets. If losses extend beyond that level, Treasury will absorb the next USD 5 billion in losses, followed by the FDIC taking on the next USD 10 billion in losses. Any losses on these assets beyond that level would be taken by the Fed.

Citigroup would also agree to work to modify -- if possible -- troubled mortgages held in the USD 300 billion pool, using standards created by the FDIC after the collapse of IndyMac Bank. The government is not expected to require any management changes, as that was seen as potentially being too destabilizing.

Published on  Mon, Nov 24 2008, 05:48 GMT

21

0

U.S. stocks fell

Fri, Nov 21 2008, 06:02 GMT
by Jyske Bank Team

Jyske Bank


  • Oil below 49 USD

  • BoJ kept rates unchanged at 0,30 %

  • Nikkei turned around to positive, at the end

Today’s main events:

  • DEM: PMI

  • EUR: PMI

  • EUR: Gonzalez-Paramo & Nowoltny speaks

  • USD: Lacker, Evans & Plosser speaks


American Time Zone:

U.S. stocks fell

U.S. stocks fell U.S. stocks slid and the Standard & Poor's 500 Index plunged to its lowest level in 11 years after economic reports depicted a deepening recession and lawmakers postponed a vote on a plan to salvage the auto industry.

The Standard & Poor's 500 Index extended its 2008 tumble to 49 %, poised for the worst annual decline in its 80-year history.
Chesapeake Energy Corp. and National-Oilwell Varco Inc. slid more than 21 % as crude sank to a three-year low as the economic slump crushes demand. JPMorgan Chase & Co. tumbled 18 % and Citigroup Inc. plunged 26 % as concern the recession will trigger more bankruptcies pushed the cost of insurance against corporate defaults to an all-time high.

The S&P 500 slid 6.7 % to 752.58, under the low of 776.76 reached during the bear market in 2002. The Dow Jones Industrial Average sank 443.8 points, or 5.6 %, to 7,553.48. The Nasdaq Composite decreased 5 % to 1,317.05.


JPY higher

JPY higher The yen touched a three-week high against the dollar and the euro as reports showing a surge in U.S. jobless claims and a drop in manufacturing prompted bets investors will sell higher-yielding assets. The Swiss franc fell to the lowest against the dollar since July 2007 after the central bank unexpectedly halved its target lending rate to 1 %.


Oil below USD 50

Crude oil fell below USD 50 a barrel in New York for the first time in almost two years as a recession in the U.S., Europe and Japan cut global energy demand.


Far East Time Zone:

BOJ kept rates unchanged, tweaks market operations

The Bank of Japan kept its key policy rate unchanged at 0.30 % on Friday, as it examines how last month's rate cut helped ease the pain from the global credit crisis.
Eyeing end-of-year pressures in financial markets, the central bank also said it would buy commercial paper more flexibly under repurchase agreements to aid corporate financing and would consider changes in fund operations that are collateralised with corporate debt.


Oil fell USD 1 to below USD 49 on more demand distress

Oil tumbled to a three-and-a-half year low below USD 49 a barrel on Friday, nearing a USD 100 drop from its July record high, as more distress for the global economy threatened to eat further into demand for fuels.

Asian stock markets dropped to a five-year low on Friday, tracking U.S. stocks that hit their lowest in a decade the previous session as the fate of the country's major car makers continued to hang in the balance.
U.S. light crude for January delivery fell USD 1.02 to USD 48.40 a barrel at 0209 GMT, its sixth straight session of falls and a 14 % drop for this week alone, heading for the largest weekly fall since early October. London Brent crude shed 68 cents to USD 47.40 a barrel.


Citigroup slid; eyes options including merger

Citigroup Inc lost more than one-quarter of its market value on growing worries over whether it has enough capital to withstand billions of dollars of potential losses and despite new support from its largest individual investor.
The second-largest U.S. bank by assets is looking at options now, including a sale of parts of the company or a merger with another firm, after its stock fell 50 % this week, a person familiar with the matter said on Thursday.
Discussions so far have been internal, and some options --such as entering into a merger where other executives end up running the company -- are unpalatable to managers at Citigroup, the person said. The bank's board of directors is set to meet on Friday, and Morgan Stanley MS.N is not considering a possible bid, the Wall Street Journal reported.
Citigroup did not comment on the report, repeating that it has a "very strong capital and liquidity position" and is focused on a strategy that will generate benefits "over time." Morgan Stanley did not immediately return a call for comment.


Asia stocks at 5-yr low; world economy buckles

Waves of selling in world stock markets crashed into Asia on Friday, with gains from the region's 5-year bull run now erased as a global recession tightened its grip, and investors sought refuge in government bonds and cash. U.S. stocks were at the lowest in more than a decade and oil prices fell to 3-1/2-year lows, trading below USD 50 a barrel, as commodity prices slumped on expectations of reduced demand as economies from the euro zone to Taiwan contract.

The fate of U.S. corporate titans like General Motors, Ford Motor Company and Citigroup was uncertain, adding to a general mood of anxiety. Citigroup, not long ago the world's most valuable financial firm, was reportedly considering selling itself.
Democratic congressional leaders demanded executives at the Big Three automakers come up with a detailed business survival plan in exchange for their support of up to USD 25 billion in loans.
Japan's Nikkei share average dropped 2.2 % up to lunch break, extending its weekly decline toaround and at 04.30 GMT it was up 1 %. around 12 %. After the break Nikkei turned around and at 04.30 GMT it was up 1 %.

Published on  Fri, Nov 21 2008, 06:02 GMT

15

0

U.S. Stocks dropped

Thu, Nov 20 2008, 07:07 GMT
by Jyske Bank Team

Jyske Bank


  • Oil fell

  • Nikkei dropped below 8.000

  • Australia Central Bank bought record AUD amount in October

 Today’s main events:

  • DEM: Producer Price Index

  • GBP: Retail Sales

  • USD: Initial Claims

  • USD: Philly Fed


American Time Zone:

U.S. Stocks dropped

U.S. stocks sank and benchmark indexes slid to their lowest levels since 2003 on growing concern over the health of the financial system and survival of the nation's car industry.

Citigroup Inc. slid 23 % to USD 6.40, a 13-year low, on a plan to buy USD 17.4 billion of troubled investment-fund assets. General Motors Corp. tumbled 9.7 % to its lowest price since the 1940s, while Ford Motor Co. lost 25 %. Fourteen companies in the Standard & Poor's 500 Index fell 20 % or more as government data signaled the recession is deepening.

The S&P 500 slipped 6.1 % to 806.58, extending its 2008 retreat to 45 %. The Dow Jones Industrial Average lost 427.47 points, or 5.1 %, to 7,997.28. The Nasdaq Composite Index decreased 6.5 % to 1,386.42. Twenty-eight stocks fell for each that rose on the New York Stock Exchange.


JPY rose as stocks continued lower

The yen advanced against the dollar and the euro as traders speculated a global drop in stocks will prompt investors to sell higheryielding assets and pay back low-cost loans in Japan's currency.

Japan's yen also gained against the Australian dollar and the high-yielders on bets the deepening global economic slump will discourage carry trades.


Oil fell after inventory figures

Crude oil futures fell after a U.S. Energy Department report showed that inventories climbed more than forecast as fuel demand dropped.


Far East Time Zone:

Japanese exports slide as global slowdown bites

Japan's exports logged their biggest annual decline in seven years in October, pushing the trade balance into deficit and reinforcing worries the global financial crisis may push the economy deeper into recession.

Exports to Asia fell for the first time since 2002 with sales to China also falling, a sign that fallout from the credit crisis has spread across Japan's key export destinations.

Exports fell 7.7 % in October from a year earlier, almost matching economists' median forecast for a 8.0 % drop to record their biggest decline since December 2001, finance ministry data showed. Imports rose 7.4 % from a year earlier.


Australia Central Bank bought record AUD amid Oct plunge

Australia's central bank intervened to buy a record amount of its currency in October as turmoil in global markets sent the Aussie tumbling to five-year lows, data out on Thursday showed.

Showing its commitment to keeping markets orderly in extraordinary times, the Reserve Bank of Australia (RBA) bought a net AUD 3.15 billion (USD 2.0 billion) in October. That was the largest amount ever bought in a single month and the first purchase since 2001.

At the time of the intervention it equalled almost 10 % of the central bank's entire official reserves, which then only totalled AUD 36 billion. Ironically, the slide in the local dollar has since boosted the value of the RBA's reserves to AUD 44.9 billion even after the intervention. Unlike many of its Asian neighbours, Australia has never favoured holding large forex reserves preferring to allow the currency to float freely and find its own level.

However, in October conditions became extreme as turmoil in global markets and fears of a world recession sent the local currency crashing by 25 % over the month to hit five-year lows near 60 U.S. cents.

The RBA has since intervened sporadically when the market has become disorderly. Last week it bought the local currency around USD 0.6350 after it dived around 6 U.S. cents in just a couple of days.


Oil fell below USD 53 on US stocks drop, demand dropped

Oil fell for a fifth straight session to below USD 53 on Thursday after U.S. crude inventories climbed twice as much as expected, signalling an economic downturn is hitting hard and demand for fuel is falling.

Oil also took its lead from equities, which fell in the United States and Europe to their lowest in 5- years after U.S. consumer prices dropped at a record pace in October and as prospects faded for a bailout of the U.S. car industry.

U.S. light crude for December delivery, due to expire later on Thursday, fell 68 cents or 1.3 % to USD 52.94 a barrel. Wednesday's USD 53.62 a barrel was the lowest settlement since Jan.
22, 2007. London Brent crude rose 48 cents to USD 52.20 at 0112 GMT.


Global stocks hit 5-½ yr lows, Asia routed

Investors are bracing for tough conditions ahead after the latest bearish signals for the global economy. The Federal Reserve slashed its U.S. growth forecasts, U.S. consumer prices fell at a record pace last month, and Japan's October exports fell by the most in seven years. The bleak outlook, which is hitting sectors from South Korean chip makers to U.S. auto makers, comes amid renewed worries about the global financial system.

Citigroup C.N shares tumbled to a 13-year low on Wednesday as investors questioned survival prospects. Like dominoes, Asian markets fell a day after U.S. stocks hit their lowest in more than five years. The MSCI All-Country World Index was down 0.7 % at 0200 GMT, having hit its lowest level since May 2003.

The rout was especially pronounced in Japan, where the Nikkei Average dropped 4.3 %, and below the key technical level of 8,000 points for the first time in three weeks. South Korean shares tumbled more than 4 % too, while markets from Sydney to Singapore and Taiwan fell between 1-3 % each.

Published on  Thu, Nov 20 2008, 07:07 GMT

13

0

U.S. stocks rose

Wed, Nov 19 2008, 07:01 GMT
by Jyske Bank Team

Jyske Bank


  • Oil fell

  • Nikkei fell on economy worries

  • Yen rose

Today’s main events:

  • GBP: BoE Minutes

  • USD: Consumer Price Index

  • USD: MBA Mortgage Applications

  • USD: FOMC minutes


American Time Zone:

U.S. stocks rose

U.S. stocks gained in the last hour of trading as a rally in energy and technology shares overpowered a drop in homebuilder confidence to the lowest level on record.

Hewlett-Packard Co. jumped 14 % as earnings topped analysts' estimates, while Exxon Mobil Corp. climbed more than 4 %. The advance in equities accelerated in the final 15 minutes of trading as investors tracking the Standard & Poor's 500 Index bought shares to replace Anheuser-Busch Cos., which was removed from the gauge after its takeover by InBev NV.

The Standard & Poor's 500 Index added 1 % to 859.11. The Dow Jones Industrial Average increased 151.17 points, or 1.8 %, to 8,424.75.
The Nasdaq Composite Index rose less than 0.1 % to 1,483.27. About six stocks retreated for every five that rose on the New York Stock Exchange.


JPY declined as stocks rose

The yen dropped against the euro and the dollar for the first time in three days as stock gains fueled speculation investors will be slower in selling higher- yielding assets funded by low-cost loans in Japan.


Oil fell

Crude oil fell to the lowest in almost 22 months on forecasts that a report will show U.S. oil supplies increased for an eighth week as a recession erodes global demand.


Far East Time Zone:

Nikkei fell 1.8 % on economy worries, stronger yen

Japan's Nikkei share average fell 1.8 % on Wednesday, hurt by fears of a global recession, while a stronger yen sparked selling in exporters such as Tokyo Electron Ltd.
The benchmark Nikkei slid 148.28 points to 8,180.13 by midday, while the broader Topix was down 1.6 % at 822.15.


Oil steady above USD 54, eyes on U.S. stocks data

Oil prices were little changed above USD 54 a barrel on Wednesday ahead of data expected to show U.S. crude stocks rose last week, another sign that the global economic slump is clipping fuel demand.
American banking and car maker woes reverberated around the globe and the International Monetary Fund said it would need extra funding to help countries through the downturn.

U.S. light crude for December delivery rose 11 cents to USD 54.50 a barrel by 0104 GMT after settling at the lowest level since January 29, 2007 in the previous session.


Sumitomo Mitsui FG to raise around USD 4 bln - report

Sumitomo Mitsui Financial Group Inc aims to raise about 400 billion yen (USD 4.12 billion) by issuing preferred securities, to finance the redemption of outstanding preferred securities and protect its capital adequacy from bad-loan costs, the Yomiuri newspaper reported on Wednesday.
Japan's third-largest banking group is set to announce the plan as early as on Wednesday, the report said.
The bank said in a statement it has not made such a decision to raise capital.
Sumitomo Mitsui said on Friday its July- September profit halved on ballooning bad-loan costs and losses on its stock portfolio, and stuck to its full-year forecast for a 61 % drop in profit.


Yen rose as global recession worries remain

The yen rose against the dollar and the euro on Wednesday, rebounding further from losses due to a late rally in Wall Street shares, as investors remained worried about a deepening global recession and returned to the safety of the Japanese currency.
Fears about the future of U.S. automakers also darkened investors' sentiment as top executives of General Motors, Ford and Chrysler warned Congress that their industry was teetering on the brink of disaster.
Robert Nardelli, head of Chrysler, saw potential systemic risk if his company went into bankruptcy or failed, he said in testimony at a U.S. Senate Banking Committee hearing.
The hearing came as Treasury Secretary Henry Paulson reiterated his opposition to diverting USD 25 billion from a USD 700 billion financial bailout programme to rescue Detroit.

Published on  Wed, Nov 19 2008, 07:01 GMT

16

0

U.S. Stocks fell

Tue, Nov 18 2008, 05:26 GMT
by Jyske Bank Team

Jyske Bank


  • JPY higher

  • Nikkei down

  • Japan: Hard to expect positive growth in ‘09

 Today’s main events:

  • GBP: Consumer Price Index

  • USD: Producer Price Index

  • USD: Capital Flow (TICS)


American Time Zone:

Stocks fell

U.S. stocks slid, extending a two-week drop, as a record contraction in New York manufacturing and Citigroup Inc.'s plan to cut 50,000 jobs spurred concern the recession will deepen.

Alcoa Inc., the largest U.S. aluminium producer, lost 11 % after UBS AG cut its recommendation on the shares and the Federal Reserve Bank of New York's general economic index slid to the lowest level since records began in 2001.
Citigroup slipped 6.6 % to its lowest price since May 1996. Hartford Financial Services Group Inc. tumbled 27 % after Barclays Plc said the insurer may face more “negative developments”.

The S&P 500 declined 2.6 % to 850.75 after swinging between gains and losses at least 18 times as energy shares climbed earlier in the day. The Dow Jones Industrial Average decreased 223.73, or 2.6 %, to 8,273.58. The Nasdaq Composite slid 2.3 % to 1,482.05. Three stocks fell for each three that rose on the New York Stock Exchange.


JPY higher as stocks decline

The yen rose for a second day against the dollar as a decline in global stocks led investors to sell higher-yielding assets to pay back lowcost loans funded in the Japanese currency.

Japan's yen also advanced against the SEK and NOK on speculation carry trades will unwind as central banks lower interest rates. The dollar fell against the euro as a contraction in New York State manufacturing added to evidence the world's largest economy has fallen into a recession.


Oil higher

Crude oil rose on speculation that U.S. heatingfuel consumption will increase as a cold weather system moves across the eastern U.S. and a tanker owned by Saudi Arabian Oil Co. was hijacked by pirates.


Far East Time Zone:

Nikkei down 1 % as econ worries hit exporters

Japan's Nikkei average slipped 1 % on Tuesday as concerns over the weakening global economy hurt exporters such as Sony Corp Mitsubishi UFJ Financial Group and other big banks were weaker on intensifying worries about the financial sector after Citigroup Inc on Monday revealed a drastic job cut plan in a move to restore the No. 2 U.S. bank.
The benchmark Nikkei was down 82.17 points at 8,440.41 at midday, while the broader Topix dipped 0.3 % to 848.26.


Japan EconMin: hard to expect positive growth in '09

Japanese Economics Minister Kaoru Yosano said on Tuesday it was hard to expect Japan's economy to log positive growth in the next fiscal year starting in April.
"I can hardly be confident that it (next year's growth rate) would be positive," Yosano told news conferences after a cabinet meeting.
Government data showed on Monday that Japan's economy slipped into recession with a 0.1 % contraction in the third quarter, marking the second straight quarter of contraction.


Australia central bank shows sense of urgency in easing

Australia's central bank saw an urgent need to cut interest rates earlier this month as an unprecedented fall in household wealth and turmoil on global markets threatened a severe economic downturn.

Minutes of the Reserve Bank of Australia's (RBA) November meeting showed escalating concerns about consumer and business sentiment, pointing to yet more easing ahead. "It shows the RBA is keen to move quickly to head off what is the greatest threat to the Australian economy in decades," said Rory Robertson, interest rate strategist at Macquarie. "That means a lot more cutting to come."

The November minutes showed the RBA initially favoured an easing of 50 basis points but within just a few days chose to cut by 75 basis points to 5.25 %. That brought the reduction since September to 2 full percentage points, the most drastic move since the recession of 1990/91.

Investors have already put their money on a similar outcome, with rate futures tipping a cut of at least 75 basis points in December and rates of 3.5 % by March.

Published on  Tue, Nov 18 2008, 05:26 GMT

17

0

U.S. equities fell on bad retail sales

Mon, Nov 17 2008, 07:20 GMT
by Jyske Bank Team

Jyske Bank


  • The yen rose

  • World crisis plan criticized

  • Oil price below USD 56 a barrel

Today’s main events:

  • NOK Trade Balance

  • EUR Trade Balance

  • USD FED’s Hoenig & Duke speaks

  • USD Industrial Production & Capacity Utilization


American Time Zone:

U.S. equities fell on bad retail sales

U.S. stocks fell, capping a second straight weekly loss, as a record drop in retail sales and weaker demand for mobile phones raised concern about the depth of the recession.
Sears Holdings Corp., Home Depot Inc. and Office Depot Inc sank more than 6 % on government data showing sales at retailers declined 2.8 % last month. Qualcomm Inc., the biggest maker of mobile-phone chips, and Motorola Inc. slid after Nokia Oyj predicted global shipments will shrink next year. The Standard & Poor's 500 Index pared yesterday's 6.9 % rally and extended its weekly tumble to more than 4 %.


The yen rose

The yen rose, heading for weekly gains against the euro and the dollar, as a record drop in U.S. retail sales prompted speculation investors will sell higher-yielding assets and pay back lowcost loans in Japan's currency.


Oil lower

Crude oil fell more than USD 1 a barrel, and gasoline tumbled, as the global economic slowdown cut demand in the largest energyconsuming countries.


Far East Time Zone:

World crisis plan criticized

A package of economic rescue measures agreed by the world's major governments appeared to fall short of calming investors jangled nerves as the trading week dawned in Asia.

In early trading on Monday, the yen and U.S. dollar rose in a flight to safety on assessments that the meeting yielded no concrete moves to avert a looming global recession.

Governments from Washington to Beijing agreed Saturday to a host of fiscal and monetary steps to rescue the global economy but it was left to individual governments to tailor their response to their particular circumstances and troubled industries.

In the United States, the lame-duck status of President George W. Bush's administration made guessing the likely ability of the Group of 20 economic summit to restore market confidence tougher.

President-elect Barack Obama sent emissaries to the weekend event, and issued a statement in support of a coordinated response to the global financial crisis.

The post-meeting statement from the grouping of major industrialized and developing countries contained a kitchen sink of reform pledges aimed at soothing volatile markets and calming consumers' worries.

It said that all financial markets, products and participants will be subject to supervision, vowed tougher accounting rules, a review of compensation practices and greater cooperation between national regulators.
Even the long-running Doha round of free-trade talks was given a new lease on life.

Finance ministers were told to develop specific plans for implementing the recommendations.
The first set of actions is to be completed by the end of March, and a follow-up meeting will be held by the end of April.


Crisis sends Japan into first recession in 7 years

Japan slid into its first recession in seven years in the third quarter as the financial crisis curbed demand for Japanese exports, with the economy minister and analysts offering a bleak outlook for the economy.

The 0.1 % contraction in July-September GDP confirmed the global financial crisis has sabotaged growth in yet another major economy, with the euro zone already in recession, using the most common definition of two consecutive quarters of contraction.

The recessions underscore the task facing world leaders, who backed on Saturday a rapid action plan for the global economic crisis, but failed to impress markets seeking a more immediate fix.

"The downtrend in the economy will continue," Japanese Economy Minister Kaoru Yosano told a news conference.

The government revised the second-quarter contraction to a larger 0.9 % slide, the biggest quarterly drop for Japan's economy in seven years, and some economists warned that gross domestic product (GDP) could keep contracting for a further two quarters.

The yen dipped after the data, but a global flight to low-risk currencies meant the fall was shortlived.
USD/JPY traded between 95.87 and 97.12.


Oil price below USD 56 a barrel

Oil fell over USD 1 to below USD 56 a barrel on Monday, dropping to near its lowest in almost two years after a meeting of the Group of 20 major economies ended with few actual proposals on how they would combat a global recession.

News that the Organization of the Petroleum Exporting Countries (OPEC) may wait until its meeting on Dec. 17, instead of the end of November, to make a decision on whether to cut production targets again, also weighed on prices.

U.S. light crude for December delivery fell USD 1.28 to USD 55.76 a barrel by 0109 GMT, after having fallen earlier to USD 55.60, just off the USD 54.67 a barrel low it hit on Thursday, it’s weakest since January 2007.

London Brent crude fell 85 cents to USD 53.39.

Published on  Mon, Nov 17 2008, 07:20 GMT

17

0

U.S. stocks rose

Fri, Nov 14 2008, 05:56 GMT
by Jyske Bank Team

Jyske Bank


  • Oil higher

  • Asian Shares rally

  • Gold Rush

Today’s main events:

  • DEM: Consumer Price Index

  • EUR: Consumer Price Index

  • USD: Import & Export Prices

  • Retail Sales


American Time Zone:

U.S. stocks rose

U.S. stocks gained for the first time this week as investors snapped up energy shares trading at their cheapest valuations on record, overshadowing a jump in jobless claims and a worsening outlook for technology companies.
Exxon Mobil Corp. and Chevron Corp. led gains in all 40 energy producers in the Standard & Poor's 500 Index as oil rebounded from a 21- month low. CB Richard Ellis Inc., the world's largest provider of commercial real estate services, advanced 45 % after raising money in a share sale. Dell Inc., the second-biggest maker of personal computers, lost 7 % as it was added to Goldman Sachs Group Inc.'s “conviction sell” list on concern that demand is slowing.


JPY sharply lower as stocks rally

The yen fell sharply from two-week highs against the dollar and the euro as stocks went from -3% to finish with a 7% gain and after the Reserve Bank of Australia intervened to support its currency, fueling speculation other central banks may follow suit. GBP continued to fall dropping to 0.8675 against EUR.


Oil higher after inventory figures

Crude oil rose after a U.S. government report showed a smaller-than-expected supply increase and refiners cut operating rates.


Far East Time Zone:

Asia shares rally, but caution ahead of G20

Asian shares rallied and oil held on to gains on Friday as this week's sharp losses were seen as excessive even as signals continued to flash 'danger' for the global economy ahead of a G20 meeting this weekend.

Some regional bonds fell but, in a sign of the caution gripping markets, the yen recovered from Thursday's sharp fall to edge up against the dollar and the euro as investors tiptoed back to the perceived safety of the Japanese currency.

Japan's Nikkei average led gains in the region with a 4.3 % advance. Hong Kong's key index rallied 3.5 %, markets in Australia and Singapore gained around 2 % each, with South Korea, Taiwan and Shanghai notching gains of over 1 %.


China capital spending slows as economy softens

China's capital spending was slightly lower than expected in October, consistent with weakness seen in a batch of data this week as the world's fourth-largest economy battles to avoid too sharp a slowdown.

Investment in urban areas in fixed assets such as roads and factories rose 27.2 % in the first 10 months of the year, down from 27.6 % in the first three quarters, the National Bureau of Statistics said on Friday.

Public works will receive a boost from the government's new 4 trillion yuan (USD 586 billion) stimulus plan, but the jury is out on whether it will be enough to fill the gap left by a downturn in the property market and factory production, which together account for more than half of capital investment.


Oil extends gains above USD 58 on shares rally

Oil extended gains above USD 58 on Friday after climbing almost 4 % the previous day, as a recovery in equity markets countered increasing signs of a global recession and slowing demand.
Expectations that OPEC would cut output again late this month also lent support, but some analysts said it was premature to conclude that the market had hit a bottom, pointing to high U.S. oil stockpiles and slowing world oil demand growth.


Gold rush

The mainland is seriously considering a plan to diversify more of its massive foreign-exchange reserves into gold, a person familiar with the situation told The Standard.

Beijing is considering changing its asset allocations during the financial tsunami in order to build up gold reserves "in a big way," the source said.

China's fears about the long-term viability of parking most of its reserves in US government bonds were triggered by Treasury Secretary Henry Paulson's US USD 700 billion (HK USD 5.46 trillion) bailout plan, which may make the US budget deficit balloon to well over US USD 1 trillion this fiscal year.
The United States holds 8,133.5 tonnes of gold reserves valued at US USD 188.23 billion. China holds gold reserves of just 600 tonnes, worth only US USD 13.89 billion.

Beijing's reserves could easily go up to 3,000 to 4,000 tonnes, Tanrich Futures senior vice president Colleen Chow Yin-shan said.

Published on  Fri, Nov 14 2008, 05:56 GMT

12

0

U.S. Stocks fell

Thu, Nov 13 2008, 05:35 GMT
by Jyske Bank Team

Jyske Bank


  • GBP Fell to record low

  • Oil fell to 21 month low

  • Japan may provide IMF USD 106 bln

  • Asian shares sank

Today’s main events:

  • DEM: GDP

  • USD: Initial Claims

  • USD: International Trade


American Time Zone:

U.S. stocks fell

U.S. stocks fell for a third day as Best Buy Co.'s warning of a “seismic”' slowdown in spending and the Treasury's plan to use bailout funds to bolster consumer credit stoked concern the economic slump is deepening.
Best Buy, the largest electronics retailer, lost 8 % after saying profit will decrease in “the most difficult climate we've ever seen”. Occidental Petroleum Corp. dropped 11 % as crude sank below USD 57 a barrel, while American Express Co. tumbled 10 % on a report the company may need government aid. The Standard & Poor's 500 Financials Index slid to a 12-year low as the Treasury scrapped plans to buy mortgage assets and shifted focus to consumer credit.


GBP fell to record low

The pound dropped to a record low against the euro and breached USD 1.50 for the first time since 2002 after the Bank of England indicated it will keep reducing interest rates as the economy slumps.
The pound also fell versus the Japanese yen and Swiss franc after the central bank said the economy will shrink through most of next year and inflation will slow “well below” the 2 % target.


Oil fell to 21 month low

Crude oil fell to a 21-month low on speculation that the International Energy Agency will cut its global demand estimate tomorrow and the U.S. will report that stock piles gained.


Far East Time Zone:

China Oct industrial output slows to 8.2 %

Chinese annual industrial output slumped to 8.2 % in October, the weakest reading since late 2001, as manufacturers struggled with a drop in export demand and weakness in the domestic property market. Officials said the abrupt downturn, concentrated in steel and other heavy industries, prompted the government to rush out Sunday's 4 trillion yuan fiscal stimulus package, which was accompanied by a shift to a moderately easy monetary policy.


Asian shares sink on global economy fears

Asian shares sank on Thursday to their lowest this month on uncertainty about whether the United States can succeed in its massive banking rescue and a revenue warning from Intel Corp.

The Japanese yen retreated against the euro and the dollar after soaring on Wednesday on a flight-to-quality. Other Asian currencies fell, while Australia's central bank stepped in to support its tumbling Australian dollar.
The MSCI index of Asian stocks outside Japan fell more than 4.5 % to its lowest level since Oct. 30. Japan's Nikkei average dropped 5 %, with exporters such as Honda Motor hit amid concerns about the impact from a stronger yen. Other stock markets were also battered: South Korea, Australia, Hong Kong and Taiwan tumbled more than 4 % each, and Shanghai fell about 1 %.


Japan may provide IMF USD 106 bln, deflation looms

Japan is ready to offer USD 106 billion to the International Monetary Fund if it needs extra funds to help emerging economies, a Japanese government source said on Thursday, as a central bank board member warned the financial crisis has a long way to run.

Deflation rather than inflation is becoming an increasing concern across the globe, with Japanese wholesale inflation slowing sharply in October and analysts warning of weakening demand for goods as the crisis pushes developed economies towards recession.
Prime Minister Taro Aso will propose offering IMF the fund when leaders of the Group of 20 industrialised and emerging nations meet for a crisis summit in Washington on Friday, the government source told Reuters.

Published on  Thu, Nov 13 2008, 05:35 GMT

10

0

U.S. stocks dropped

Wed, Nov 12 2008, 06:07 GMT
by Jyske Bank Team

Jyske Bank


  • Oil below USD 59

  • China retail sales up 22 %

  • Aussie off lows, but seen shaky on economy worries

Today’s main events:

  • EUR: Industrial Production

  • GBP: Unemployment Rate & Inflation Report

  • USD: MBA Mortgage Applications


American Time Zone:

U.S. stocks dropped

U.S. stocks dropped for a second day as a deteriorating outlook for American industry and oil's drop below USD 60 a barrel signaled the economic slump may deepen.
General Motors Corp. tumbled to the lowest price since 1942 as the automaker crept closer to bankruptcy, while Tyco International Ltd., the world's largest maker of security systems, sank on a profit forecast that trailed analysts' estimates. Hartford Financial Services Group Inc. slid 24 % after Goldman Sachs Group Inc. said investment losses may force insurers to raise more capital and threaten credit ratings. Exxon Mobil Corp. decreased as much as 3.3 % as crude declined on speculation demand will slow.


JPY higher as stocks drop

The yen rose against the euro for the first time in three days and gained versus the dollar on bets a drop in stocks will reduce purchases of higher-yielding assets funded by low-cost loans in Japan's currency.
The pound dropped to a record against the euro as U.K. home sales declined to the lowest in at least three decades. The ruble fell the most in two months versus the dollar-euro basket after the central bank said it may let Russia's currency weaken.


Oil at 19 month low

Crude oil fell below USD 59 a barrel in New York for the first time since March 2007, and gasoline tumbled, on speculation the International Energy Agency will cut its 2009 oil-demand forecast because of slowing economic growth.


Far East Time Zone:

China Oct retail sales up 22.0 %, slow slightly

China's annual retail sales growth slowed to 22.0 % in October from 23.2 % in September, apparently holding up well despite deepening worries about the fallout of the global financial crisis.
However, a breakdown of the data showed an across-the-board deterioration, raising questions about the long-established trend of robust consumption, which has been supported by higher incomes and government policies to tilt growth away from investment and exports.


Oil down below USD 59 as demand fears rise

U.S. crude futures slipped further on Wednesday, after settling below USD 60 for the first time in 20 months the previous day, as fears of the spreading economic downturn deepened demand worries and pushed down prices.

NYMEX crude for December delivery was trading down 70 cents at USD 58.63 a barrel in Globex electronic trading by 0022 GMT, after settling down USD 3.08 at USD 59.33 on Tuesday.


Aussie off lows, but seen shaky on economy worries

The Australian dollar egded up from two-week lows on Wedensday as a bounce in consumer sentiment helped offset lingering risk aversion amid mounting worries about a global recession.
The Westpac-Melbourne Institute consumer sentiment index bounced 4.3 %, or 3.5 points, to 85.5 in November. That recouped part of October's steep 11 % dive and still left the index down 22.6 % on November last year. Australia third-quarter wage price index rose 0.9 % quarter-on-quarter, slightly lower than market expectations of a 1.0 % rise. For the year the index was up 4.1 %, slightly lower than market forecasts of a 4.2 % rise.

Published on  Wed, Nov 12 2008, 06:07 GMT

10

0

U.S. stocks dropped

Tue, Nov 11 2008, 06:01 GMT
by Jyske Bank Team

Jyske Bank


  • JPY higher

  • Asian stocks fell

  • Signs of China slowdown

Today’s main events:

  • SEK: Consumer Price Index

  • GBP: Trade Balance

  • DEM: ZEW indicator


American Time Zone:

Stocks dropped

U.S. stocks dropped as a worsening outlook for companies from Goldman Sachs Group Inc. to Google Inc. overshadowed China's USD 586 billion stimulus plan and pledges by the world's biggest nations to bolster economic growth. Goldman fell as much as 12 % after Barclays PLC said the stock-market rout may drag the firm to its first quarterly loss since going public. General Motors Corp., which last week said it may run out of cash, lost a quarter of its value after Deutsche Bank AG said the automaker's shares may go to zero. Google Inc., the biggest seller of online ads, sank 6 percent on concern fourth-quarter revenue growth will stall.


JPY higher as stocks drop

The yen rose against the dollar on speculation a drop in stocks will lead investors to sell higheryielding assets and pay back low-cost loans in Japan, unwinding the carry trade.
Japan's currency erased its decline versus the dollar and pared its slide against the euro as U.S. stocks reversed their rally.


Oil rose on Chinese stimulus plan

Crude oil rose, rebounding from a 19-month low, as China announced a USD 586 billion stimulus plan and amid pledges by the world's biggest nations to bolster growth.


Far East Time Zone:

Signs of China slowdown feed into recession fears

Evidence of a weakening Chinese economy and feeble data from Australia and Britain reinforced fears of a prolonged global recession on Tuesday, as policymakers groped for a coordinated response to the downturn.

China's inflation fell to a 17-month low of 4 % in October, while trade figures were expected to show slowing imports, both serving as signs of a cooling economy and dampening hopes that China's growth will help cushion the impact of the global downturn.

"It shows the Chinese economy is in a sharp slowdown -- production is falling, so is demand," said Zhang Yongjun, an economist with a government think-tank in Beijing, after the inflation data.


Japan exports fall 9.9 % in first 20 days of October

Japan's exports in the first 20 days of October fell 9.9 % from a year earlier, putting the trade balance into the red during the period, Ministry of Finance data showed on Tuesday.
Japan's trade surplus has all but evaporated in the past couple of months, as high prices of oil and other raw materials boosted the value of imports, while exports languished as the global economy teetered on the brink of recession.


Asian stocks fell

Asian stock markets and commodities retreated on Tuesday while the yen pushed higher as a souring economic outlook took some of the wind out of investor hopes sparked by China's massive stimulus plan.

Stocks pulled back after shares of General Motors sank to a 62-year low and brokerages forecast that Goldman Sachs will post its firstever quarterly loss, stirring worries about the earnings damage to come as the global economy faces a recession.
Japan's Nikkei average was down 3.3 % at the noon break, after having jumped nearly 6 % the previous day.

Published on  Tue, Nov 11 2008, 06:01 GMT

20

0

USD dropped against EUR

Mon, Nov 10 2008, 13:14 GMT
by Jyske Bank Team

Jyske Bank


  • Oil Higher

  • China moves to boost economy

  • Japan machinery orders post biggest fall in decade

Today’s main events:

  • GBP: Producer Price Index

  • NOK: Consumer Price Index

  • EUR: Trichet speaks

  • GBP: RICS


American Time Zone:

USD fell after unemployment report

The dollar dropped for the first time in three days against the euro as the U.S. unemployment rate climbed to the highest level since 1994, indicating the financial crisis is taking a sustained toll.
The yen fell against the euro and the dollar, as a rally in global stocks on the prospect of further interest-rate cuts by the Federal Reserve encouraged investors to buy higher-yielding assets financed by low-cost loans in Japan.


Oil higher

Crude oil rose as speculation that the Federal Reserve will lower interest rates outweighed a report of the highest U.S. unemployment rate in more than a decade.


Far East Time Zone:

China moves to boost economy

China launched a huge stimulus plan on Sunday worth nearly USD 600 billion, kicking off what could be a round of big spending or interest rate cuts by leading economies to stave off a recession in many countries.
China's official Xinhua news agency said the world's fourth-largest economy approved 4 trillion yuan (USD 586 billion) in new government spending between now and 2010, focused largely on infrastructure and social projects.
The move was hailed by the head of the International Monetary Fund, Dominique Strauss-Kahn, who said it would have a positive effect on the world economy.
China's cabinet also announced a shift to a "moderately easy" monetary policy, suggesting more rate cuts.


Stimulus plan boosts stocks, commodities

Asian stocks and commodity prices climbed on Monday after China unveiled a nearly USD 600 billion economic stimulus plan, one of many measures countries are undertaking to limit the economic fallout from the financial crisis.

Japanese government bonds and U.S. Treasuries retreated as funds flowed back into riskier assets on hopes for stimulus measures by other major economies, with U.S. President-elect Barack Obama pushing for urgent passage of more fiscal spending in the world's largest economy.

Japan's Nikkei share average rose 5.5 % in early trade, getting a boost from the gains on Wall Street late last week on some bargain hunting among investors.

London-traded copper futures jumped nearly 7 % to USD 4,015, while zinc and lead were up 5 %. U.S. crude oil prices rose USD 2.86 a barrel to USD 63.90, rebounding after sliding on Friday to a 1-1/2-year low below USD 60.

   

Japan machinery orders post biggest fall in decade

Japan's core machinery orders suffered their biggest quarterly fall in a decade and manufacturers saw a weak rebound as companies brace for global recession by cutting capital investment.
Core orders, which excludes those for ships and machinery at electric power firms, fell 10.4 % in July-September from the preceding three months, matching a record low in April-June 1998, government data showed.
A 5.5 % rise in core orders, seen as a leading indicator of capital spending, in September was not enough to offset falls in the previous two months.

Published on  Mon, Nov 10 2008, 13:14 GMT

22

0

Euro fell after rate cut

Fri, Nov 7 2008, 05:33 GMT
by Jyske Bank Team

Jyske Bank


  • Oil at 19 month low

  • Asian stocks fell for a third day

  • FED’s Warsh: US economic growth looks weak in Q4

Today’s main events:

  • DEM: Trade Balance

  • DEM: Industrial Production

  • USD: Non Farm Payrolls

  • USD: Pending Home Sales


American Time Zone:

U.S. Stocks

U.S. stocks slid and the Dow Jones Industrial Average posted its worst two-day loss since 1987 after jobless claims jumped and the shrinking economy decimated earnings at companies from Blackstone Group Inc. to News Corp.

Exxon Mobil Corp. dropped 4.3 %, leading energy companies to the biggest declines in the Standard & Poor's 500 Index, as oil slid to a 19-month low below USD 61 a barrel. News Corp. sank 16 % after the media company controlled by Rupert Murdoch said ad sales decreased. Blackstone, the world's largest private-equity firm, lost 9.5 % after posting the biggest quarterly loss in its 18 months as a public company.


Euro fell after rate cut

The euro fell against the dollar, yen and pound after European Central Bank President Jean-Claude Trichet said the economy “weakened significantly” and the International Monetary Fund cut growth forecasts for the region.

The 15-nation currency dropped the most in almost two weeks versus the dollar as the ECB reduced its main refinancing rate by a half-percentage point to 3.25 % and Trichet said more reductions may follow. The Bank of England unexpectedly lowered its key rate by 1.5 percentage point to 3 %, and Switzerland cut its target to 2 %.


Oil at 19 month low

Crude oil fell to a 19 month low on signs that fuel demand will contract as the global economy slows.


Far East Time Zone:

Asian stocks fell for a third day

Asian stocks fell for a third straight day and oil prices slipped to a 1-1/2-year low below USD 60 a barrel on Friday in the face of a rapidly slowing global economy, though aggressive policy changes brought markets back from freefall.

Still, no industry was considered a safe bet and investors found few havens except for the yen and some government bonds, with the financial crisis expected to see the world's developed economies headed for the first full-year contraction since World War II.

Toyota Motor Corp saw its stock slump 12 % after the world's top car maker cut in half its net profit forecast for fiscal year 2008 because of dwindling demand.

At one point Nikkei was down more than 6 %, but regained most losses after the lunch break. At 4.30 GMT Nikkei was down 0.8%.


FED’s Warsh: US economic growth looks weak in Q4

The U.S. economy looks poised for a weak fourth quarter, and economic recovery depends on rebuilding the financial system rather than a rebound in ravaged housing markets, Federal Reserve Governor Kevin Warsh said on Thursday.

"Prospects for robust economic growth over the intermediate term are likely to be determined, not principally by the trajectory of housing prices, but by the speed with which a new financial architecture emerges," he said in remarks prepared for delivery to an audience at New York University.

Recent data suggest the fourth quarter will be soft after a contraction in the third quarter, Warsh said, adding that the depth and duration of the spell of weak growth remain "highly uncertain."

The U.S. central bank last week cut interest rates by a half-percentage point to 1 % to help support the flagging economy, which contracted at a 0.3 % annual rate in the July-September period.

Amid the turbulence in financial markets, Warsh said, the central bank wants to ensure that credit was available to the broader economy outside the financial sector.
Emergency liquidity support from the Fed and capital injections by the Treasury have been necessary to protect the economy from the effects of financial turmoil, he said.

He noted, in a question-and-answer session later, that recent trends in the credit markets have been encouraging but that the improvements were as yet tentative. The shape of the repaired financial system itself may need to be clearer to market participants before confidence and economic growth are fully restored, he said.

Published on  Fri, Nov 7 2008, 05:33 GMT

20

0

USD fell and JPY rose in New York

Thu, Nov 6 2008, 05:48 GMT
by Jyske Bank Team

Jyske Bank


  • Asian stocks sharply down

  • Australian Employment Jumps

  • Euro and Sterling fell on rate cut expectations

Today’s main events:

  • EUR: ECB Interest Rate Decision

  • GBP: BoE Interest Rate Decision

  • DEM: Factory Orders


American Time Zone:

U.S. Stocks

U.S. stocks fell as reports showing the most private-sector job losses in six years and a slump in service industries spurred concern the economy will worsen even as President-elect Barack Obama takes steps to stimulate growth.

Nucor Corp., the largest U.S.-based steel producer, slid 7 % after larger rival ArcelorMittal doubled production cuts amid slowing demand.
Boeing Co., the world's second-largest commercial plane maker, lost 5.8 % after UBS AG forecast a 3 % drop in global air traffic next year.

The Dow Jones Industrial Average and Standard & Poor's 500 Index posted their worst drops on the day after a presidential election since 1948.


USD fell and JPY rose

The dollar fell against the yen as a contraction in U.S. services industries increased speculation that the Federal Reserve will cut the target lending rate by a half-percentage point next month.

The yen rose against the euro as a drop in stocks encouraged investors to close carry trade positions.


Oil lower

Crude oil fell more than USD 5 a barrel after an Energy Department report showed an unexpected increase in gasoline inventories.


Far East Time Zone:

Asian stocks sharply down

Asian stocks fell sharply and the yen rose on Thursday as more evidence that the U.S. economy is shrinking made investors brace for a potentially deep and lasting global recession.
After toying for several days with raising their threshold for risk by buying beaten-down shares, investors were overwhelmed by fears that a sharp slowdown in developed economies will have far-reaching consequences for the rest of the world.

Wall Street investment bank Goldman Sachs Group Inc, reportedly cut 3,200 employees this week, and the Bank of England and the European Central Bank were expected to cut interest rates aggressively to shore up their economies.

Japan's Nikkei share average slumped 5.7 %, led by high-profile exporters like Canon Inc and Honda Motor that are expected to be affected the most by a steep drop in overseas demand as consumers cut back spending.


Australian employment jumps

Australian employment showed a surprising jump in October as firms took on thousands of part-time workers, adding a glimmer of promise to an otherwise grim economic picture.

The government reported 34,300 net new jobs in October, confounding market forecasts of a 10,000 drop and bringing gains in the past year to a healthy 225,000.

Part-time employment surged 43,500, while full-time positions dropped 9,200. The jobless rate held at 4.3 %, when analysts had expected it to tick up to 4.4 %.

The darkening global outlook forced the Australian government this week to raise its forecasts for unemployment in the next couple of years. It now sees the jobless rate rising to 5.0 by mid-2009 and to 5.75 % by mid-2010.

Investors seemed to think much the same and the Australian dollar managed only a brief bounce on the jobs data before slipping back to USD 0.6683.


Euro and Sterling fell on rate cut expectations

The euro and sterling fell against the dollar on Thursday, pressured by expectations that the European central bank and the Bank of England will cut interest rates to prevent their economies from deteriorating further.

The yen firmed against higher-yielding currencies as fears of a global recession prompted investors to unwind risky carry trades, in which investors use the low-yielding Japanese yen to fund purchases of assets offering higher returns elsewhere.

Wednesday's data showed the euro zone service sector slumping to a fresh decade low, adding to the view that the ECB will cut interest rates by 50 basis points from the current 3.75 % level.

Investors also anticipate the BoE will cut interest rates -- now at 4.5 % -- by at least half a percentage point.

Such move would come after the ECB and BoE cut interest rates by 50 basis points last month in a coordinated move.

The euro fell 0.9 % from late U.S. trade to USD 1.2838. The European single currency dipped 1.2 % versus the yen to 125.37 yen.

Sterling slid 0.7 % to USD 1.5780. The dollar was little changed at 97.91 yen.

Published on  Thu, Nov 6 2008, 05:48 GMT

16

1

Barack Obama elected president

Wed, Nov 5 2008, 05:40 GMT
by Jyske Bank Team

Jyske Bank


  • USD sharply lower

  • Oil rose as USD drop

  • Australia’s government slash forecasts

  • EUR/USD fell after Stark comments

Today’s main events:

  • GBP: Industrial Production

  • EUR: Retail Sales

  • USD: ADP Employment Change

  • USD: ISM Non-Manufacturing


American Time Zone:

U.S. Stocks

U.S. stocks advanced in the biggest presidential Election Day rally in 24 years, led by energy and banking shares, on rebounding commodity prices and speculation the Treasury will bail out more financial companies.

General Electric Co. added 7.1 % and CIT Group Inc.and Principal Financial Group Inc. climbed more than 16 % after people briefed on the matter said the government may broaden the focus of its rescue program. Exxon Mobil Corp. and Chevron Corp. led all 40 energy shares in the Standard & Poor's 500 Index higher as oil gained. Archer Daniels Midland Co. rose as much as 22 % after profit more than doubled at the world's largest grain processor.


USD sharply lower

The dollar fell the most against the euro since the 15-nation currency's 1999 debut as the thaw in money markets reduced demand for the safety of U.S. assets. Obama led a Democratic electoral landslide that also expanded the party's majorities in both chambers of Congress and firmly repudiated eight years of Republican President George W. Bush's leadership.


Oil rose as USD drop

Crude oil rose more than USD 7 a barrel as the dollar dropped against the euro, increasing the appeal of commodities, and as global stock indexes advanced.


Far East Time Zone:

Barack Obama elected president

Democrat Barack Obama captured the White House on Tuesday after an extraordinary two-year campaign, defeating Republican John McCain to make history as the first black to be elected U.S. president.

Obama will be sworn in as the 44th U.S. president on Jan. 20, 2009, television networks said. He will face a crush of immediate challenges, from tackling an economic crisis to ending the war in Iraq and striking a compromise on overhauling the health care system.

McCain saw his hopes for victory evaporate with losses in a string of key battleground states led by Ohio, the state that narrowly clinched President George W. Bush's re-election in 2004, and Virginia, a state that had not backed a Democrat since 1964.

Obama led a Democratic electoral landslide that also expanded the party's majorities in both chambers of Congress and firmly repudiated eight years of Republican President George W. Bush's leadership.


Australia’s government slash forecast

Australia's government on Wednesday was forced to slash forecasts for economic growth and much vaunted budget surpluses, as it bowed the grim reality of a looming world recession.

Saying the global financial crisis had blown a AUD 40 billion (USD 28 billion) hole in expected tax revenues, Treasurer Wayne Swan warned of tough times and hard choices ahead.

"If international conditions were to deteriorate further then there could be more to come," Swan told reporters in his mid-year budget review. "This is yet another dramatic reminder that we are not immune to the impact of the global financial crisis."

The Labor government sliced its projected budget surplus for the year to June 2009 to just AUD 5.4 billion, down from AUD 21.7 billion forecasted in its May budget. The 2009/10 surplus was seen at only AUD 3.6 billion, down from AUD 19.7 billion.

Likewise, economic growth was projected at 2.0 % in 2008/09, down from 2.75 % previously, while unemployment was seen rising to 5.75 % by mid-2010 from a currently low 4.3 %.


EUR/USD fell after Stark comments

The euro fell against the dollar after European Central Bank member Juergen Stark said policy makers are ready to use interest-rate policy to bolster the region's shrinking economy.

The 15-nation currency also declined versus the yen as Stark's comments, cited by the Financial Times Deutschland in an interview, bolstered expectations the ECB will lower its 3.75 % benchmark rate at a meeting tomorrow.

EUR/USD fell to a low of 1.2830 from 1.3048 hit in New York trading.

Published on  Wed, Nov 5 2008, 05:40 GMT

12

0

Australia cuts rates by 75 bp to 5.25 %

Tue, Nov 4 2008, 06:05 GMT
by Jyske Bank Team

Jyske Bank


  • Nikkei up 4.8 %

  • U.S. Stocks rose

  • Oil lower as U.S. manufacturing drops

Today’s main events:

  • CHF: Consumer Price Index

  • EUR: Producer Price Index

  • USD: Factory Orders

  • USD: Presidential Election


American Time Zone:

U.S. Stocks rose

U.S. stocks rose and the Dow Jones Industrial Average climbed for a third day, its longest winning streak since August, as borrowing costs fell and analysts said telephone companies will weather an economic slump.

AT&T Inc. and Verizon Communications Inc. jumped more than 4.1 % after Wachovia Corp. said their valuations are “compelling” and the stocks are a “safe haven” as the economy contracts. Hartford Financial Services Group Inc. rallied as much as 60 % on the insurer's statement that it has enough capital to withstand further market declines. Walt Disney Co. fell 3.7 % after Merrill Lynch & Co. said the slowing economy would hurt theme park and television income.


JPY declined against USD

The yen fell against the dollar on speculation a drop in interbank borrowing costs will encourage investors to step up purchases of higher-yielding assets financed by low-cost loans in Japan's currency.


Oil lower as U.S. manufacturing drops

Crude oil fell more than USD 3 a barrel after a report showed that manufacturing in the U.S. contracted in October at the fastest pace in 26 years, a signal that fuel consumption will decline.


Far East Time Zone:

Australia cuts rates by 75 bp to 5.25 %

Australia's central bank cut its benchmark cash rate by a larger-than-expected 75 basis points to 5.25 % on Tuesday, seeking to save the economy from the recession engulfing much of the rest of the developed world.

In a brief statement following its monthly policy meeting, the Reserve Bank of Australia said it looked like demand and activity would be weaker than previously expected, leading the market to price in the chance of a further cut in December.


Nikkei up 4.8%

Japan's Nikkei was up 4.8 % on Tuesday, as exporters gained on the yen's recent weakness, though other markets were down after reports pointed to a shrivelling U.S. economy ahead of the presidential election.


EUR slipped against USD and JPY

The euro slipped against the dollar and the yen as the European Central Bank is seen cutting interest rates by half a percentage point to 3.25 % from the current 3.75 % on Thursday in an attempt to help the flailing economy.

EURUSD fell as low as 1.2527 and EURJPY was down 1.6 % at 1.2343. USDJPY traded between 98.35 and 99.36.

Published on  Tue, Nov 4 2008, 06:05 GMT

11

0

JPY and USD rose in New York trading

Mon, Nov 3 2008, 05:57 GMT
by Jyske Bank Team

Jyske Bank


  • UK’s Brown seeks Saudi IMF cash

  • USD weaker in Far East

  • Japanese markets closed due to public holiday

Today’s main events:

  • SEK: Purchasing Managers Index

  • EUR: Purchasing Managers Index

  • GBP: Purchasing Managers Index

  • EUR: European Commision’s Growth Forecasts

  • USD: ISM Manufacturing


American Time Zone:

U.S. Stocks

U.S. stocks rose, heading for the biggest weekly gain since 1974, after JPMorgan Chase & Co. took steps to end the housing crisis, bank lending rates declined and earnings from companies outside the financial industry expanded four times faster than the previous quarter.

JPMorgan gained 6.3 % after saying it will modify terms on USD 110 billion of mortgages and delay foreclosures. Morgan Stanley climbed more than 12 % after the cost of borrowing dollars for three months fell. Wynn Resorts Ltd., the biggest U.S. casino company, soared 21 % after increased gambling in Macau boosted profit.


JPY and USD rose

The yen and the dollar rose against the euro and headed for record monthly gains as signs of a global recession led investors to seek safety.

The euro also weakened as inflation in the 15 nations that share the currency slowed to the lowest since January, making room for the European Central Bank to lower borrowing costs.


Oil rose as winter nears

Crude oil rose, following heating fuels higher, on forecasts for lower temperatures in the Midwest next week.


Far East Time Zone:

UK’s Brown seeks Saudi IMF cash

British Prime Minister Gordon Brown said on Sunday he expected Saudi Arabia to pump money into the International Monetary Fund, the latest salvo in an ongoing effort to contain the global financial crisis that is also expected to bring a new round of rate cuts this week.

Governments have cut interest rates, propped up banks and stepped up state spending to try to spur their economies, but some countries have been forced to turn to the International Monetary Fund (IMF) and other global lenders for help.

Brown toured the Gulf ahead of an event-packed week that could see Britain, the euro zone and Australia join a global easing cycle by cutting interest rates and which will be capped by a meeting of the finance chiefs from Group of 20 key economies in Brazil.

Brown urged countries with large financial resources, such as oil-producing Gulf states, to contribute to a new IMF facility and said he expected Saudi Arabia to contribute -- after some time.

"The Saudis, I think, will contribute so we can have a bigger fund worldwide," Brown, who was also seeking investment and help on oil prices, told reporters in the Saudi capital, Riyadh.

"The oil-producing countries, who have generated over USD 1 trillion from higher oil prices in recent years, are in a position to contribute."

He later got a positive reception in Qatar, where Prime Minister Sheikh Hamad bin Jassim al-Thani said the cash-rich state was willing to help tackle the financial crisis.

Earlier in Kuwait, the finance minister said the government would base any decision to support international markets on potential returns and investment opportunities.


USD weaker

The U.S. dollar weakened on Monday, after recording its biggest monthly gain in more than 17 years in October, with investors bracing for another round of interest rate cuts this week by the world's major central banks.

The European Central Bank, the Bank of England and the Reserve Bank of Australia are all set to lower rates to support their struggling economies from the threat of a looming global recession.

By early Asian trade, the euro was a bit stronger at USD 1.2855 against the dollar, having lost about 9.6 % in October, the single currency's worst monthly performance since its launch in 1999.

The yen was trading around 99.30 yen.


Japanese markets closed

Due to a public holiday Japanese markets was closed Monday.

Published on  Mon, Nov 3 2008, 05:57 GMT

11

0

Oil fell on growth concern

Fri, Oct 31 2008, 06:01 GMT
by Jyske Bank Team

Jyske Bank


  • Asian shares fell

  • JPY declined in New York trading

  • Yen regained losses vs. dollar and euro

Today’s main events:

  • EUR: CPI

  • EUR: Unemployment Rate

  • USD: Personal Consumption

  • USD: Personal Income/Spending


American Time Zone:

U.S. Stocks

U.S. stocks rose after the economy contracted less than forecast in the third quarter and investors speculated global interest-rate cuts will stem a further slump.

Intel Corp., Disney Co. and JPMorgan Chase & Co. climbed more than 5.3 % after the government said the economy shrunk 0.3 % last quarter. Colgate-Palmolive Co. jumped 7 % on better-than-estimated earnings. The advance added to a global rally after Hong Kong joined the U.S. in lowering borrowing costs and the Federal Reserve provided USD 120 billion to spur lending in emerging markets.


JPY declined in New York trading

The yen fell against the dollar as global interest-rate cuts sparked gains in stocks, boosting demand for higher-yielding assets funded by loans in Japan. Japan's currency also weakened on speculation the Bank of Japan will reduce borrowing costs tomorrow.


Oil fell on growth concern

Crude oil fell on concern that the biggest decline in the U.S. economy since 2001 will further curb fuel demand in the world's biggest energy consuming country.


Far East Time Zone:

Asian shares fell

Most Asian shares fell on Friday as concerns over the global economy and caution ahead of a Bank of Japan rate decision halted a powerful three-day rally, sending safer havens such as regional bonds and the yen higher.

Regional shares were set to end October as their worst month on record -- worse even than during the Asian financial crisis a decade ago -- as global economies buckle under the weight of the biggest financial crisis since the Great Depression.

Policy makers have responded by cutting interest rates and injecting liquidity, but investors fear the measures may only have a temporary effect in what could be a severe and long-lasting global recession.

Oil prices dropped more than USD 1 a barrel on Friday after data showed the U.S. economy suffered its sharpest contraction in seven years in the third quarter, as consumers cut spending and businesses reduced investment.

Nikkei was down 1.4 % at 8,905.85 at 4:30 GMT.


Yen regained losses vs. dollar and euro

The yen rose against the dollar and euro as a drop in Tokyo share prices renewed investor concern over riskier assets, while players cautiously awaited the Bank of Japan's policy decision due later in the day.

The weakness in stocks reflected gloomy prospects for the world's economies despite global interest rate cuts -- prospects which weighed on high-yielding currencies, traders said.

The yen was likely to remain supported as investors unwind investments in riskier assets which were funded by the low-yielding yen, traders said.

Traders said the rally in Tokyo shares and the dollar's rise against the yen on news that the BOJ was considering an easing at Friday's board meeting may be too strong for the central bank to ignore.

The BOJ's meeting follows a 50-basis-point rate cut by the U.S. Federal Reserve earlier in the week to cushion an economic downturn.

The dollar fell 0.4 % against the yen to 98.17 yen, after rising to a high of 99.13 yen on Thursday. The euro fell 1.1 % against the yen to 125.85 yen, off a high of 131.05 yen on Thursday.

The euro fell 0.7 % at USD 1.2830, down sharply from a high of USD 1.3300 on Thursday.

Japanese financial markets will be closed on Monday for a national holiday.

Published on  Fri, Oct 31 2008, 06:01 GMT

0

0

Asian stocks up for a 3rd day on a row

Thu, Oct 30 2008, 05:44 GMT
by Jyske Bank Team

Jyske Bank


  • USD fell as FED cut rates

  • Yen drops as Nikkei rise

  • RBA: Inflation may limit rate room

Today’s main events:

  • GBP: Nationwide Housing Prices

  • EUR: Consumer Confidence

  • USD: Gross Domestic Product

  • JPY: Interest Rate Decision


American Time Zone:

U.S. Stocks

U.S. stocks fell on Wednesday as a big rally faltered in the last minutes of trading on worry about the weakening corporate profit picture after a news report raised questions about General Electric's earnings outlook.

In a move that has been the trademark of the market's volatility ever since Lehman Brothers' bankruptcy filing in mid-September, the Dow plunged more than 300 points in the last 12 minutes, dashing prospects for the first back-to-back gains in a month.

Aside from the GE news, reported by Dow Jones with less than 15 minutes left in the session, traders said hedge funds and mutual funds were dumping stocks to raise cash to repay clients and lenders, while other investors were eager to lock in some profit from Tuesday's huge rally.

The Dow Jones industrial average fell 74.16 points, or 0.82 %, to close at 8,990.96. The Standard & Poor's 500 Index declined 10.42 points, or 1.11 %, to 930.09. But the Nasdaq Composite Index rose 7.74 points, or 0.47 %, to 1,657.21.


USD fell as FED cut rates

The dollar fell the most since 1998 against the currencies of six major U.S. trading partners as the Federal Reserve cut the target lending rate to a level matching a half-century low, saying risks to the economy remain.

The euro had the biggest two-day advance versus the dollar in a month after Chancellor Angela Merkel said Germany will announce “bold'' measures to bolster the economy.


Oil higher

Crude oil climbed more than USD 5 a barrel, the biggest gain in a month, amid signs that central bank interest-rate cuts may help fuel demand.


Far East Time Zone:

Asian stocks up for a 3 day in a row

Asian stocks rose for a third day on Thursday, boosted by the prospect of more growth-supportive policies globally following interest rate cuts by China and the United States that pushed up commodity prices and knocked down the yen.

The Federal Reserve cut its benchmark rate to 1 % on Wednesday to the lowest since June 2004, to soften the blow of a potentially deep recession. Norway and China had cuts of their own and pressure mounted on the Bank of Japan for a rate reduction after it meets on Friday.

For now, the avalanche of government measures taken to increase bank liquidity, including USD 120 billion of currency swap lines opened between the Fed and four emerging markets, have prompted investors to take on risks.

This has boosted currencies such as the Australian dollar and the South Korean won.
Credit availability and risk taking are essential to the functioning of the financial system.

The Nikkei rose 8.2% recovering from a 26-year low hit on Tuesday. The weaker yen emboldened investors to buy shares of exporters such as Honda Motor Co and Canon Inc.


Yen drops as Nikkei rise

The yen fell broadly on Thursday as a rise in Tokyo share prices and growing expectations the Bank of Japan could cut interest rates this week prompted investors to take profits on the Japanese currency's surge this month.

The euro rose against the dollar, rebounding further from a 2-1/2-year low hit earlier this week as a sharp rally in oil overnight encouraged investors to pick up currencies that had been battered during a steep and rapid slide in recent months from record highs near USD 150 in mid-July.

The dollar rose 1.6 % to 99.13 yen, staying well above a 13-year trough of 90.87 yen hit on trading platform EBS late last week.

The euro climbed to USD 1.3300, extending its rebound from a 2-1/2-year low of USD 1.2329 struck on EBS on Tuesday.

The European single currency jumped against the yen to 131.05 yen. The euro hit a 6-1/2-year low below 114 yen on last Friday.


RBA: Inflation may limit rate room

One of Australia's top central bankers on Thursday said the high level of inflation could limit room for manoeuvre on interest rates, pointing to some caution about cutting rates too aggressively in coming months.

The Reserve Bank of Australia (RBA) is still widely expected to cut rates by at least 50 basis points at its policy board meeting next Tuesday, though Deputy Governor Ric Battellino's comments saw markets trim expectations of a bigger move.

Telling households to beware of too much pessimism, Battellino also said the economy was on track to avoid the recession engulfing many other developed countries.

"The bank has for some time thought that inflation would peak in the second half of 2008 and then fall; accordingly, we have acted pre-emptively in reducing interest rates," said Battellino.

"Nonetheless, there is still a big task ahead to bring inflation down and this could limit room for manoeuvre on monetary policy," he added

The RBA slashed its key cash rate by 100 basis points to 6.0 % earlier this month, the biggest cut in 16 years, even as core inflation was running at a 17-year high of 4.7 %. Investors have been assuming rates would be lowered as far as 5 % by Christmas.

Published on  Thu, Oct 30 2008, 05:44 GMT

20

0

Second−best day ever for U.S. Stocks

Wed, Oct 29 2008, 06:01 GMT
by Jyske Bank Team

Jyske Bank


  • JPY has biggest ever drop against EUR

  • IMF Presents rescue deal for Hungary

  • Asian stocks extend rally

Today’s main events:

  • NOK: Norges Bank Interest Rate decision

  • SEK: Consumer Confidence

  • DEM: Consumer Price Index

  • USD: FED Interest Rate decision


American Time Zone:

Second-best day ever for U.S. Stocks

Wall Street marked its second-best day ever on Tuesday as investors, convinced that central banks worldwide will cut rates even more, scooped up stocks that had been driven down to their lowest prices in more than five years.

A big catalyst for the late-day surge was a huge drop in the Japanese yen after a news report that the Bank of Japan may cut interest rates later this week. A sudden strengthening of the yen during the past week had been destabilizing stock markets around the world, and Tuesday's reversal of that trend was greeted with relief by investors.

The Federal Reserve is expected to cut its benchmark fed funds rate by at least 50 basis points on Wednesday when it concludes a two-day meeting that began this afternoon.

The Dow Jones industrial average jumped 889.35 points, or 10.88 %, to 9,065.12. The Standard & Poor's 500 Index surged 91.59 points, or 10.79 %, to 940.51. The Nasdaq Composite Index ran up 143.57 points, or 9.53 %, to 1,649.47.


JPY has biggest drop ever against EUR

The yen fell the most against the euro since the 15-nation currency's 1999 debut and dropped versus the dollar as a rebound in global stocks encouraged investors to reduce bets against higher-yielding currencies.

Japan's yen declined versus the Australian and New Zealand dollars on speculation carry trades will get a boost and Japan's central bank will sell the yen for the first time in four years to help exporters. The Bank of Japan is leaning toward reducing its target lending rate by a quarter-percentage point to 0.25 %, a source reported to Reuters today.


Oil declined

Crude oil fell for at third day after a report showed that U.S. consumer confidence dropped to the lowest level on record in October.


Far East Time Zone:

IMF presents rescue deal for Hungary

The International Monetary Fund, the European Union and World Bank on Tuesday agreed to a USD 25.1 billion economic rescue package for Hungary to bolster confidence in its economy hit by the global financial crisis.

The IMF said in a statement it had reached an agreement with Hungary for a USD 15.7 billion loan program (12.5 billion euros), while the European Union stood ready with an additional USD 8.1 billion in financing and the World Bank another USD 1.3 billion. The IMF loan will be disbursed over 17 months.

It is the biggest international rescue package for an emerging market economy since the start of the current global crisis and is the first for an EU-member country. Last week the IMF approved a USD 2.1 billion deal for Iceland and a USD 16.5 billion program for Ukraine.

The IMF said its board could approve the Hungary deal in early November under emergency rapid-response procedures activated earlier this month as the credit market crisis spread from the United States and Western Europe.

"The Hungarian authorities have developed a comprehensive policy package that will bolster the economy's near-term stability and improve its long-term growth potential," IMF Managing Director Dominique Strauss-Kahn said in a statement.

"At the same time it is designed to restore investor confidence and alleviate the stress experienced in recent weeks in the Hungarian financial markets," he added.

The IMF financing is more than 10 times Hungary's IMF quota, above the limit of three times the quota for countries seeking to borrow. Each IMF member is assigned a quota based on its size in the world economy, which determines its financial commitment to the fund, its voting power, and has a bearing on how much it can borrow from the global lender.

Hungary's economy has been battered by the financial crisis because its banking system is heavily exposed to foreign financing at a time when investors are pulling back from developing economies worldwide.


Asian stocks extend rally

Asian stocks and government bonds rallied on Wednesday, on hopes the Bank of Japan and the Federal Reserve will cut interest rates this week to spur growth, while credit markets continued to show signs of recovery.

Oil prices also rose as investors latched on to the upward momentum in global equities, hoping for a sustained revival in willingness to take risks for higher returns.

Attractive valuations in almost every industry inspired the stock market rally, taking place after a brutal sell-off that has seen Japan's Nikkei index fall as much as 40 % in the past month.

Central banks around the world were expected to lower benchmark interest rates further to support growth in coming days. The Fed is widely expected to cut its key rate for the ninth time since September 2007 later on Wednesday, and the Bank of Japan will consider lowering its policy rate at a meeting on Friday, according to sources familiar with the matter.
The Bank of England and the European Central Bank were both forecast to lower borrowing costs as well next week.

How much any of these actions will turn around near-term prospects for major economies is unclear, especially since the U.S. labour market is forecast to have lost nearly 180,000 jobs this month and economists from JPMorgan to UBS see the global economy sliding into recession.

The Nikkei rose 6.4 %, after plumbing to its lowest since 1982 on Tuesday. The index is still down 21 % in October, causing speculation that Japanese banks have likely taken big hits on their domestic portfolios.

Published on  Wed, Oct 29 2008, 06:01 GMT

27

0

JPY gained and GBP declines

Tue, Oct 28 2008, 05:27 GMT
by Jyske Bank Team

Jyske Bank


  • Japan: Yen rise not due to fundamentals

  • Australia central bank intervenes again

  • U.S. Stocks closed at 5-½ year low

 Today’s main events:

  • SEK: Retail Sales

  • DEM: GFK Consumer Sentiment

  • USD: Consumer Confidence


American Time Zone:

U.S. Stocks closed at 5-½ year low

U.S. stocks closed at their lowest levels in 5-½ years on Monday, extending a global sell-off as worry about the severity of a global recession and the bleak outlook for profits gripped investors.

Trading was volatile and volume was light, with stocks falling sharply in the last half hour of trading. With just four days left in October, the S&P 500 is on track for its worst month ever in the post-World War Two period.

Hedge funds and mutual funds have been dumping stocks to raise cash to meet redemptions from their clients, traders noted, exacerbating the late-day selling.

Shares of energy companies led the decline on bets that a deep global slowdown will sap demand for energy. ConocoPhillips shed 5.8 % to USD 45.62 as U.S. crude oil futures slid 93 cents to settle at USD 63.22 a barrel on the New York Mercantile Exchange.


JPY gained and GBP declined

The yen rose to the strongest level versus the euro since May 2002 and traded near a 13-year high against the dollar as global economic turmoil encouraged investors to sell higher-yielding assets funded in Japan.

French Finance Minister Christine Lagarde said in an interview with Bloomberg News that the Group of Seven doesn't plan to intervene to weaken the yen after the G-7 said in an unscheduled statement that excessive movements in the currency may threaten financial stability. The pound slid after an industry report showed U.K. house prices slumped.


Far East Time Zone:

Japan: Yen rise not due to fundamentals

The recent surge in the yen does not reflect Japan's economic fundamentals, Economics Minister Kaoru Yosano said, adding that an interest rate cut by the Bank of Japan would affect neither the currency nor the economy.

Reflecting growing concern over the recent volatility in market moves, Finance Minister Shoichi Nakagawa said the government would ban from Tuesday naked stock short-selling, in which traders effectively sell stocks without first borrowing them to sell.

But Nakagawa would not comment on whether Japan will intervene in the currency market to tame further yen gains. The yen has leapt about 20 % on a trade-weighted basis this month as investors unwound carry trades.

On Tuesday yen slipped against major currencies as some market players booked profits on the recent surge.

Government efforts to stabilise financial markets have provided little respite, with the Nikkei stock average sliding below 7,000 to hit a 26-year intraday low on Tuesday. At 3:40 GMT Nikkei had recovered and was trading in positive territory at 7,297.


Australia central bank intervenes again

Australia's central bank intervened to prop up the Aussie dollar for a third straight day on Tuesday after the currency fell to fresh 5- year lows against the U.S. currency in offshore trade.

A spokesman for the Reserve Bank of Australia (RBA) said the central bank was providing liquidity in an illiquid market, echoing comments made a day earlier.

Dealers also said the central bank was buying the Australian dollar at around the AUD 0.6060 level during the European session on Monday, but the RBA declined to confirm that.

"They are trying to make the decline less disorderly," said John Horner, foreign exchange strategist at Deutsche Bank. "Despite their intervention, the process of deleveraging and pricing of a global slowdown will continue to weigh down on the Aussie."

Published on  Tue, Oct 28 2008, 05:27 GMT

21

1

JPY rallied and GBP dropped

Mon, Oct 27 2008, 05:27 GMT
by Jyske Bank Team

Jyske Bank


  • Oil lower despite OPEC cut

  • PM Aso seeks steps to stabilise markets

  • IMF helps Ukraine and Hungary

  • …and Iceland may be next in line

Today’s main events:

  • SEK: Trade Balance

  • EUR: M3 Money Supply

  • USD: New Home Sales

  • JPY: Retail Sales


American Time Zone:

U.S. Stocks

U.S. stocks dropped and the benchmark index for global equities slid to a five-year low as concern grew that the credit crisis has infected the broader economy.

Bank of America Corp., DuPont Co. and Caterpillar Inc.5.9270 declined more than 4 % as all 10 industry groups in the Standard & Poor's 500 Index fell at least 2.6 %. Losses were worse in overseas markets as South Korean shares tumbled 11 %, while Russia's market plunged 14 % before trading was halted.

“It's a bear market on steroids,” David King, a money manager at Putnam Investments, who helps oversee about USD 137 billion, told Bloomberg Television. “It's very accelerated by the pace of financial markets today.”


JPY rallied and GBP dropped

The yen climbed to a 13-year high against the dollar as a worldwide rout in stocks encouraged investors to dump higher-yielding assets and pay back low-cost loans in Japan.

Japan's currency surged to the strongest in six years against the euro, posting its biggest gain ever, as the prospect of a deepening global recession prompted the unwinding of carry trades. The pound fell below USD 1.53 in its biggest drop in at least 37 years after the U.K. economy shrank in the third quarter. The dollar rose to a two-year high versus the euro as investors sought refuge in the greenback.


Oil lower despite OPEC cut

Crude oil tumbled to a 16-month low as OPEC's decision to slash production by 1.5 million barrels a day failed to ease concern that the global economic slump is curbing fuel demand.


Far East Time Zone:

PM Aso seeks steps to stabilise markets

Japanese Prime Minister Taro Aso asked ministers to consider steps to stabilise tumbling stock markets and strengthen the nation's financial system amid the global credit crisis, Japanese Economics Minister Kaoru Yosano said on Monday. As part of such measures, the Prime Minister also instructed the use of a government organisation to buy shares from banks, hike limits on bank recapitalisations and extend tax relief on stocks and dividend income, Yosano told reporters.
Aso, however, did not discuss the prospect of foreign exchange market intervention, at the meeting with economic ministers.


IMF helps Ukraine and Hungary

The International Monetary Fund on Sunday reached an agreement in principle with Ukraine for a USD 16.5 billion loan package to ease the effects of the financial crisis.

The IMF also said that it will announce a "substantial financing package" for Hungary in the next few days that will include financing by the European Union and some individual European governments.

More such deals are expected as other emerging market governments turn to the IMF for help.


… and Iceland may be next in line

Crisis-struck Iceland called on the International Monetary Fund for USD 2 billion in aid on Friday to help fix a broken banking system, restart currency trading and soften the blow from a withering economic downturn.

The Washington-based lender said its staff in Reykjavik and Icelandic authorities had reached agreement on an economic program that would be supported by the financial assistance.

The deal still needs to be approved by the IMF board and Prime Minister Geir Haarde said he expected it would take about 10 days for the review to take place.

The prime minister said total funding needs had not been quantified exactly. "With the USD 2 billion from IMF, that would be a good part of it, but I think we still need several billion in addition."

Published on  Mon, Oct 27 2008, 05:27 GMT

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JPY at 6 year high as turmoil continues

Fri, Oct 24 2008, 05:49 GMT
by Jyske Bank Team

Jyske Bank


  • Oil higher on Iranian comments

  • Asian stocks extend slide

  • ECB has rate ammo to fight recession

Today’s main events:

  • DEM: Purchasing Managers Index

  • USD: Gross Domestic Product

  • USD: Existing Home Sales


American Time Zone:

U.S. Stocks

U.S. stocks rose for the first time in three days as a rebound in oil from a 16-month low bolstered speculation that the global economic slump won't worsen.

The S&P 500 recovered from a 5-year low, gaining 6.71 points, or 0.8 %, to 903.49 at 3:51 p.m. in New York. The Dow Jones Industrial Average rose 134.21, or 1.6 %, to 8,653.42. The Nasdaq Composite Index slipped 16.69, or 1 %, to 1,599.06.

“There are whole segments of stocks moving in the same direction, if not the same magnitude, as oil,'' said Janna Sampson, co-chief investment officer at Oakbrook Investments LLC in Lisle, Illinois, which manages USD 1.2 billion. “It's serving as a proxy for the health of the broader global economy.''

Stocks fell earlier, led by financial and consumer shares, after home foreclosures surged to a record and the credit crisis hammered earnings at asset-management and real-estate companies.


JPY at 6 year high as turmoil continues

The yen traded near the highest level against the euro since 2002 as global economic turmoil led investors to sell higher-yielding assets and pay back low-cost loans in Japan's currency.

Brazil's real and Mexico's peso rallied after their central banks bought the currencies to stem losses. The pound fell against the dollar as a government report showed retail sales in the U.K. dropped last month.


Oil higher on Iranian comments

Crude oil rose from a 16-month low after Iran said OPEC should cut production by 2 million barrels a day to stem the slump in prices.


Far East Time Zone:

Asian stocks extend slide

Asian stocks fell on Friday, led by a 7 % drop in Japan's Nikkei, as the global economic slowdown slashed earnings prospects for an array of companies, forcing investors to look to safer government bonds.

The stronger yen has been particularly damaging to the competitiveness of Japanese exporters as it curbs their overseas profits when they are brought home and erodes the competitiveness of their products.

A handful of companies that have expressed positive outlooks have not been able to turn investor sentiment around to focusing on value rather than on the uncertainty of economic factors.

Japan's Nikkei share average fell 7.3 %, down for a third day after hitting a 5-year low on Thursday, and shrugging off late gains on Wall Street. Sony slumped 13 % and was one of the biggest decliners in the index.


ECB has rate ammo to fight recession

The worst of the financial crisis is now over but the prospect of a long European recession could mean further interest rates cuts, European Central Bank policy maker Ewald Nowotny said in an CNBC interview to be shown on Friday.

In the interview, seen by Reuters, Nowotny said the last week had marked "the turning point" in the financial turmoil and markets were now more confident as a result of the crisis measures implemented by governments and central banks.

Asked whether the ECB could cut rates further, Nowotny raised the possibility of solo moves or of a repeat of the recent coordination.

"From the point of view of the ECB, we have our special mandate and we have to follow this so, in some cases, it might be a good thing to be coordinated and in other situations it might be necessary to go it alone.”

"The policy of the ECB in the last year also was a biased one and now there is ammunition to spend," he added.

Published on  Fri, Oct 24 2008, 05:49 GMT

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Stocks drop on dark global economy outlook

Thu, Oct 23 2008, 05:38 GMT
by Jyske Bank Team

Jyske Bank


  • EUR/USD continued lower

  • Oil dropped to 16 month low

  • Japan exports stall as crisis bites

  • NZ cut rates by record 100 bp

 Today’s main events:

  • SEK: Riksbank Rate Decision

  • GBP: Retail Sales

  • USD: Jobless Claims

  • USD: Housing Price Index


American Time Zone:

U.S. Stocks

U.S. stocks sank and the Standard & Poor's 500 Index dropped to the lowest level since April 2003 on concern a worsening global economic slump will damp corporate profits.

Exxon Mobil Corp. tumbled 9.7 % and Freeport-McMoRan Copper & Gold Inc. plunged 18 % as crude, copper and gold fell. Coventry Health Care Inc. tumbled 51 % as the health insurer's earnings were hurt by bad investments and rising medical costs. SanDisk Corp. sank 32 % after Samsung Electronics Co. abandoned its takeover bid.

European and Asian shares fell, while an index of emerging market stocks slumped 8.4 % on concern Argentina may default on its debt.


EUR/USD continued lower

The single European currency slid to the weakest in almost five years versus the yen as global stocks declined, encouraging investors to sell higher-yielding assets and pay back low-cost loans in Japan.

NOK dropped sharply as the turmoil in Scandinavian currencies continued. The declined occurred even though the Norwegian Central bank said it will reduce the daily FX purchases in October for the oil fund to NOK 620 mln. from NOK 1.2 bln.


Oil dropped to 16 month low

Crude oil fell more than USD 5 a barrel to a 16-month low and gasoline tumbled as weakening fuel consumption outweighed prospects of a production cut by OPEC at a meeting this week.


Far East Time Zone:

Japan exports stall as crisis bites

Japan's exports grew only slightly in September from a year earlier as the spreading effects of the global financial crisis take their toll on demand for Japanese goods, prompting renewed speculation of an interest rate cut.

A dive in car shipments to the United States and slowing demand from emerging economies reinforced worries that the Japanese economy, heavily dependent on exports by its big firms, is heading into recession.

Exports grew only 1.5 % in September from a year earlier, well short of a median forecast for a 5.2 % rise, Ministry of Finance data showed on Thursday. That followed a 0.3 % rise in August from a year earlier, when Japan logged its first effective deficit in nearly 26 years as sky-high oil prices pushed up imports while overseas demand for Japan-made goods weakened due to the spreading financial crisis.

Exports to the United States fell 10.9 % from a year earlier, after posting their biggest-ever fall of 21.8 % in August data. It was the 13th straight monthly decline. Exports to the European Union fell 9 %, their fourth fall in five months of data, as the region has been engulfed in the financial crisis. Shipments to Asia, which have held up in the face of problems elsewhere, rose only 2.9 %.

Japan's trade surplus almost evaporated as a still-hefty oil bill sent imports up 28.8 % from a year ago. The trade surplus shrunk 94 %.


Stocks drop on dark global economy outlook

Asian stocks dropped to a four-year low for a second day on Thursday, with exporters especially hard hit, on growing fears that a severe global downturn would depress corporate earnings further.

Markets in developing countries, especially those that depend on portfolio flows to balance their current accounts, were abandoned overnight, with almost no one spared from a sharp slowdown in the global economy that has pushed crude prices below USD 70 a barrel and dragged copper prices to a three-year low.

The outlook for export-dependent Asian economies darkened, hitting the shares of many high-profile companies that have staked their business on overseas sales, such as Samsung Electronics and Canon Inc. Japan's trade data showed exports in September were much weaker than expected, with exports to the United States down 11 % from the same month last year.

Japan's Nikkei share average slumped 6.9 % in early trade, having now fallen 21 % in October alone. Japanese exporters have been undercut by the persistent strength of the yen, which reduces their competitiveness. The yen hit a five-year high against the euro earlier on Thursday.


NZ cuts rates by record 100 bp

New Zealand's central bank slashed interest rates by a record one percentage point on Thursday and said further cuts are in the pipeline as the global financial crisis threatens to exacerbate a local recession.

The Reserve Bank of New Zealand cut its official cash rate to 6.5 %, the lowest since January 2005, citing financial market turmoil and markedly slower economic growth.

Analysts said the bank's move was in line with expectations, but noted its comments that it was still concerned about high inflation, although that would not stand in the way of further rate cuts.


EUR falls to a new low vs. USD and JPY

The euro fell to the lowest level since January 2003 against the yen as global stocks plunged, encouraging investors to cut holdings of higher-yielding assets funded in Japan.

The 15-nation currency dropped for a seventh day against the dollar, its longest stretch since Sept. 8, on bets the European Central Bank will lower interest rates as the global economy heads for a recession. The British pound declined to near a five-year low on speculation U.K. consumer spending shrank and the economy slowed, adding to evidence the Bank of England may cut borrowing costs.

The euro fell to 124.70 yen as of 03:00 GMT from 125.60 late yesterday in New York, after dropping to as low as 124.13. The euro weakened to USD 1.2796 from USD 1.2855 late yesterday. It was earlier as low as USD 1.2728.

Published on  Thu, Oct 23 2008, 05:38 GMT

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King: Recession in England seems likely

Wed, Oct 22 2008, 05:32 GMT
by Jyske Bank Team

Jyske Bank


  • EUR falls to 20-month low vs. USD

  • JPY at three-year high

  • Oil declined

  • Australia core inflation jumps to 17-year peak

 Today’s main events:

  • GBP: BOE Minutes

  • NZD: Interest Rate Decision

  • USD: MBA Mortgage Applications


American Time Zone:

U.S. Stocks

U.S. stocks slid as companies from Texas Instruments Inc. to Freeport-McMoRan Copper & Gold Inc. reported profit and revenue that failed to meet analysts' estimates.

Texas Instruments, the second-largest U.S. semiconductor maker, declined 6.3 %, while Sun Microsystems Inc. retreated 17 % after reporting a loss and posting revenue that fell short of consensus projections. Freeport-McMoRan, the largest publicly traded copper producer, slumped 11 %.

Western Union Co. tumbled 18 % after the world's biggest money-transfer business withdrew long-term profit targets because of uncertain global markets.


JPY at three-year high

The yen climbed to a three-year high against the euro and gained versus the dollar on bets central banks will lower borrowing costs to limit the global economic slump, encouraging investors to sell higher-yielding assets. The sharp declines continued in SEK and NOK and GBP also fell sharply.


Oil declined

Crude oil fell more than USD 3 a barrel as the U.S. dollar rose to its highest in more than a year against the euro, dimming the appeal of commodities as a hedge.


Far East Time Zone:

King: Recession in England seems likely

Bank of England Governor Mervyn King said Britain's worst banking crisis since World War I is likely to push the economy into a recession, requiring policy makers to act “promptly” to prevent inflation from slowing too much.

“The combination of a squeeze on real take-home pay and a decline in the availability of credit poses the risk of a sharp and prolonged slowdown in domestic demand,” King said in a speech to executives in Leeds, England.

King said house prices will continue to fall and the pound may depreciate further in his first explicit acknowledgement that a U.K. recession is likely.


EUR falls to 20-month low vs. USD

The euro fell to a 20-month low against the dollar on Wednesday as investors bet that interest rates outside the United States will be cut sharply to try to bolster global growth.

The euro fell below USD 1.3000 for the first time since February 2007 to a low of USD 1.2930, on trading platform EBS.

Earlier in the day, sterling fell to a low of USD 1.6475, its lowest since September 2003, after Bank of England Governor Mervyn King said on Tuesday that Britain's economy is probably entering its first recession in 16 years.


Australia core inflation jumps to 17-year peak

Core inflation in Australia jumped by more than expected to hit 17-year highs last quarter as the price of everything from food to fuel and housing rose.

Yet analysts and investors believed this was the peak for inflation and a looming global recession promises to pull down prices over time, giving the Reserve Bank of Australia (RBA) the liberty to cut interest rates even deeper.

"We still regard inflation as a central issue, but the questions around inflation have in a sense been overtaken by the wider economic impact of the global financial crisis," Finance Minister Lindsay Tanner told Reuters in an interview.

The headline consumer price index (CPI) rose 1.2 % in the third quarter, above the 1.0 % expected. The annual pace picked up to 5.0 %, from 4.5 % the previous quarter.

Excepting a period in 2000/01 when the CPI was biased sharply higher by the introduction of a sales tax, that was the highest annual reading since 1995.

When setting policy, the RBA focuses on the average of its two measures of core inflation which strip out the biggest price moves in any quarter in the hope of finding the underlying trend.

The average of these two measures, the weighted median and trimmed mean, rose almost 1.3 % in the third quarter, compared to the second when they rose 1.1 %.

The annual pace accelerated to 4.7 %, the fastest since mid-1991, from 4.4 % in the second quarter, to be uncomfortably far above the RBA's long-term target of 2 to 3 %.

Still, the central bank had fully expected a spike in inflation in the third quarter and had been confident that a sharp slowdown in domestic demand would tame inflation over time.

That conviction has only been strengthened by the recent steep fall in commodity prices.
Analysts estimate the drop in oil alone could subtract a sizable 0.6 % points from the CPI in the current quarter.

Published on  Wed, Oct 22 2008, 05:32 GMT

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U.S. Stocks rose

Tue, Oct 21 2008, 05:49 GMT
by Jyske Bank Team

Jyske Bank


  • Oil higher as OPEC cut expected

  • USD rose

  • Australia economy set for softer landing

  • Nikkei climbs

Today’s main events:

  • GBP: CBI Industrial Trends Survey

  • CAD: BOC Interest Rate Decision

  • JPY: All Industry Activity Index


American Time Zone:

U.S. stocks rose

U.S. stocks rose, adding to the Dow Jones Industrial Average's best weekly gain in five years, after Halliburton Co.'s profit topped estimates and Federal Reserve Chairman Ben S. Bernanke endorsed an economic stimulus package.

Halliburton, the world's second-largest oilfield-services provider, jumped 14 %, while Exxon Mobil Corp. added 10 %. NRG Energy Inc. surged 29 %, the most since emerging from bankruptcy in 2003, on Exelon Corp.'s offer to buy the power producer for USD 6.2 billion.

Energy companies, the industry with the highest estimated earnings growth this year, led the 30 % drop in the Standard & Poor's 500 Index from Aug. 31 to Oct. 10. The group rallied 11 % today.


USD rose

The dollar rose against the euro for a fourth day as Federal Reserve Chairman Ben S. Bernanke endorsed additional fiscal stimulus. The dollar advanced on speculation U.S. government and central-bank efforts will help the world's largest economy recover from a recession before the rest of the world.


Oil higher as OPEC cut expected

Crude oil rose for a second day on signs that the Organization of Petroleum Exporting Countries may cut output to halt a 50 % drop in prices since July.


Far East Time Zone:

Nikkei climbs

The Nikkei average climbed 2.6 % on Tuesday, buoyed by exporters such as Canon Inc on a softer yen and amid hopes for more spending by the U.S. government to shore up the economy.

Investors also continued to pick up so-called defensive stocks such as drugmaker Takeda Pharmaceutical Co due to mounting worries about the outlook for the global economy.

The broader Topix climbed 2.5 % to 950.41.


Australia economy set for softer landing

The head of Australia's central bank on Tuesday said its aggressive interest rate cut this month, combined with fiscal stimulus and a fall in the local dollar, would help cushion the domestic economy from global turmoil.

"These changes will act to lessen the extent of the likely slowdown in Australia's economy, even as global forces work the other way," Reserve Bank of Australia Governor Glenn Stevens told business leaders in a speech. He also said steps by central banks to add liquidity to credit markets and support stressed banks looked to be working, lessening the risk of a "global catastrophe".

The RBA cut its cash rate by a dramatic 100 basis points to 6.0 % earlier this month, the biggest easing in 16 years.

This essentially brought forward reductions that might ordinarily have taken place over several months, said Stevens.

"The Australian government has made a significant change to the fiscal stance which will flow through to the demand side of the economy," added Stevens.

The Labor government last week suddenly announced a stimulus package worth AUD 10.4 billion (USD 7.3 billion), equal to about 0.9 % of economic output.

And there was the fall in the Australian dollar, which had tumbled by around 20 % in trade weighted terms in the past couple of months.
This "also amounts to a significant change for the trade-exposed sectors of the economy," said Stevens.

Published on  Tue, Oct 21 2008, 05:49 GMT

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JPY declined

Mon, Oct 20 2008, 05:50 GMT
by Jyske Bank Team

Jyske Bank


  • Oil rose ahead of OPEC meeting

  • ING receives EUR 10 billion injection

  • Strict conditions on German rescues

Today’s main events:

  • DEM: PPI

  • USD: Leading Indicator

  • USD: FED’s Bernanke speaks


American Time Zone:

U.S. Stocks

U.S. stocks swung between gains and losses as Warren Buffett's advice to buy shares and Google Inc.'s earnings offset reports showing the housing slump and consumer confidence worsened.

Google jumped 9 % after saying customers continued to buy Web ads even amid a slowing economy. D.R. Horton Inc. and Meritage Homes Corp. led a gauge of builders down on a commerce Department report that construction of single-family homes plunged to the lowest level in a quarter century.
The Dow Jones Industrial Average recovered from a decline of 261 points spurred, then fell again, as the expiration of options spurred volatility amid the wildest month for market swings since 1929.


JPY declined

The yen headed for its first weekly drop against the euro in a month as an early rally in U.S. stocks encouraged investors to buy higher-yielding assets funded by low-cost loans in Japan's currency.


Oil rose ahead of OPEC meeting

Crude oil advanced more than USD 4 a barrel in New York on signs that OPEC will announce a production cut at a meeting next week.


Far East Time Zone:

ING receives EUR 10 billion injection

ING became the latest European bank to seek government funding on Sunday, agreeing to a 10 billion euro (USD 13.5 billion) cash injection as well as scrapping executive bonuses and its year-end dividend.

Following a weekend of intense negotiations after seeing its share price sliced by over a quarter in the latest trading session and the partial nationalisation of rival Fortis two weeks ago, ING sought help to shore up its core capital and restore investor confidence.

As governments around the world pour in billions of dollars of state cash to help stabilise their banks, the Dutch government has set aside 20 billion euros to pump capital into its financial institutions. Several British and Swiss banks tapped similar government funding lifelines in the past week.

Most of the smaller listed Dutch financial companies have indicated that they did not plan to ask for capital support, but ING and insurer Aegon had only said they were looking at the government offer.


Strict conditions on German rescues

Germany has set strict conditions for banks that make use of its 500 billion euro (USD 674 billion) rescue package, including limits on managers' salaries, bonuses and severance, according to a draft law seen by Reuters.

Berlin unveiled the broad outlines of the package last Monday in a coordinated move with other European countries designed to restore confidence in a battered financial sector. The German plan was approved by lawmakers on Friday, but the conditions that banks taking part in the scheme will be subject to, was still being discussed early on Monday.

Chancellor Angela Merkel's cabinet is expected to approve the full law later on Monday.
According to the draft, banks that make use of government funds would be forced to set "appropriate" compensation for their managers.

The draft law states that salaries above 500,000 euros per year are considered inappropriate, though a government official familiar with the talks said there was disagreement about this figure and it could still be changed before the cabinet meeting.
The draft foresees a recapitalisation cap of 10 billion euros per bank and also sets a limit on the assumption of bank risks at 5 billion euros per bank.

The government rescue package is composed of as much as 400 billion euros in guarantees to help banks with liquidity problems and up to 100 billion euros in funds for the recapitalisation of struggling financial institutions.


Yen fell again

The yen fell against the euro and the Australian dollar on Monday as a crisis summit planned for next month helped the market to regain some stability and prompted investors to pick up the recently battered currencies.

South Korea was the latest country to join efforts to help stabilise markets, while the Dutch government agreed to pump 10 billion euros into ING, the country's largest listed bank.

But analysts said safety demand for the low-yielding yen was also intact as worries grew about deteriorating financial conditions in emerging markets after Iceland, Ukraine and Pakistan asked for aid to prop up their economies, slowing the yen's fall.

The dollar was trading at 101.67 yen, nearly flat from late New York trade on Friday when more bleak U.S. data stoked fears that the credit crisis had knocked the economy into recession and pushed Wall Street shares down.

The Nikkei share average was up 1.6 % in early trade.

The euro rose 0.3 % against the yen to 136.83 yen after dipping as much as 0.3 % in early Asian trade.

Published on  Mon, Oct 20 2008, 05:50 GMT

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U.S. Stocks rose for the first time in three days

Fri, Oct 17 2008, 05:53 GMT
by Jyske Bank Team

Jyske Bank


  • USD Higher

  • Oil lower after inventory figures

  • Asian shares rose

  • Dollar retreats

Today’s main events:

  • EUR: Trade Balance

  • USD: Housing Starts

  • USD: Michigan Consumer Sentiment


American Time Zone:

U.S. Stocks

U.S. stocks rose for the first time in three days after oil retreated below USD 70 a barrel, brightening the outlook for consumer companies and overshadowing the biggest slump in industrial production since 1974.

Wal-Mart Stores Inc. and McDonald's Corp. added more than 5 % on expectations lower fuel prices will bolster consumer spending. The Dow Jones Industrial Average reversed a decline of as much as 380 points as 23 of its 30 companies advanced.

The benchmark index for U.S. stock options exceeded 80 for the first time in its 18-year history, driven higher by equities extending the biggest slide since 1987 on concern the economy will continue deteriorating. Europe's volatility benchmarks also jumped to records.


USD Higher

The dollar rose against the euro as crude oil weakened below USD 70 a barrel for the first time since August 2007 on concern the global rescue of banks won't be enough to prevent a recession.

The yen swung between a gain and a drop versus the euro, tracking the volatility of U.S. stocks.


Oil lower after inventory figures

Crude oil fell below USD 70 a barrel to the lowest since June 2007 and gasoline tumbled after a U.S. government report showed stockpiles increased more than twice as much as forecast.


Far East Time Zone:

Asian shares rose

Asian shares gained tentatively on Friday, recovering some of the steep losses in the prior session, after encouraging earnings signals from technology firms such as IBM eased some of the concerns over a global recession.

A strong day in Wall Street on Thursday helped underpin the gains, but investors remained largely cautious about the near-term outlook given continued signals the global economy is headed for a potentially deep recession.

The equity gains helped lift U.S. crude futures by nearly USD 3 a barrel, and contributed to a halt in the dollar's rally against the euro and other major currencies.

Nikkei was up 1,53 % at 8.588,11 at 03:00 GMT.

Published on  Fri, Oct 17 2008, 05:53 GMT

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U.S. equities slumped for a second day

Thu, Oct 16 2008, 06:00 GMT
by Jyske Bank Team

Jyske Bank


  • Oil price fell below USD

  • Bernanke says credit crises menacing U.S. economy

  • Citadel says September was its worst month ever

  • Nikkei plunges more than 9 %

Today’s main events:

  • USD Consumer Price Index

  • USD Initial Jobless Claims

  • USD Net Long-term TIC Flows

  • USD Philadelphia FED & NAHB Housing Market Index


American Time Zone:

U.S. equities slumped for a second day

U.S. stocks slumped for a second day, hammered by the biggest drop in retail sales in three years and growing doubt that plans to bail out banks will keep the nation out of a prolonged recession. Exxon Mobil Corp. and Chevron Corp. tumbled more than 8 % as commodity prices declined on concern the slowing economy will hurt demand. Wal-Mart Stores Inc. retreated 6 % after the Commerce Department said purchases at chain stores decreased 1.2 % last month.
Morgan Stanley lost 15 % after Oppenheimer & Co. analyst Meredith Whitney said the government's bank rescue is not a “panacea” solution.


EUR/SEK above 10.00

SEK and NOK continued the last day sharp declines with EURSEK rising above 10.00 after opening the day in Europe at 9.78.


The yen higher as stocks decline

The yen rose for the first time in five days against the dollar on speculation the U.S. plan to invest USD 250 billion in financial institutions won't prevent the world's largest economy from falling into a recession.

Japan's currency gained versus the euro and the high yielding currencies as stocks dropped globally.


Oil price fell below USD 75

Crude oil fell below USD 75 a barrel for the first time in more than a year on scepticism that a rescue of the world's banks will be enough to avoid a recession and stem a decline in global fuel demand.


Far East Time Zone:

Bernanke says credit crises menacing U.S. economy

Federal Reserve Chairman Ben Bernanke on Wednesday gave a dour assessment of the U.S. economy, citing a "significant threat" from shuttered credit markets in remarks that indicated he was open to cutting interest rates further.

Together with dismal data on retail sales and factory growth, the remarks helped send U.S. stocks on their greatest one-day percentage slide since the 1987 crash.

Bernanke said it will take some time to restore normal credit flows and pledged the U.S. central bank would continue to act aggressively to fight the crisis. Importantly, he said inflation risks were ebbing, which suggests Fed officials see latitude to lower borrowing costs further.


Citadel says September was its worst month ever

Citadel Investment Group, one of the world's largest hedge funds, said September was the single worst month in the history of the company.

In a letter to investors obtained by Reuters on Wednesday, Citadel chief executive Ken Griffin said the fund's performance reflected "extraordinary market conditions that I did not fully anticipate, combined with regulatory changes driven more by populism than policy."

Griffin said the decision by regulators around the world to ban the short selling of equities "created material dislocations across many of our portfolios and disrupted our ability to assume and manage risk."


Nikkei plunges more than 9 %

Japan's Nikkei share average tumbled almost 10 % and oil prices dropped to a one-year low on Thursday after downbeat U.S. economic data spread fears of a more protracted and sharp global slowdown than initially expected.

Optimism about the stabilisation in money markets has been swept aside and widespread selling of global equities has resumed in earnest as the quarterly results season gets underway and reports filter in about sharp losses at hedge funds.

Relative to current earnings expectations, Asian stocks are oversold. However, upcoming corporate outlooks could influence whether estimates get cut, potentially adding another weight on equities and economic prospects.
Financial market volatility as investors greatly reduce their exposure to risk has weighed on the global economic outlook, which has fed back into markets in a damaging circle.


Oil price near USD 73

The November U.S. light crude future fell for a third day to a new 13-month low near USD 73 a barrel on Thursday, down 1.9 %, amid continued worries that a deepening economic slowdown will cut into already weakening demand.

Published on  Thu, Oct 16 2008, 06:00 GMT

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U.S. equities fell

Wed, Oct 15 2008, 06:13 GMT
by Jyske Bank Team

Jyske Bank


  • FED’s Yellen says U.S. appears to be in recession

  • FED’s Bullard: Don’t rely on rates to fight crises

  • Bank of Japans Shirakawa: Financial markets very strained

  • Nikkei slipped 1.4 % on global economy worries

Today’s main events:

  • GBP Unemployment Rate

  • EUR Euro-Zone Consumer Price Index

  • NOK Rate Announcement from Norges Bank

  • USD FED’s Beige Book & Bernanke speaks


American Time Zone:

U.S. equities fell

Most U.S. stocks fell a day after the market's biggest rally since the 1930s as a worsening outlook for earnings forced investors to look beyond a USD 2 trillion global push to rescue banks.
PepsiCo lost as much as 14 %, the most since October 1987, after lowering its profit forecast as customers cut back on snacks and soft drinks. Microsoft and Intel slid more than 5 % as analysts said demand for computers is slowing.
Morgan Stanley, Citigroup Inc. and Merrill Lynch & Co. added more than 19 %, sending banking shares to a third straight advance.
Almost two stocks fell for each that rose on the New York Stock Exchange.


Dollar fell versus the euro

The dollar fell against the euro for a second day as the U.S. Treasury's plan to inject USD 250 billion into financial institutions to revive lending reduced demand for the greenback as a haven.

High-yielding currencies rallied as global governments' support of banks spurred demand for high-yielding, emerging-market assets.
The dollar dropped to the lowest versus the pound in almost a week.


Oil price lower

Crude oil fell amid scepticism that a U.S. government plan to invest USD 250 billion in banks will be enough to bolster economic growth and fuel use.


Far East Time Zone:

FED’s Yellen says US appears to be in recession

The U.S. economy "appears to be in a recession" as the financial market crisis bites, Janet Yellen, President of the Federal Reserve Bank of San Francisco, said on Tuesday.

"By now, virtually every major sector of the economy has been hit by the financial shock," Yellen said in remarks prepared for delivery to Financial Executives International in Palo Alto, California.

"The economy was weaker than expected in the third quarter, probably showing essentially no growth at all. Growth in the fourth quarter appears to be weaker yet, with an outright contraction quite likely," she said.

Yellen said she "strongly supported" last week's coordinated interest rate cut by the Fed and other major global central banks, but did not indicate if she thought another cut was needed.

Financial markets suggest the Fed will lower its benchmark fed funds rate by one-quarter point at its Oct 28-29 policy meeting, to 1.25 %.
Inflation is retreating rapidly in line with falling energy and commodity prices and rising slack in the labour market, and could overshoot to the low side, Yellen said.


FED’s Bullard: Don’t rely on rates to fight crises

The U.S. economy risks a protracted slump if government action fails to counter the credit crisis, but the Federal Reserve should not pin too much hope on monetary policy, a top Fed official said on Tuesday.

"Overreliance on interest rate policy in this environment does little to solve the problems at hand and, in addition, may cause a new and difficult-to-solve inflation problem in the wake of the current turbulence," St Louis Federal Reserve President James Bullard said in prepared remarks.

Bullard is not a voting member of the Fed's interest-rate setting committee this year.


Bank of Japans Shirakawa: Financial markets very strained

Bank of Japan Governor Masaaki Shirakawa said on Wednesday that global financial markets are in a very strained situation.

"To ensure the stability of financial markets, the BOJ will earnestly consider steps other than providing liquidity," Shirakawa told the upper house budget committee.

The BOJ unveiled steps on Tuesday to ease strains in financial markets, including widening the type of collateral it accepts in its market operations, to guard against market turmoil.

At an extraordinary meeting of its policy-setting board, the central bank said it would broaden the range of asset-backed commercial paper eligible for its market operations until the end of April 2009; It kept its key overnight call rate target unchanged at 0.5 %.


Nikkei slipped 1.4 % on global economy worries

Nikkei slipped 1.4 % on global economy worries Japan's Nikkei average shed 1.4 % on Wednesday after making record gains a day earlier, with worry about the global economy and company earnings weighing on the market along with a stronger yen.
Shares of Elpida Memory were overwhelmed with sell orders after the chipmaker said it would post a much bigger loss than expected, while shipping firms tumbled after a key freight index logged a big fall.

Toyota Motor Co and other automakers slid on the gloomy outlook for U.S. car sales. Mazda Motor tumbled nearly 10 % after a report that it has scrapped plans to build a second U.S. factory.

U.S. stocks fell on Tuesday on fears that the global economy may not avert recession, with technology and consumer companies hit hard although losses were offset slightly by betterthan- expected results from Intel after the closing bell.

The benchmark Nikkei shed 136.35 points to 9,311.22 after rising more than 14 % on Tuesday for its biggest one-day gain ever.

Published on  Wed, Oct 15 2008, 06:13 GMT

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U.S. equities rose 11.1 %

Tue, Oct 14 2008, 06:35 GMT
by Jyske Bank Team

Jyske Bank


  • Euro rose after EU guarantees

  • U.S. to inject USD 250 billion into banks

  • Nikkei up 13 % in morning trade

  • The yen fell over 1 %

Today’s main events:

  • GBP Consumer Price Index

  • DEM ZEW Survey

  • EUR Trichet speak in New York


American Time Zone:

Dow Jones up 11.1 %

U.S. stocks rallied, sending the Dow Jones Industrial Average to its biggest point gain ever, on a government plan to buy stakes in banks and a Federal Reserve-led push to flood the global financial system with dollars.
The Standard & Poor's 500 Index rebounded from its worst week in 75 years with its steepest advance since 1987, and the Dow climbed more than 700 points.

Morgan Stanley soared as much as 90 % after sealing a USD 9 billion investment from Japan's Mitsubishi UFJ Financial Group Inc. Bank of America Corp. and Citigroup Inc. jumped more than 8 %, while General Motors Corp. and Ford Motor Co., the largest U.S. automakers, rose more than 20 % each.


EUR rose after EU guarantees

The euro rose the most in three weeks against the dollar and yen after European leaders agreed to guarantee bank borrowing and prevent failures that would further batter the credit markets.
The U.S. currency fell versus the Mexican peso and Australian dollar as the Federal Reserve and three other central banks announced unlimited dollar auctions, reducing demand for the greenback for funding among financial firms.


Oil higher

Crude oil rose, rebounding from last week's 17 % plunge, as governments in the U.S. and Europe acted to stem the worst financial crisis since the 1930s.


Far East Time Zone:

U.S. to inject USD 250 billion into banks

The U.S. government agreed on Monday to take USD 25 billion stakes in several big banks in a bid to shore up the banking system and arrest the financial crisis, sources familiar with the situation said. The move follows pledges by the governments of Britain, Germany, France and other European countries of more than 1 trillion euro (USD 1.36 trillion) to bolster their own banks.

U.S. officials will announce details of the U.S. plan at 8:30 a.m. (1230 GMT) on Tuesday, the Treasury Department said.

After talks with Wall Street bankers on Monday, Treasury Secretary Henry Paulson agreed to spend USD 250 billion on equity stakes in U.S. banks and to a three-year guarantee of bank-tobank lending, sources familiar with the meeting said.

The government would take USD 25 billion in preferred stock in Bank of America, Wells Fargo, Citigroup , JPMorgan Chase, Goldman Sachs , Morgan Stanley and Bank of New York , the sources said.

All except Bank of America would have to raise USD 10 billion in matching capital to qualify, a source said.


Nikkei up 13 % in morning trade

Japanese share prices soared on Tuesday, buoyed by international government pledges to pour cash into banks and restore confidence in the global financial system.

Japan also unveiled steps to stabilise its financial markets, including a possible injection of public funds into regional banks that the government said would be aimed at enhancing smooth financing for smaller firms facing a possible credit crunch.

Tokyo's Nikkei share surged 13.04 % by midday, encouraged by gains on Wall Street and in Europe and more than making up for Friday's slide, which was its worst one-day loss since the 1987 stock market crash.

The Nikkei ended the morning up 1,079.13 points at 9,355.56 after rising 13.76 % earlier. That compared to the 13.24 % leap logged on Oct. 2, 1990, which was the benchmark's biggest one-day gain since 1945.

The broader Topix rose 12.7 % to 947.47, a gain of more than 100 points.


The yen fell over 1 %

The yen fell over 1 % against the euro on Tuesday, after European governments unveiled plans the previous day to recapitalise their banking systems, raising hopes for an easing of the credit crisis.

The euro rallied 1.3 % from late U.S. trading on Monday to 140.34 yen, having rebounded off a three-year low of 132.15 yen hit on trading platform EBS on Friday.

Earlier, it rose to as high as 141.00 yen.
Against the dollar, the euro rose around 0.5 % to USD 1.3643.

The dollar climbed 0.8 % from late New York to 102.80 yen, having come off a six-month low of 97.91 yen hit on Friday. In addition to the bank bailouts, the U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank have said they would lend commercial banks as much U.S. dollar liquidity they needed

Published on  Tue, Oct 14 2008, 06:35 GMT

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U.S. stocks fell for an eight straight day

Mon, Oct 13 2008, 05:47 GMT
by Jyske Bank Team

Jyske Bank


  • Euro zone agrees to an emergency rescue plan

  • Australia & New Zealand guarantees bank deposits

  • British banks set for 40 billion GBP rescue

  • Oil rises over USD 3 to top USD 80 a barrel

Today’s main events:

  • FRF Current Account

  • GBP Producer Price Index


American Time Zone:

U.S. stocks fell for an eight straight day

U.S. stocks fell for an eighth straight day in a whipsaw session that sent the Dow Jones Industrial Average to its biggest point swing ever.
The Standard & Poor's 500 Index capped its worst week since 1933, as concern that the financial crisis will send the global economy into a recession pushed Morgan Stanley, CBS Corp. and Exxon Mobil Corp. down more than 8 %. The Dow recovered from a 697 point tumble and rose as much as 322 points in the last hour after an industry group said the bankruptcy auction of Lehman Brothers Holdings Inc.'s debt won't worsen credit losses.
“At this point, investors are just focusing on getting through the day,” said Alan Gayle, the Richmond, Virginia-based senior strategist at Ridgeworth Investments, which oversees about USD 70 billion. “The markets are being driven by emotion and rumour”.


Yen higher as turmoil continued

The yen rose against the euro and headed for its biggest weekly gain in a decade against the dollar as a global stock rout prompted investors to sell higher-yielding assets and pay back low-cost loans in Japan.


Crude oil below USD 80

Crude oil fell below USD 80 for the first time in a year and copper headed for its biggest weekly drop in more than 20 years on concern that the deepening financial crisis will push the global economy into a recession.


Far East Time Zone:

Euro zone agrees to an emergency rescue plan

Euro zone leaders have agreed on an emergency package to guarantee financial debt for five years and take a direct stake in banks if necessary to “avoid any failure of systemically relevant institutions”.

The fifteen states will also prop up the interbank markets to kick-start lending.

The accord falls short of calls for a pan-EU rescue fund to shore up the banks after the near total seizure of the credit markets last week, and may not prove enough to stem the collapse of investor confidence.

But it is the first clear signal that Europe’s leaders are facing up to the full gravity of a crisis that threatens to engulf everybody.

French President Nicolas Sarkozy said Germany, France and Italy would all come forward with national plans in time to soothe the markets on Monday. “None of our countries acting alone can end this crisis.

German officials have been scrambling all weekend to put together a EUR 400bn (GBP 317bn) rescue package for the country’s banks and insurance companies, fearing that any delay at this stage could set off a full-fledged crash. Frankfurt’s DAX index fell by 25% last week in the worst five-day slide in modern history.

The draft German plan includes some EUR 300 billion in guarantees to unlock the interbank lending markets, and a fund of up to EUR 100 billion to recapitalize banks.

   

Australia and New Zealand guarantees bank deposits to combat crises

Australia and New Zealand gave a blanket guarantee to all bank deposits on Sunday in a move likely to raise pressure on other economies to do the same, amid a crisis of confidence in the global financial system.

The two neighbors, both dominated by Australia's four major lenders, had portrayed themselves as having strong bank systems, especially Australia whose government and regulators gave repeated assurances it was well placed to weather the storm.

But Australian Prime Minister Kevin Rudd called a snap news conference on Sunday to say his government would guarantee Australia's entire deposit base of AUS 600- AUD 700 billion (USD 386-USD 450 billion) for three years and guarantee wholesale bank funding.

"We are in the economic equivalent of a national security crisis, and the challenges are great," Rudd said.
He referred to recent moves by other economies, such as Britain, Germany and Ireland, to extend guarantees or state aid to their banking systems and said Australianbanks could be disadvantaged if his government failed to act.


British banks set for 40 billion GBP rescue

Britain could pump more than 40 billion pounds (USD 69 billion) into four troubled major banks and take big stakes as part of a recapitalization due to be unveiled on Monday, sources familiar with the situation said.

Royal Bank of Scotland, HBOS, Lloyds TSB and Barclays were in line to receive the billions of pounds from investors and taxpayers in a bid to rescue them from the impact of the global credit crisis, said the sources, declining to be named.

The move could result in the government becoming the biggest shareholder, and even a majority investor, in Royal Bank of Scotland and HBOS -- effectively partly nationalizing two of Britain's biggest banks.

Talks among the banks, government officials and regulators were due to go on through the early hours of Monday to determine how much each would need from the 50 billion pounds offered by the government last week to offset the global credit crunch.

An announcement was expected before markets open on Monday, but details were still being fine-tuned, said the sources.


Oil rises over USD 3 to top USD 80 a barrel

Oil rose over USD 3 to top USD 80 a barrel on Monday, recouping some of previous session's 10 % loss, in a relief rally as leaders in the United States and euro zone took steps to pull the banking sector away from a deeper collapse.
U.S crude for November delivery was up USD 2.53 at USD 80.23 a barrel, after rising by as much as USD 3.07 or about 4 % at the start of electronic trading.

Published on  Mon, Oct 13 2008, 05:47 GMT

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U.S Stocks slide

Fri, Oct 10 2008, 07:24 GMT
by Jyske Bank Team

Jyske Bank


  • Oil declined

  • Yen soars as stocks plunge

Today’s main events:

  • NOK CPI

  • USD Trade balance

  • CAD Trade balance & unemployment


American Time Zone:

U.S. stocks slide

U.S. stocks slide and the Dow Jones Industrial Average fell below 9,000 for the first time since 2003 as higher borrowing costs and slower consumer spending spurred concern carmakers, insurers and energy companies will be the next victims of the credit crisis.
General Motors Corp. tumbled 31 % and Ford Motor Co. slumped 22 % as the outlook for car sales worsened. XL Capital Ltd. lost 54 % and led a gauge of insurers to a 13-year low on concern investment losses will curb results.
Exxon Mobil Corp.'s biggest drop in 21 years accelerated the Dow's decline in the final hour of trading as oil retreated below USD 85 a barrel. Morgan Stanley plunged 26 % as short sellers returned to the market after a threeweek ban.


JPY fell but recovered as stocks collapsed

The yen initially fell against the euro amid speculation a U.S. government plan to buy stakes in banks within weeks will revive investors demand for higher-yielding assets funded in Japan. However the JPY recovered during the trading session as US stocks once again turned lower and fell Sharply during the last 30 minutes of trading.


Oil declined

Crude oil fell more than USD 2 a barrel as concern that fuel demand will drop if a global recession develops outweighed signs that OPEC may curb output.


Far East Time Zone:

Stocks drop as panic sparks scramble for cash

Asian stocks plunged on Friday, with Japan's Nikkei down more than 10 %, while the yen and U.S. Treasuries rose, as panic ripped through markets and investors shrugged off efforts so far to unlock credit markets.
A synchronised cut in borrowing costs by central banks around the world this week is seen as too little, too late, and investors doubt a meeting of the Group of Seven rich nations later on Friday can achieve much, with fears growing that the global economy is shifting towards recession.


Yen soars as stocks plunge, crisis panic worsens

The safe-haven yen jumped on Friday, hitting a three-year high against the euro as the panic mode gripping investors deepened on fears that the global financial system is faltering.
The yen backed off the highs of the day as the Nikkei's trimmed some of its heavy losses but was still down 8 %.
Another worry for investors was that Japanese markets would be closed for a holiday on Monday, while in the United States bond markets will be closed for Columbus Day even as stock markets are still open.
That prompted some investors to dump positions to keep any risk off of their books, traders said.
The euro slid to a three-year low of 132.80 yen before trimming losses to 135.00 yen, down about 0.6 % from late U.S. trade.


Singapore in recession, first policy easing in 5 yrs

Singapore eased monetary policy on Friday for the first time since 2003 after the Southeast Asian economy sunk into its first recession in six years and as the meltdown in financial markets threatened to further hit growth.
Singapore's export-dependent economy shrank an annualised and seasonally adjusted 6.3 % in the July-September quarter, advance government estimates showed, compared to the 1.1 % growth forecast by economists in a Reuters poll.


Oil slump deepens to over USD 4 on demand fears

U.S. crude oil futures tumbled by more than USD 4 a barrel on Friday, extending losses to fresh one-year lows, as traders feared the credit crisis would send the global economy into recession and hurt fuel demand.
By 0227 GMT, U.S. light, sweet crude for November delivery fell USD 4.26 to USD 82.33 a barrel, having earlier fallen to USD 82.10 a barrel.

Published on  Fri, Oct 10 2008, 07:24 GMT

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U.S. stocks fell for a sixth day

Thu, Oct 9 2008, 07:07 GMT
by Jyske Bank Team

Jyske Bank


  • Rate cuts didn’t convince the market

  • U.S. may take ownership stake in banks

  • Nikkei up 1.3 % on hopes for more steps

Today’s main events:

  • DEM Trade Balance & Current Account

  • SEK Consumer Price Index

  • USD Initial Jobless Claims


American Time Zone:

U.S. stocks fell for a sixth day

U.S. stocks fell for a sixth day after Treasury Secretary Henry Paulson said more banks may fail and unprecedented global interest-rate cuts failed to convince investors the economy will avoid a recession.

Bank of America Corp. slumped 7.7 % after selling shares at a discount to shore up capital. Alcoa Inc., the largest U.S. aluminium producer, slid 13 % as a reduction in manufacturing caused by the credit crisis left the company with earnings that trailed analyst estimates.

Russia, Indonesia, Ukraine and Romania shut their exchanges and Brazil's benchmark index fell to the lowest level in two years in the worst week for emerging markets in at least two decades.


Rate cuts didn’t convince markets

The dollar declined the most against the euro in more than two weeks as global central banks made coordinated reductions in borrowing costs, reducing demand for the U.S. currency as a haven from credit market turmoil.

However, the yen rose to a three-year high against the euro and gained versus the dollar on concern the interest-rate cuts may fail to boost confidence, encouraging the sale of higheryielding assets.


Oil price at 10 month low

Crude oil fell to the lowest in 10 months after the U.S. government reported a bigger-thanexpected gain in crude and gasoline inventories as the global economic crisis curbed demand.


Far East Time Zone:

U.S. may take ownership stake in banks

Having tried without success to unlock frozen credit markets, the Treasury Department is considering taking ownership stakes in many United States banks to try to restore confidence in the financial system, according to government officials.


Nikkei up 1.3 % on hopes for more steps

The Nikkei average rose 1.3 % on Thursday as coordinated worldwide cuts in interest rates sparked hopes that governments might take more action to battle the financial crisis, but gloomy results from retailer Aeon Co weighed on the market.

The benchmark added 115.08 points to end the morning session at 9,318.40. It finished the previous day at 9,203.32, its lowest close since June 2003.

The broader Topix climbed 1.8 % to 915.49.


Japan machinery orders dive as recession looms

Japan's core private-sector machinery orders tumbled 14.5 % in August, four times more than expected, in a bad sign for capital spending as the nation's economy spirals toward a recession.

A day after the Nikkei plunged 9 %, Japanese Prime Minister Taro Aso instructed senior ruling party officials to consider a new emergency package to cope with the global financial uncertainty, Kyodo news agency reported.

The early snapshot of corporate outlays comes on mounting fears that the deepening turmoil could deal a serious blow to the world economy, hit Japanese exports and further weaken corporate activity.

USDJPY traded between 98.90 and 100.74.


Oil price fell below USD 88 on downturn fears

Oil slid by more than a dollar to below USD 88 a barrel on Thursday, as a series of bold rescue moves by policy makers around the world failed to lift fears the global economy was heading for a meltdown.

A much larger than expected rise in U.S. crude and gasoline inventories underlined worries that the economic crisis would hit oil demand, a concern that has sent crude tumbling about USD 60 a barrel from its record high above USD 147 in July.

U.S. light crude for November delivery fell USD 1.13 to USD 87.82 a barrel. On Wednesday oil hit a 10-month low of USD 86.05, but pared some of those losses during the session.

London Brent crude fell 88 cents to 83.48 a barrel.

Published on  Thu, Oct 9 2008, 07:07 GMT

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Dow Jones down 5.1 %

Wed, Oct 8 2008, 06:43 GMT
by Jyske Bank Team

Jyske Bank


  • Bernanke signalled rate cut

  • Room for lower interest rates in Europe

  • Australia central bank expands support for banks

Today’s main events:

  • DEM Industrial Production

  • USD MBA Mortgage Applications

  • USD FED’s Charles Plosser speaks


American Time Zone:

Dow Jones down 5.1 %

U.S. stocks fell, sending the Standard & Poor's 500 Index below 1,000 for the first time since 2003, on speculation banks and real-estate companies are running short of money as the credit crisis worsens.


Bernanke signalled rate cut

The yen dropped from near a three-year high against the euro as the Federal Reserve's announcement that it will buy commercial paper encouraged investors to resume buying higher-yielding assets funded in Japan.
The dollar fell from a 14-month high versus the euro on speculation the Fed's plan will ease demand for U.S. currency funding among banks. The dollar erased its gain versus the yen as Fed Chairman Ben S. Bernanke signalled policy makers are ready to lower interest rates as the credit freeze worsens the outlook for U.S. economic growth.


Oil higher on OPEC speculation

Crude oil rose, halting a 13 % decline in the past four days, amid speculation OPEC will curb output because of falling prices.


Far East Time Zone:

Room for lower interest rates in Europe

The head of the International Monetary Fund, Dominique Strauss-Kahn, said on Tuesday there was room for lower interest rates in Europe, as pressure increases for a coordinated global response to the financial crisis.

Asked on U.S. public television what kinds of measures should be included in a coordinated plan, Strauss-Kahn replied, "Interest rates is one point and certainly there will be room now for Europeans to have lower interest rates."
But he said while countries were facing a crisis of confidence in global markets, traditional economic policy measures were not always as effective.


Australia central bank expands support for banks

Australia's central bank on Wednesday said it was expanding the liquidity assistance it provides commercial banks in its money market operations, seeking to ease funding pressures from the global credit squeeze.

Just a day after slashing interest rates by an aggressive 1 percentage point, the Reserve Bank of Australia (RBA) said it would accept more types of debt as collateral for loans and would lend to banks for longer periods.
That should help meet banks' demand for longer-term funding which has been hard to get and more costly amid the credit crunch.

China might cut interest rates soon

External and internal conditions are ripe for China to cut interest rates soon to give the economy a lift, an official newspaper said in a front-page commentary on Wednesday.

The central bank unexpectedly allowed the yield at its weekly auction of one-year bills to tumble nearly 10 basis points on Tuesday in what traders saw as a strong sign of an imminent easing of monetary policy.

"Unless something abnormal happens, a rate cut can come at any minute after September headline economic indicators including CPI are released," the China Securities Journal said.

Beijing is scheduled to announce its thirdquarter economic figures on Oct. 21.


Japan MOF: Tension over global economy rising

A senior Japanese Ministry of Finance official said on Wednesday the recent market turmoil is affecting the real economy and overall tension is heightening.

"A number of things have been taking place in the United States and Europe recently and they are having an impact on the real economy," the official told reporters.

The official also said Japanese financial institutions are relatively unscathed in the current financial crisis.

Published on  Wed, Oct 8 2008, 06:43 GMT

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U.S. equities dropped

Tue, Oct 7 2008, 06:34 GMT
by Jyske Bank Team

Jyske Bank


  • Stronger dollar

  • Bank of Japan may signal ready to join G7 action

  • Nikkei hit 5-year low below 10,000

  • Reserve Bank of Australia cut cash rate by 100 bp

Today’s main events:

  • NOK Industrial Production

  • DEM Factory Orders

  • EUR ECB’s Trichet speaks

  • USD Minutes of September 16th FOMC Meeting

  • USD ABC Consumer Confidence


American Time Zone:

U.S. equities dropped

U.S. stocks dropped, driving the Dow Jones Industrial Average below 10,000 for the first time in four years, after bank bailouts in Europe widened and commodities producers slid on concern global growth is slowing.

Equities fell worldwide, erasing more than USD 2 trillion in market value. Bank of America Corp. and Merrill Lynch & Co. fell more than 6 % after the German government led a bailout of Hypo Real Estate Holding AG and BNP Paribas SA bought parts of Fortis, Belgium's largest financial-services company.
Chevron Corp. declined more than 3 % as oil traded below USD 90 a barrel. The Dow jumped 430 points from its intraday low on speculation the Federal Reserve will cut interest rates to unfreeze credit markets.

Stronger dollar

Dollar gained again on global deleveraging, despite the plunge in US equity markets. Buck likely to continue making new highs vs. EUR and GBP this week.
Dollar/yen fell along with lower US equities, and yen is likely to remain firm as long as the current turmoil persists.

Biggest (and only) winner against USD on the day was JPY, while biggest losers were ISK, AUD, KRW, BRL, and TRY. EM and high yielder currencies remain under pressure, and this is likely to continue through Q4 due to heightened global growth risks and risk aversion. Commodities were broadly lower on the day, weighing on the commodity currencies.
USD/MXN made new record high at 12.00. Most EM currencies ended off the lows, but outlook remains poor.


Far East Time Zone:

Bank of Japan may signal ready to join G7 action

The Bank of Japan may signal on Tuesday whether it sees a need for further major central bank action on the global financial crisis, and there is speculation it could even cut a secondary interest rate to spur bank lending.

Speculation that the Group of Seven rich nations would agree on a coordinated response, including rate cuts, to the financial turmoil reached fever pitch on Monday and helped Wall Street erase some of its biggest intraday losses on record.

The BOJ finishes a two-day policy review on Tuesday and is expected to keep interest rates on hold at 0.5 %, with core inflation at a decade high.

But there is speculation in the bond market that it could cut the rate at which it lends to commercial banks, in the face of the crisis that has shaken lenders from New York to Hong Kong.

Bank failures in the United States and Europe are shattering confidence in Japan's export markets, accelerating an economic slump that already bears the hallmarks of a recession.


Nikkei hit 5-year low below 10,000

Fears surrounding the global financial crisis drove Japan's Nikkei stock average down more than 5 % on Tuesday to a fiveyear low below 10,000, before some bargain hunters emerged to erase some of the losses.

A stronger yen, holding near a six-month high against the dollar hit on Monday, hurt exporters such as Canon Inc and automakers, whose earnings have been badly undercut by the worsening economy overseas.

At 0109 GMT the benchmark was down 3.5 % at 10,106.16. The broader was down 3.8 % at 961.33.

A sense that the shares had now become cheap prompted some light bargainhunting that lifted the Nikkei from a low of 9916.21, it’s lowest since December 2003.


Reserve Bank of Australia cuts cash rate 100 basis point to 6.00 %

Australia's central bank cut its benchmark cash rate 100 basis points to 6.0 percent on Tuesday, a greater-than-expected cut as turmoil in global markets clouded the economic outlook while tightening financial conditions.
The Reserve Bank of Australia's (RBA) easing, announced following its monthly policy meeting, was the second in as many months, and the first move of that magnitude since December, 1994.

AUD/USD fell from 0.7200 to 0.7000 after the rate announcement.

Published on  Tue, Oct 7 2008, 06:34 GMT

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U.S. equities fell

Mon, Oct 6 2008, 06:59 GMT
by Jyske Bank Team

Jyske Bank


  • Stronger dollar

  • BNP clinches Fortis’ Belgian bank arm

  • Danish government guarantee all bank deposits in Denmark

  • Iceland in talks to prevent bank meltdown

Today’s main events:

  • GBP HBOS House prices

  • CAD Building Permits

  • USD FED’s Charles Evans speaks


American Time Zone:

U.S. equities fell

U.S. stocks dropped and the Dow Jones Industrial Average erased a 313-point rally on concern passage of the government's USD 700 billion bank bailout won't unlock credit markets or prevent a recession.

JPMorgan Chase & Co., the biggest U.S. bank by deposits, CB Richard Ellis Group Inc., the largest commercial real-estate brokerage and Lennar Corp., the second-biggest homebuilder, fell more than 6 %. Citigroup Inc. dropped 19 %, its steepest plunge since July 2002, after Wachovia Corp. agreed to be acquired by Wells Fargo & Co., snubbing a previous plan to sell its banking operations to Citigroup.


Stronger dollar

The dollar continued its rally against the euro on Friday after a report showed the unemployment rate remained steady in September, even while U.S. employers shed jobs.
U.S. employers cut payrolls at the steepest rate in 5-1/2 years last month, according to a Labor Department report, slashing an unexpectedly large 159,000 nonfarm jobs as employment contracted for a ninth straight month.

The report added to the optimism surrounding the dollar which was already on track for its best weekly gain versus the euro in the single currency's lifetime after the European Central Bank opened the door to rate cuts on Thursday.


Far East Time Zone:

BNP clinches Fortis’ Belgian bank arm

BNP Paribas took control of the Belgian and Luxembourg businesses of troubled financial group Fortis on Sunday in a complex rescue that will make Belgium the French bank's biggest shareholder.

The deal was the most spectacular crossborder rescue since the U.S.-born credit crisis swept into Europe last month, upending banks and rattling savers' confidence.

Under a share swap announced by Belgian Prime Minister Yves Leterme and BNP Paribas chief executive Baudouin Prot at a late night news conference, BNP will get 75 % of Fortis Bank Belgium and all the group's Belgian insurance operations.

In exchange, Belgium will receive an 11.7 % stake in BNP through the issue of new shares worth 8.25 billion Euros.
BNP also agreed to buy 66 % of Fortis Bank Luxembourg in exchange for a smaller stake for the Luxembourg state.


Danish government guarantee all bank deposits in Denmark

The Danish government early on Monday guaranteed all bank deposits in Denmark as part of a deal with banks to set up a 35 billion Danish crown (USD 6.50 billion) liquidation fund.
Until now, deposits in Danish banks had been guaranteed up to 300,000 crowns.

In return for the government guarantee, banks agreed to pay up to 35 billion crowns over two years in a liquidation fund that could take over distressed institutions to avoid losses to depositors and certain creditors.

"Practically, the Danish state has sold insurance to the financial sector," Lene Espersen, the minister for economic and business affairs, said at a news conference shortly after midnight. "The sector pays a deductible of 10 billion crowns and a premium of 15 billion crowns over two years, which can be increased by another 10 billion crowns if necessary."

Espersen said the fund amounted to 2 % of Denmark's gross domestic product. The deal can be prolonged after two years, if necessary.


Iceland in talks to prevent bank meltdown

Iceland’s prime minister and central bankers were holding emergency talks with pension funds and banks on Sunday as the country looked overseas for funding to shore up its crisis-ridden financial system.

Pension funds were being urged to repatriate foreign assets, while the Central Bank was looking to bolster its foreign exchange reserves. The government may on Monday announce plans for several billion euro to be injected into the Central Bank, people with knowledge of the talks said, although others warned there was no certainty that a deal would be reached or that it would be sufficient to reassure nervous markets.


Germany agrees bank rescue and guarantees savings

Germany acted to stem turmoil in its financial sector on Sunday, thrashing out a new rescue for imperilled lender Hypo Real Estate and, in a surprise move, pledging to guarantee private savings accounts.

After German banks and insurers shocked the government on Saturday by withdrawing support for a government-led 35 billion euro (USD 48.50 billion) rescue for HRE, Berlin scrambled to hammer out a new deal before markets opened on Monday.

Under an accord, struck just after 11 p.m. (2100 GMT), the financial sector agreed to provide an extra 15 billion euro (USD 20.8 billion) in liquidity for HRE on top of the 35 billion they had already committed together with the Bundesbank, the Finance Ministry said.

Earlier, the government said it had agreed to guarantee private deposits to help restore confidence amid the worst financial crisis since the 1930s.

The change in approach reflected the fastmoving nature of the crisis, which spread across the Atlantic much quicker than many leaders in Europe had anticipated.

The Finance Ministry said the guarantee would cover more than 500 billion euro in deposits.


Euro fell to 13-month low versus the dollar

The euro fell to a 13-month low against the dollar on Monday as investors shifted their focus to banking problems in Europe after leaders of Europe's four biggest economies decided against a coordinated bank bailout.

German and French officials denied on Sunday that they were set to endorse a common fund to bail out European banks.
The comments came after a meeting in Paris on Saturday of leaders of France, Germany, Italy and Britain who issued a joint statement that made no mention of a fund.

The euro was down 0.9 % at USD 1.3640, after plumbing a 13-month trough of USD 1.3610 in early Asian trade on Monday.

The dollar index, which tracks the dollar's value against a basket of six currencies, rose to a 13-month high of 81.159


Global markets

Asian stocks fell 2-3 % on Monday, led by shares of exporters, after a hectic weekend in Europe as the financial crisis gathered steam there, knocking the euro to the lowest in a year.

Concerns about whether the USD 700 billion rescue plan, which was approved by the U.S. Congress last week, would be quickly implemented and whether it would be enough to shore up the economy left investors seeking safety in U.S. and Japanese government bonds and buying yen and Swiss francs.

Oil prices fell around USD 2 to just below USD 92 a barrel, dragging down prices of metals and grains, on expectations damage from dysfunctional financial systems in developed economies would almost certainly push them closer to recessions.

Japan's Nikkei share average fell 3.6 % to the lowest since October 2004. Sectors that derive their revenues mainly from exports, such as electrical equipment, machinery and auto makers, led the index lower.

Published on  Mon, Oct 6 2008, 06:59 GMT

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U.S. stocks dropped

Fri, Oct 3 2008, 06:05 GMT
by Jyske Bank Team

Jyske Bank


  • EURUSD at 13 month low

  • Oil lower as USD rise

  • Dollar poised for biggest weekly gain in 16 years

Today’s main events:

  • EUR: Retail sales

  • USD: Non-farm payrolls

  • USD: ISM


American Time Zone:

U.S. stocks dropped

U.S. stocks dropped for a second day as a jump in borrowing costs and reports showing a worsening economy spurred concern that the government's USD 700 billion bank bailout plan won't be enough to stimulate growth.

Caterpillar Inc., Alcoa Inc. and Deere & Co. tumbled more than 8 percent as three-month bank lending rates climbed to the highest since January, while the government said factory orders declined more than forecast.

General Electric Co. lost 9.7 percent after selling USD 12.2 billion in shares at a discount. Monsanto Co. slid 16 percent, its steepest loss since going public in 2000, after Merrill Lynch & Co. said slumping demand will hurt farm companies. “If banks aren't willing to lend money to a bank, are they going to be willing to lend to an average person? No, they're not,'' said Frank Ingarra, money manager at Hennessy Advisors Inc., which oversees USD 1.1 billion in Novato, California. “We could be at the start of a pretty bad recession.”


EURUSD at 13 month low

The euro fell to a 13-month low against the dollar and the weakest in two years versus the yen after European Central Bank President Jean-Claude Trichet said policy makers discussed cutting interest rates.


Oil lower as USD rise

Crude oil fell more than USD 4 a barrel, as the dollar reached a one-year high against the euro and U.S. fuel demand dropped to the lowest since the last recession.


Far East Time Zone:

Nikkei down 1.4 percent on economy fears

Japan's Nikkei average fell 1.4 percent on Friday to hit its lowest point in more than three years on fears that the global economy will worsen even if the U.S. Congress passes a USD 700 billion bank rescue bill.

Automakers such as Toyota Motor continued their slide after major car companies reported a 26 percent drop in overall U.S. sales for September as the crisis on Wall Street rocked consumer confidence.


Dollar poised for biggest weekly gain in 16 years

The dollar hovered near a one-year peak against a basket of major currencies on Friday as banks and financial institutions have scrambled to buy the U.S. currency on the open market after being locked out of frozen money markets.

The dollar extended gains versus the euro scored the previous day after European Central Bank President Jean-Claude Trichet said inflation risks have eased, bolstering expectations the ECB will follow other major central banks in cutting rates.

So far on the week, the dollar has soared 4.2 percent against a basket of six major currencies, poised for its biggest weekly rise in 16 years.

Published on  Fri, Oct 3 2008, 06:05 GMT

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USD rose for third day

Thu, Oct 2 2008, 06:05 GMT
by Jyske Bank Team

Jyske Bank


  • Oil declined after inventory data

  • Bush urges House to pass bailout bill like Senate

  • Nikkei down

Today’s main events:

  • EUR: Producer prices

  • Rate decision from ECB

  • USD: Jobless claims


American Time Zone:

U.S. stocks fell

U.S. stocks fell as a report showed manufacturing contracted more than forecast and analysts cut earnings estimates on industrial companies, overshadowing Warren Buffett's USD 3 billion investment in General Electric Co. Ingersoll-Rand Co. and Parker Hannifin Corp. slid more than 3.6 % on Citigroup Inc. analysts' prediction that credit losses will delay spending on equipment. GE dropped as much as 9.8 % as Deutsche Bank AG said profit will be hurt by “deterioration” at its financial unit, then trimmed losses on plans to raise USD 15 billion from Buffett and others.
Benchmark indexes pared their declines as Bank of America Corp. and Citigroup climbed more than 8 percent on speculation Congress will approve the USD 700 billion financial-rescue plan.


USD rose for a third day

The dollar advanced against the euro for a third consecutive day as demand for funding in the U.S. currency increased, reflecting banks' reluctance to lend to each other amid a global credit crunch.


Oil declined after inventory data

Crude oil fell after a U.S. government report showed a bigger-than-forecast increase in supplies as fuel consumption dropped to the lowest since 2001.


Far East Time Zone:

Bush urges House to pass bailout bill like Senate

President George W. Bush on Wednesday praised Senate passage of a USD 700 billion package aimed at rescuing the U.S. financial system and urged the U.S. House of Representatives to quickly do the same. "With the improvements the Senate has made, I believe members of both parties in the House can support this legislation," Bush said in a written statement. "The American people expect, and our economy demands, that the House pass this good bill this week and send it to my desk."
“The bill the Senate passed is essential to the financial security of every American," he said.


Nikkei down

Japan's Nikkei stock average slipped 1.1 % on Thursday despite passage of the financial bailout bill by the U.S. Senate, with worries about its fate in the U.S. House and concern about the global economy overpowering relief.

The Senate voted 74-25 for the historic USD 700 billion bailout of the U.S. financial industry, with the results coming out late in morning trade.

But the market reaction was negative. "Basically, there's still a lot of distrust of this bill in the House, so it's hard to know what will happen there," said Katsuhiko Kodama, senior strategist at Toyo Securities. "Even more, if you look at recent indicators for the U.S. and Japan the economy is clearly bad, and investor attention is shifting to the economy. You can't expect a rebound just on the bill passing the Senate."

Published on  Thu, Oct 2 2008, 06:05 GMT

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U.S. Stocks jump

Wed, Oct 1 2008, 07:10 GMT
by Jyske Bank Team

Jyske Bank


  • EUR sharply lower against USD

  • Weak Tankan

  • U.S. Senate to vote on rescue plan

Today’s main events:

  • EUR: Manufacturing PMI

  • USD: ISM Manufacturing

  • USD: Construction Spending


American Time Zone:

U.S. Stocks jump

U.S. stocks jumped the most in six years as growing expectations that lawmakers will salvage a USD 700 billion bank-rescue package helped the Standard & Poor's 500 Index recover more than half of yesterday's 8.8 % plunge. JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. jumped more than 11 % as Senate leaders vowed to resume work on the bailout plan this week after its rejection spurred the market's steepest decline in two decades. Hess Corp. and Schlumberger Ltd. added more than 7 % as optimism about the plan helped oil rebound from a USD 10-a-barrel drop. All 10 industries in the S&P 500 advanced.


EUR sharply lower against USD

The euro fell the most against the dollar since the introduction of the shared currency in 1999 after France and Belgium led a statebacked rescue of Dexia SA, as the widening financial crisis forces governments to prop up financial institutions across Europe.


Oil recovered after Monday

Crude oil rose, rebounding from its biggest drop in seven years, after U.S. lawmakers said they intend to salvage a USD 700 billion bankrescue package that may avert an economic slowdown.


Far East Time Zone:

Weaker than expected Tankan

Business sentiment at big Japanese manufacturers turned negative for the first time in five years, a closely watch Bank of Japan survey showed, as the world's No.2 economy headed towards recession amid a global slowdown and financial market turmoil.

Underlining growing uncertainty over the outlook, the central bank's tankan quarterly corporate survey also showed big manufacturers expect conditions to worsen in the fourth quarter.

The tankan came on top of a recent set of weak reports including exports and industrial output, while a political row over a USD 700 billion U.S. bailout for Wall Street prompted more concerns about the outlook for Japan's export-reliant economy.

Financial markets showed little reaction as they expected a poor reading, while the Nikkei stock average climbed 1.2 % after a Wall Street surge prompted by hopes that Washington will revive a plan to stabilise the U.S. financial sector after its earlier defeat on Capitol Hill.

The headline index for big manufacturers' sentiment stood at minus 3, down from plus 5 in the previous survey in June and below the median market forecast for minus 2.

It was down for the fourth straight quarter and the lowest since June 2003. The index for December was seen at minus 4, suggesting firms expect conditions to worsen over the next three months.


U.S. Senate to vote on rescue plan

The U.S. Senate agreed to vote on Wednesday night on a new version of the USD 700 billion bailout package for Wall Street that will include a big increase in the amount of bank deposits protected by the government's insurance program, a Senate aide said on Tuesday.

Senate Majority Leader Harry Reid, a Nevada Democrat, received unanimous consent from the Senate to schedule the vote on the package, which the White House says is imperative to stem a credit crisis that has spread beyond Wall Street to claim more European banks.

If the bailout package passes in the Senate, as expected, it will put more pressure on the House to follow suit when it meets again on Thursday.


IMF chief: Europe should ready plans

The United States needs to act urgently to shield its economy from an escalating credit crisis and Europe must ready plans in case banking problems spread, the head of the International Monetary Fund said on Tuesday.

"We're right at the moment where action is needed," IMF Managing Director Dominique Strauss-Kahn told Reuters. "A non-perfect plan is better than no plan at all," he said of the USD 700 billion bailout plan rejected by the U.S. House of Representatives on Monday.

As the crisis has spread beyond Wall Street, European countries have stepped up their efforts to avoid bank defaults but the lack of a pan-European regulator makes it more difficult to respond to the crisis, Strauss-Kahn said.

Published on  Wed, Oct 1 2008, 07:10 GMT

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U.S. Stocks plunge

Tue, Sep 30 2008, 08:40 GMT
by Jyske Bank Team

Jyske Bank


  • USD fell after rescue package rejected

  • Oil sharply lower

  • Rejection sends markets reeling

Today’s main events:

  • SEK: Retail Sales

  • NOK: Retail Sales

  • EUR: CPI, ECB’s Trichet speaks

  • USD: Chicago PMI, Consumer Confidence, Pres. Bush speaks


American Time Zone:

U.S. Stocks plunge

U.S. stocks plunged and the Standard & Poor's 500 Index tumbled the most since 1987 after the House of Representatives rejected a USD 700 billion plan to rescue the financial system.

Wachovia Corp. declined 85 % after the bank was sold to Citigroup Inc. in a deal brokered by the Federal Deposit Insurance Corp. Sovereign Bancorp Inc. and National City Corp. sank more than 60 %, leading financial shares in the S&P500 to an 11 % slide. Goldman Sachs Group Inc. and Morgan Stanley, the two largest Wall Street securities firms, fell more than 19 %. The MSCI World Index of 23 developed markets slid 5.9 %, the most since its creation in 1970.


USD fell after rescue package rejected

The dollar fell against the yen as a majority in the House of Representatives voted against the USD 700 billion rescue of the U.S. financial industry. The yen and the Swiss franc gained against all the other major currencies including the Brazilian real and the South African rand as stocks plunged, encouraging investors to sell higher-yielding assets and pay back loans in Japan. The pound had its biggest intraday drop against the dollar in 16 years and the euro fell as European governments bailed out banks.


Oil sharply lower

Crude oil fell the most in almost seven years, down USD 10 from the top of the day, after the U.S. House of Representatives rejected the rescue plan.


Far East Time Zone:

Japan jobless rate hits 2 year high

Japan's jobless rate hit a two-year high while spending and industrial output fell more than expected in August, adding to the gloom for an economy on the brink of a recession amid a global market meltdown.

Economists say production will probably fall for the third straight quarter in July-September due to slowing exports, which was part of the reason Japan logged a trade deficit in August for the first time in 26 years.

Jitters over the U.S. banking system remained the market's focus after U.S. lawmakers' rejection of a USD 700 billion bailout plan. The Nikkei average tracked Wall Street's tumble, sliding nearly 5 %, while shorter Japanese government bonds jumped, shoving yields lower.

Industrial output fell 3.5 % in August from a month earlier, bigger than the 2.9 % drop expected by economists.

Manufacturers' output, the core component of production, is expected to rise 1.6 % in September but fall 0.1 % in October, the data showed.

In a sign that high costs and weak exports were hurting companies' appetite for hiring, the availability of jobs fell to its lowest since September 2004. The seasonally adjusted jobless rate rose to 4.2 % in August from 4.0 % in July, marking the highest level since 4.3 % in June 2006.

Reflecting worsening consumer sentiment as high energy and food costs bite, overall household spending fell 4.0 % in August from a year earlier in price-adjusted real terms, bigger than a market forecast for a 1.3 % drop.


Rejection sends markets reeling

Panic gripped markets after U.S. lawmakers unexpectedly rejected the bailout plan for the financial industry, with Asian stocks opening sharply lower after Wall Street's biggest fall since the crash of 1987.

A week that started badly with the rescue of three banks in Europe followed by the distressed sale of big U.S. lender Wachovia to Citigroup got worse after the U.S. Congress was unable to agree on a rescue package.

Stocks in Asia dropped roughly 4 % on Tuesday amid mounting fears about the health of the global economy, with China's two biggest banks opening more than 8 % lower.

Uncertainty about what comes next, and whether Washington can come up with compromise legislation to relieve the worst financial crisis since the Great Depression before adjourning ahead of the Nov. 4 elections sent investors into safe-haven gold and Treasuries. Oil fell on fears of further economic slowdown.

Investors worried that the collapse in financial markets would tip the United States economy into a painful recession that brings the rest of the world with it.

However, Kansas City Federal Reserve Bank President Thomas Hoenig said that despite a sense that "the sky is falling", the U.S. economy is resilient and will emerge stronger from the current credit crisis.

"We need to take a deep breath and think about what is happening," Hoenig said at a Kansas City Fed economic forum in Gering, Nebraska.

U.S. President George W. Bush huddled with economic advisers, including Federal Reserve Chairman Ben Bernanke, to consider the administration's next move. Bush is scheduled to make a statement on the rescue package at 1245 GMT on Tuesday.

Published on  Tue, Sep 30 2008, 08:40 GMT

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U.S. equity up

Mon, Sep 29 2008, 05:59 GMT
by Jyske Bank Team

Jyske Bank


  • U.S. rescue package

  • Japan retail sales

  • Fortis Bank nationalisation

Today’s main events:

  • USD personal consumption

  • USD personal income

  • EUR consumer sentiment


American Time Zone:

U.S Equity up

U.S. stocks ended mostly higher on Friday as big bank shares staged a late rally on hopes lawmakers would hammer out an agreement on a USD 700 billion financial-sector rescue plan this weekend.
Friday's market gains were in sharp contrast to the rest of the week, which was the worst for the benchmark S&P 500 since May.
Trading volume was light, with most traders glued to the increasingly acrimonious debate in Washington over Treasury's plan to mop up bad mortgage debt from bank balance sheets to get them lending again.
Shares of JPMorgan Chase, up 11% and Bank of America, up nearly 7% ranked among the top gainers in both the Dow and the S&P 500.
The Dow Jones industrial average was up 121.07 points, or 1.10% at 11,143.13. The Standard & Poor's 500 Index was up 4.09 points, or 0.34% at 1,213.27. But the Nasdaq Composite Index was down 3.23 points, or 0.15% at 2,183.34.
The fate of the rescue plan pushed nearly everything else to the background on Friday, including U.S. bank regulators' move to close Washington Mutual late on Thursday, the largest U.S. bank failure in history.


JPY rose as market await US rescue package

The yen rose against the dollar and headed for its biggest weekly gain since May as U.S. lawmakers disagreed over a financial rescue and Washington Mutual Inc. became the nation's biggest bank to collapse.
Japan's currency also strengthened against the euro and the Brazilian real after a group of Republicans opposed to the Treasury's USD 700 billion asset-purchase plan submitted an alternative proposal, prompting investors to reduce holdings of higher-yielding assets funded in Japan.


Oil lower

Crude oil fell, leading energy futures lower, after negotiations over the USD 700 billion financial bailout plan stalled, adding to concern that U.S. economic growth in the world's biggest energy-consuming country will falter.


Far East Time Zone:

Congressional leaders agreed on Sunday to the underpinnings of a deal that will allow the Treasury Dept to buy up to USD 700 billion in troubled securities to soothe global credit markets. The proposal will be sent to Congress later on Monday.
President George W. Bush said in a statement the plan being finalized by Congress provides the tools and funding to protect the U.S. economy from a "system-wide breakdown," and expressed confidence it would be passed quickly. Treasury Secretary Henry Paulson said he was confident the program will be enough to free up jammed financial markets and keep credit flowing.
The dollar rose against the yen and the euro, and US Treasury bond futures slipped on the news.


Japan August Retail Sales

Japanese retail sales rose 0.7 % in August from a year earlier, government data showed on Monday, compared with economists' median forecast for a 0.2 % rise.


Fortis Bank nationalisation

Fortis received a EUR 11.2 billion rescue from Belgium, the Netherlands and Luxembourg after investor confidence in the bank evaporated last week. Fortis dropped 35% last week in Brussels trading on concern the company would struggle to replenish capital depleted by the takeover of ABN Amro Holding NV units and credit writedowns.

Published on  Mon, Sep 29 2008, 05:59 GMT

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U.S. stocks advanced

Fri, Sep 26 2008, 05:14 GMT
by Jyske Bank Team

Jyske Bank


  • U.S. bailout in chaos

  • Washington Mutual is largest U.S. bank failure

  • The dollar weaker against the yen and euro

Today’s main events:

  • NOK Svein Gjedrem speaks

  • USD GDP

  • USD Personal Consumption

  • USD University of Michigan Confidence


American Time Zone:

U.S. stocks advanced
U.S. stocks advanced, led by banks, as Congress neared an agreement on a USD 700 billion bailout of financial institutions to help revive lending and credit markets.
Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc. added as much as 8.4 % after Senate Banking Committee Chairman Christopher Dodd said Republicans and Democrats agreed on a “set of principles” for a financial-rescue package. Nike Inc. gained 9.8 % as the world's largest athletic-shoe maker said earnings fell less than analysts estimated. Bed Bath & Beyond Inc. rose 3.7 % after its forecast beat projections.


USD rose and JPY declined
The dollar rose and the yen dropped the most versus the euro in almost a week as stocks rose on bets Congress will pass a USD 700 billion financial bailout, encouraging traders to buy higher-yielding assets funded by lowcost loans in Japan.


Oil higher
Crude oil and gasoline rose on speculation that Congress will adopt a rescue plan for the U.S. economy, and a report showing that the nation's gasoline supplies dropped to the lowest in 41 years.


Far East Time Zone:

U.S. bailout in chaos
A rescue for the U.S. financial system unravelled on Thursday amid accusations Republican presidential candidate John McCain scuppered the deal, and Washington Mutual was closed by U.S. authorities and its assets sold in America's biggest ever bank failure.

As negotiations over an unprecedented USD 700 billion bailout to restore credit markets degenerated into chaos, the largest U.S.
savings and loan bank was taken over by authorities and its deposits auctioned off. U.S. stock futures fell by more than 1 %.

The third-largest U.S bank JPMorgan Chase & Co said it bought the deposits of Washington Mutual Inc, which has seen its stock price virtually wiped out because of massive amounts of bad mortgages. The government said there would be no impact on WaMu's depositors and customers. JPMorgan said it would be business as usual on Friday morning.


Washington Mutual is largest U.S. bank failure
Washington Mutual Inc was closed by the U.S. government in by far the largest failure of a U.S. bank, and its banking assets were sold to JPMorgan Chase & Co for USD 1.9 billion.

The rescue marks a historic step to clean up a U.S. financial system littered with toxic mortgage debt.

Washington Mutual, the largest U.S. savings and loan, was closed by the federal Office of Thrift Supervision, and the Federal Deposit Insurance Corp was named receiver.
Customers should expect business as usual on Friday, the FDIC said.

The bailout came after the thrift suffered deposit outflows of USD 16.7 billion since Sept. 15, the OTS said.


Dollar weaker against the yen and euro
The dollar fell against the yen and the euro on Friday as a deal to rescue the U.S. financial system stalled, souring hopes for an imminent agreement to resolve the banking crisis.

Negotiations toward a Wall Street bailout fell into disarray late on Thursday after Republican president candidate Sen. John McCain backed a new plan differing markedly from the one that has been under discussion.

Congressional leaders said an agreement could take until the weekend or longer, sending U.S. stock futures down sharply in Asian trading, hurting the dollar.

The dollar fell 0.6 % to 105.81 yen, near day's low, but stayed in a rough range of 105-108 yen this week.

The euro rose 0.4 % to USD 1.4678. Against the yen, the euro dipped 0.2 % to 155.20 yen.

Published on  Fri, Sep 26 2008, 05:14 GMT

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U.S. stocks declined

Thu, Sep 25 2008, 05:33 GMT
by Jyske Bank Team

Jyske Bank


  • Japan August trade balance slipped into deficit

  • Bush warns of serious risks to U.S. economy

  • Global Markets view

Today’s main events:

  • SEK Producer Price Index & Trade Balance

  • USD Durable Goods Orders & Initial Jobless Claims

  • USD New Home Sales


American Time Zone:

U.S. stocks fell for a third day on concern lawmakers will derail a White House plan to bail out banks even as Federal Reserve Chairman Ben S. Bernanke warned of “grave threats” facing the American economy. The Standard & Poor's 500 Index swung between gains and losses more than 40 times as Bernanke fended off congressional criticism of the USD 700 billion rescue proposal and investors weighed the benefits of Warren Buffett's USD 5 billion investments in Goldman Sachs Group Inc. Washington Mutual Inc. tumbled 24 %, Citigroup Inc. sank 5.2 % and Morgan Stanley lost 11 %.


USD near one month low

The dollar traded near a one-month low against the euro on bets congressional scrutiny will delay passage of a USD 700 billion U.S. rescue of financial institutions.
Federal Reserve Chairman Ben S. Bernanke said at a Joint Economic Committee hearing that the U.S. is facing grave threats to financial stability. Home resales fell more than forecast in August, and prices dropped the most on record, an industry report showed.


Oil lower after inventory figures

Crude oil fell after a government report showed that U.S. fuel demand declined to the lowest in almost five years.


Far East Time Zone:

Japan August trade balance slipped into deficit

Japan's trade balance swung into a deficit in August for the first time since January as export growth slowed to a crawl and imports jumped, adding to worries over the world's no.2 economy as it faces recession fears and financial market upheaval.

Excluding the month of January, when Japanese shipments overseas tend to drop on slower factory activity during the New Year holidays, it was the first deficit since 1982, when Japan was reeling from the aftermath of an oil crisis.

Exports edged up 0.3 % from a year earlier, below a median forecast for a 2.4 % rise, while imports jumped 17.3 % against an expected 21.1 % rise.
The trade balance slumped to a deficit of 324 billion yen (USD 3 billion).


Bush warns of serious risks to U.S. economy

President George W. Bush warned on Wednesday that the United States was in the middle of a serious financial crisis that could push the economy into a long-term recession if the government did not act.

In a televised address aimed at persuading the public to support a USD 700 billion financial bailout being negotiated with Congress, Bush said his "natural instinct" was to oppose government intervention in the financial sector, but the financial turmoil called for a different approach.

"I believe companies that make bad decisions should be allowed to go out of business," Bush said. "Under normal circumstances, I would have followed this course. But these are not normal circumstances."

He cited a market that was not functioning properly, a widespread loss of confidence and major financial sectors at risk of shutting down.

More financial distress could lead more banks to fail, the stock market to drop further, businesses to close, job losses and home values to drop, Bush said.


Global Markets view

Asian stocks fell and the U.S. dollar dipped against major currencies on Thursday, pressured by doubts over the U.S. government's proposed USD 700 billion bailout plan and worries about the economic fallout from the crisis.

Gold gained, rising toward Tuesday's sevenweek high, and short-term government debt prices climbed on concerns the U.S. bank rescue may be insufficient to deal with the turmoil.

Crude oil futures held steady near USD 105.70 per barrel.

The euro rose 0.6 % from late U.S. trade to around USD 1.4710-20 while the dollar index, which tracks the currency's performance against six major currencies, dropped 0.5 %. The dollar fell slightly against the yen

Published on  Thu, Sep 25 2008, 05:33 GMT

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U.S. equities fell for a second day

Wed, Sep 24 2008, 06:22 GMT
by Jyske Bank Team

Jyske Bank


  • FBI probing Fannie, Freddie, Lehman & AIG

  • Buffet to invest USD 5 billion in Goldman

  • The yen sagged against a number of currencies

Today’s main events:

  • DEM IFO Business Climate

  • NOK Rate Decision from Norges Bank

  • USD Existing Home Sales


American Time Zone:

U.S. equities fell for a second day

U.S. stocks fell for a second day on concern Congress will hold up a USD 700 billion bank bailout that Federal Reserve Chairman Ben S. Bernanke said is critical to keeping the economy out of recession.
Citigroup Inc. and Bank of America Corp. tumbled more than 3 % after members of the Senate Banking Committee expressed scepticism about Treasury Secretary Henry Paulson's plan. General Electric Co., the world's third-biggest company, retreated 5 % as Merrill Lynch & Co. downgraded the stock on “growing fundamental pressures”.
ConocoPhillips and Newmont Mining Co. slumped more than 2 % as oil retreated following a record advance and gold and copper prices decreased.


USD recovered

The dollar rose against the euro for the first time in five days as crude oil prices declined and traders speculated the dollar's biggest drop since January 2001 yesterday was too big to sustain.
Federal Reserve Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in Senate testimony that failure to pass the U.S. financial bailout would threaten the economy. The dollar fell yesterday on speculation the USD 700 billion rescue will inflate the budget deficit.


Oil declined

Crude oil fell for the first time in a week on scepticism that a U.S. government bailout plan for financial companies will bolster economic growth and fuel consumption.


Far East Time Zone:

FBI probing Fannie, Freddie, Lehman & AIG

The FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc and insurer American International Group Inc and their senior executives for potential mortgage fraud, CNN reported on Tuesday.

The FBI did not provide specifics but said the inquiries were part of a broader probe, CNN said.

The bureau is trying to determine whether anyone in those financial institutions, including their senior executives, had any responsibility for providing "misinformation," CNN reported.

A federal law enforcement official confirmed the FBI is now looking at 26 cases of potential corporate fraud related to the collapse of the U.S. mortgage lending industry.


Buffet to invest USD 5 billion in Goldman

Warren Buffett's Berkshire Hathaway will invest USD 5 billion in Goldman Sachs Group Inc, in a major boost for the Wall Street bank from perhaps the world's best-known investor.

"It's a vote of confidence which is gold plated," said Michael Holland, a money manager at Holland & Co in New York. "You don't get better than this."

Shares of Goldman rose 8.1 % after the announcement, while Standard & Poor's 500 futures gained 15 points. Goldman also announced plans to sell USD 2.5 billion of common stock.


The yen sagged against a number of currencies

The yen sagged against a number of currencies on Wednesday as news of Warren Buffett's Berkshire Hathaway Inc investing USD 5 billion in Goldman Sachs Group Inc sent U.S. equity futures shooting up in after-hours trading, stemming some of the inflow that the Japanese currency had enjoyed when Wall Street fell the previous day.

The yen had gained against the dollar on Tuesday when U.S. stocks slumped on fear that congressional wrangling could delay a proposed USD 700 billion plan to rescue the financial sector, increasing worries about the struggling U.S. economy.

But U.S. financial markets were cut some slack late on Tuesday when it was revealed that Buffett, one of America's most-respected investors, bought a stake in Wall Street's most powerful firm. The news sent S&P futures jumping as high as 23 points.

The yen's losses were limited as equity markets in Asia slumped despite the Goldman news. The Nikkei stock average slipped 1.2 %, with concern over the USD 700 billion rescue plan overriding any lift from Berkshire Hathaway's investment in Goldman.

The dollar was little changed at 105.44 yen after hitting a high of 105.90 yen. The euro advanced to 155.17 yen. The Australian dollar rose to 87.98 yen

Published on  Wed, Sep 24 2008, 06:22 GMT

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U.S. equities tumbled

Tue, Sep 23 2008, 05:23 GMT
by Jyske Bank Team

Jyske Bank


  • The dollar sharply lower

  • Sharp rally in WTI crude oil October contract

  • Dollar weighed by worry of U.S. bailout cost

  • Mitsubishi UFJ buys 20 % stake in Morgan Stanley

Today’s main events:

  • DEM PMI Manufacturing & services

  • EUR PMI Manufacturing & Services

  • USD House Price Index

  • USD Consumer Confidence


American Time Zone:

U.S. equities tumbled
U.S. stocks dropped, led by banks, retailers and technology companies, on speculation the Treasury's plan to buy toxic assets from financial firms will fail to prevent a recession and as a USD 15-a-barrel jump in oil threatened to damp consumer spending. The Standard & Poor's 500 Index lost as much as 3.9 %, erasing almost half of its rally over the previous two days.
Sovereign Bancorp Inc., Marshall & Ilsley Corp. and Washington Mutual Inc. sank more than 20 % on speculation the bank bailout will lower the value of mortgage loans they hold. Apple Inc. and Cisco Systems Inc. dragged down computer stocks on concern slower growth will reduce sales.



USD sharply lower
The dollar weakened the most against the euro since the Euros inception in 1999 to 1.4810 and fell versus the yen on concern a U.S. proposal to buy USD 700 billion of troubled assets from financial firms will deepen the budget deficit.
The U.S. currency weakened for a fourth day against the euro in its longest stretch of decline since June and touched the lowest level this month before reports this week forecast to show decreases in home sales and durable goods orders in August Crude oil prices surged.


Sharp rally in WTI crude oil October contract
Crude oil climbed more than USD 25 to USD 130 a barrel, the biggest gain ever, as the contract expired and the market was caught short. However, the November contract had a more modest rise of USD 6 to close at USD 109.


Far East Time Zone:

Dollar weighed by worry of U.S. bailout cost
The dollar came under pressure on Tuesday on concerns about the cost to finance the U.S. bailout package to shore up its financial system and ease credit crisis.

The USD 700 billion package, which would give sweeping powers to the U.S. Treasury to buy mortgage-related bad debts from financial firms, is awaiting congressional approval which looked set to drag into next week.

In addition to worries about growing U.S. budget deficit, market players were also doubtful of the effectiveness of the package to resolve the financial crisis.

The euro was up 0.3 % at USD 1.4826; near a 1-month high of USD 1.4867 hit on Monday when it staged its biggest one-day gain since its inception in January 1999.
In addition to the weak U.S. fundamentals, the weakness in global equities markets on heightening risk aversion also opened the way for the dollar's drop against the yen, traders said.


Mitsubishi UFJ buys 20 % stake in Morgan Stanley
Morgan Stanley agreed to sell an equity stake of as much as USD 8.5 billion to top Japanese bank Mitsubishi UFJ Financial Group Inc, speeding up its transformation into a commercial bank and improving its survival prospects in turbulent times.

The preliminary investment agreement announced on Monday came a day after Morgan Stanley and archrival Goldman Sachs Group Inc was granted approval to become bank holding companies regulated by the U.S. Federal Reserve. The moves effectively end the investment banking model that dominated Wall Street for more than 20 years.

The deal with Mitsubishi, the world's No. 2 bank by deposits, helped send Morgan Stanley shares soaring as much as 14 %, even as the Securities Broker-Dealer Index fell 9.4 %.

Published on  Tue, Sep 23 2008, 05:23 GMT

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U.S. rescue plan spurs Wall Street rally

Mon, Sep 22 2008, 06:33 GMT
by Jyske Bank Team

Jyske Bank


  •  Crude oil above USD 105 a barrel

  •  South Africa’s Mbeki resigns

  •  The dollar dipped versus yen & euro

Today’s main events:

  •  EUR ECB’s Trichet speaks

  •  USD FED’s Fisher speaksO/N BR


American Time Zone:

U.S. rescue plan spurs Wall Street rally

Sweeping government measures to rescue the financial system and restore confidence in shaky markets spurred a huge relief rally in U.S. stocks on Friday, ending a week that saw the most dramatic reshaping of the financial landscape since the Great Depression.

Led by Treasury Secretary Henry Paulson, officials are working on a solution to take over hundreds of billions of dollars worth of lethal mortgage debt. In another extraordinary action, the U.S. joined the United Kingdom in temporarily banning bets that financial stocks will fall and also said it will use USD 50 billion to back money-market mutual funds.

USD rose after government plan

The dollar rose the most against the yen since April after the U.S. government announced a plan to rescue banks and revive financial markets.
The yen was headed for a weekly drop against the euro on speculation investors will resume carry trades after the U.S.
Treasury and the Federal Reserve proposed cleaning up financial firms' balance sheets.

Crude oil rose

Crude oil rose more than USD 6 to USD 104 on speculation government measures to resolve
the bank crisis may bolster demand for petroleum.

Far East Time Zone:

Crude oil above USD 105 a barrel

Oil extended last week's massive gains and rose above USD 105 a barrel on Monday, on hopes that the U.S. government's USD 700 billion rescue plan would restore stability in the financial system and support global energy demand.

Sweeping government measures to rescue the financial system and restore confidence in shaky markets spurred a huge relief rally across markets on Friday, when oil rose almost 7 % to cap its biggest three-day rally in a decade.

Analysts said that while there was still uncertainty about the workings of the rescue plan, investors were hopeful that the bailout plan would put an end to the recent financial turmoil that has rocked Wall Street.

U.S. light crude for October delivery rose USD 0.60 to USD 105.15 a barrel, rebounding from earlier losses of as much as USD 1.20 which analysts attributed to worries about the workings of the rescue plan.

The contract jumped USD 6.67 to settle at USD 104.55 a barrel on Friday, bringing gains since Wednesday to 14.7 % -- biggest three-day surge since December 1998.


South Africa’s Mbeki resigns

Thabo Mbeki, who presided over South Africa's longest period of economic growth, told the nation on Sunday that he has resigned as head of state, deepening the country's worst political crisis since apartheid.

Mbeki, who took over from Nelson Mandela as president in 1999, agreed on Saturday to accept the ruling ANC's request that he resign before the end of his term next year.

After an interim leadership is formed, Mbeki's rival and African National Congress leader Jacob Zuma is all but certain to become president in the general election in 2009.

The resignation will be effective from a date to be decided by parliament, said Mbeki, looking subdued during his speech.


The dollar dipped versus yen and euro

The dollar fell against the yen and the euro on Monday as investors cautiously awaited details on a USD 700 billion U.S. bailout of bad mortgage debt.

The Bush administration has finalised the rescue package and sent it to Congress, seeking authority to tackle the worst credit crisis since the Great Depression.

In the proposed package, the U.S. government could acquire up to USD 700 billion of home and commercial mortgages and related assets from U.S. banks, after curbing short selling and guaranteeing mutual funds in an effort to stabilise financial markets. U.S. Treasury Secretary Henry Paulson said on Sunday that foreign banks will also be able to unload bad financial assets under the bailout plan aimed at restoring order during a devastating financial crisis.

The dollar fell from late New York trade on Friday to 106.32 yen, dropping from a high of 108.04 hit on trading platform EBS late last week.

The euro rose to USD 1.4534, but fell against the yen to 153.80 yen.
The yen recovered against the dollar following sharp falls late last week after a series of moves by the U.S. government sparked a rally in U.S. financial shares on Friday.

But U.S. stock index futures opened lower on Sunday evening, suggesting U.S. stocks may give back some of Friday's massive rally. That might have prompted investors to buy the yen back in early Asian trade, traders said, despite a 2.3 % gain in the Nikkei share average in early trade.

Published on  Mon, Sep 22 2008, 06:33 GMT

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Stocks ends sharply higher

Fri, Sep 19 2008, 06:10 GMT
by Jyske Bank Team

Jyske Bank


  • USD rose on rumours

  • Asian stocks and U.S. dollar up

  • HSBC walks away from 6.3 bln deal

  • Oil steady at USD 98

Today’s main events:

  • DEM Producer Price Index

  • EUR ECB’s Juergen Stark speaks


American Time Zone:

Stocks end sharply higher

Wall Street rallied in a stunning late-session turnaround Thursday, shooting higher and hurtling the Dow Jones industrials up 400 points following a report that the federal government may create an entity that will take over banks' bad debt.

A report that Treasury Secretary Henry Paulson is considering the formation of an entity like the Resolution Trust Corp. that was set up during the savings and loan crisis of the late 1980s and early 1990s left investors ebullient. Investors hoped a huge federal intervention could help financial institutions jettison bad mortgage debt and stop the drain on capital that has already taken down companies including Bear Stearns Cos. and Lehman Brothers Holdings Inc.

Worries about financial land mines on companies' books have hobbled the world's financial markets and led to the intense volatility in the markets this week.


USD rose on rumours

The dollar rose the most against the yen in a month on speculation the government will create an agency to address turmoil in financial markets.
The yen fell against the high yielders as the prospect of the U.S. Treasury and the Federal Reserve formulating a permanent plan to stem credit market losses encouraged investors to buy higher-yielding assets funded by low-cost loans in Japan.


Oil declined

Crude oil fell after a U.S. Energy Department report showed that natural gas supplies rose more than expected last week.


Far East Time Zone:

Asia stocks, dollar up on hopes for crisis plan

Asian stocks and the U.S. dollar rallied on Friday as U.S. policymakers met to design a broad plan to resolve a crisis that has threatened the global financial system and reshaped the banking industry. Japan's Nikkei share average was up 2.65 %, after plumbing a three-year low on Thursday. Shares of the country's top bank Mitsubishi UFJ Financial leapt 9.2 % after a volatile week.


HSBC walks away from USD 6.3 bln S.Korea bank buy

HSBC the world's second largest bank by market value, said on Friday it dropped a USD billion offer for 51 %of Korea Exchange Bank , blaming the financial market turmoil that has slashed the value of banks and other assets.
"Taking into account all relevant factors including current asset values in world financial markets, HSBC Asia exercised its right to terminate the acquisition agreement with immediate effect," the UK-based bank said in a statement.


Oil steady at USD 98 after dollar jumps on U.S. plan

Oil was little changed at USD 98 a barrel on Friday, supported after two days of gains by growing U.S. and Nigerian supply concerns and a jump in the U.S. dollar as the U.S. government sought a comprehensive solution to the financial crisis.
U.S. light crude for October delivery rose 12 cents to USD 98 a barrel by 0201 GMT, tempting a third day of gains as prices rebounded from a seven-month low of USD 90.51 a barrel on Wednesday

Published on  Fri, Sep 19 2008, 06:10 GMT

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Stocks tumble

Thu, Sep 18 2008, 05:35 GMT
by Jyske Bank Team

Jyske Bank


  • Oil and gold higher

  • U.S. Dollar declined

  • Japan business mood stays gloomy – Reuters Tankan

Today’s main events:

  • GBP Retail Sales

  • USD Initial Claims

  • USD Philly Fed


American Time Zone:

Stocks tumble Wall Street plunged again in a crisis of confidence Wednesday as anxieties about the financial system still ran high after the government's bailout of insurer American International Group Inc. The Dow Jones industrial average dropped about 450 points, and investors seeking the safety of hard assets and government debt sent gold, oil and short-term Treasurys soaring.


USD declined

The dollar weakened against the yen as the USD85 billion bailout of American International Group Inc. failed to boost confidence in credit markets.
Japan's currency gained versus the high yielders on speculation investors will reduce holdings of higher-yielding assets and pay back low-cost loans in Japan. The dollar fell versus the euro as gold surged 11% to USD 866, the most in nine years, and oil prices rebounded.


Oil and gold higher

Crude oil rose more than USD 5 a barrel as investors sought the safety of the commodity on concern that the credit crisis will deepen, leading more financial institutions to fail.
Oil climbed and gold surged as Goldman Sachs Group Inc. and Morgan Stanley plunged the most ever. Prices also advanced after a U.S. government report today showed that crude oil stockpiles dropped the most since May because of disruptions from Hurricane Ike.


Far East Time Zone:

Raw fear slams Asian stocks, 'safe' gold rises

Asian stocks tumbled 3-4 % on Thursday, with emergency actions by central banks and governments around the world failing to ease a financial crisis that has sent investors fleeing to gold and government bonds.
Overnight, No. 2 U.S. investment bank Morgan Stanley and top U.S. savings and loan Washington Mutual were reportedly up for sale, and a source familiar with the matter said Britain's Lloyds TSB agreed to buy rival HBOS reflecting the unstable landscape that has contributed to gold's 18 % surge in the last week.

"Credit fears have now reached a climax. It's presumptuous to assume it would end in one day," said Harushige Kobayashi, head of research department at broker Securities Japan. "The market ignores fundamentals and is now 95 % driven by psychological factors."

Japan's Nikkei share average fell 3 % to a three-year low early on Thursday. Gold prices in the spot market rose 2.5 % to a 1-monthhigh, as frenzied investors sought relatively safe assets.


Japan business mood stays gloomy- Reuters Tankan

Business confidence among Japanese manufacturers remained negative for the fifth month in a row in September and nonmanufacturers' sentiment sank to a nearly five-year low, a Reuters poll showed on Thursday, reflecting widespread gloom as the economy heads into recession.

Economists expect the business mood to sour further as U.S. government efforts to prevent a financial meltdown have failed to stop a slide in global stock markets that dragged Japan's Nikkei average down 3 % on Thursday.
The weak readings mean the BOJ's September tankan survey, due out on Oct. 1, will likely show a worsening of business sentiment from three months before, underscoring views that the central bank will keep interest rates unchanged at 0.5 % until late next year.


Japan, Australia inject funds into money markets

Japan and Australia pumped further USD 17 billion into money markets on Thursday to prevent banks from hoarding cash amid a global crisis of confidence sparked by this week's dramatic Wall Street shake-up.
Overnight, news emerged of takeovers involving No. 2 U.S. investment bank Morgan Stanley, top U.S. savings and loan Washington Mutual and major UK mortgage lender HBOS, reflecting the seismic change in the global financial landscape.

Published on  Thu, Sep 18 2008, 05:35 GMT

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Fed surprised the market

Wed, Sep 17 2008, 05:40 GMT
by Jyske Bank Team

Jyske Bank


  • U.S. bails out insurer AIG with USD 85 bln loan

  • Asian Stocks and oil climb on AIG rescue

  • Australia’s central bank pumps in extra cash

Today’s main events:

  • GBP Minutes from BoE

  • EUR Trade balance

  • USD MBA purchase


American Time Zone:

Wall Street ended higher

Wall Street has ended another tumultuous day with a big gain, partly recovering from its worst sell-off in years after the Federal Reserve said it was keeping interest rates steady. The Fed soothed fears of a worsening financial crisis even as the market waited to learn the fate of troubled insurer AIG.

The Fed signalled that while there are growing strains in the financial markets, it expects its earlier rate cuts and efforts to boost liquidity in the banking sector and help the economy.

The Federal Reserve is considering extending a loan package to AIG, Bloomberg News reported on Tuesday, citing an unidentified person familiar with the negotiations.


PLN rose sharply

PLN rose sharply on back polish Prime Minister Donald Tusk said that Poland's government and central bank have agreed to seek a decision by the European Commission in 2011 to admit the country into the euro zone.


FED surprised the market

The dollar rose against the euro after the Federal Reserve left its target lending rate unchanged at 2 %, saying growth and inflation risks are both significant concerns.

The dollar advanced the most against the yen in more than three weeks on speculation the Federal Reserve will extend a loan to cashstrapped American International Group Inc.


Far East Time Zone:

U.S. bails out insurer AIG with USD 85 bln loan

The U.S. government agreed to rescue insurer American International Group with an USD85 billion loan from the New York Federal Reserve to stave off a bankruptcy that would have thrown world markets back into turmoil. The U.S. Federal Reserve will extend AIG USD 85 billion in exchange for a nearly 80 % stake to bail it out, the Fed said in a statement.


Asia stocks and oil climb on AIG rescue

Asia stocks rebounded and oil extended gains to more than USD 3 a barrel on Wednesday after the Federal Reserve said it would take over American International Group in a dramatic about-face as victims of the financial crisis kept piling up. Japan's Nikkei share average rose 2.1 % after closing at a three-year low on Tuesday. Shares of Japan's top bank Mitsubishi UFJ Financial Group outperformed the broad market, rising 2.3 %.


Barclays to buy some Lehman assets

Barclays Plc agreed to buy bankrupt Lehman Brothers Holdings Inc's North American investment banking and capital markets businesses, its New York headquarters and two data centers for a total of about USD 1.75 billion.
The deal, announced late on Tuesday, would unite two big debt trading houses and could stanch the flow of customers fleeing Lehman in the wake of the largest bankruptcy in U.S. history.
The Lehman Brothers operations being acquired by Barclays include its North American fixed income and equities sales, trading and research, and investment banking businesses. Lehman will receive USD 250 million (140 million pounds) in cash for these businesses.
Barclays also agreed to buy the investment bank's New York head office in Manhattan and two data centers in New Jersey for close to their current market value, estimated at USD 1.5 billion (800 million pounds).


Australia's central bank pumps in extra cash

Australia's central bank added extra cash to the banking system for a third day on Wednesday seeking to ease funding pressures amid an ongoing global credit squeeze.
In its regular daily money market operation, the Reserve Bank of Australia (RBA) added a total AUSD 4.285 billion (USD 3.4 billion) in cash. That was nearly twice the market's estimated cash need of AUSD 2.18 billion, implying that commercial banks' cash balances with the central bank would expand.

Published on  Wed, Sep 17 2008, 05:40 GMT

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US Stocks and Asian Stocks fell big time

Tue, Sep 16 2008, 05:40 GMT
by Jyske Bank Team

Jyske Bank


  • Oil hits 7-month lows

  • BoJ injects cash

Today’s main events:

  • USD FOMC meeting

  • GBP Concumer Pirce Index

  • DEM ZEW Indicators

  • EUR Consumer Price Index

  • USD Consumer Price Index


American Time Zone:

U.S. stock fell more than 4%

Stocks plummeted and Treasury bond prices soared Monday as investors reacted to a stunning reshaping of the landscape of Wall Street that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co. The major indexes fell more than 4 %.


Sharp moves on the FX market

The yen strengthened the most against the dollar since 1999 after Lehman Brothers Holdings Inc. filed for bankruptcy, prompting traders to sell higher-yielding assets financed by loans in Japan.
Japan's yen and the Swiss franc gained versus every other major currency as the Wall Street firm's collapse encouraged investors to reverse carry trades. The dollar rose against the euro as investors sought the relative safety of U.S. Treasuries, but towards the end of trading the euro gained sharply against the dollar as the drop in US equities accelerated.


Oil at seven month low

Crude oil fell to a seven-month low of USD 94.13 and gasoline tumbled as Lehman Brothers Holdings Inc. filed for bankruptcy and refineries along the Gulf of Mexico escaped major damage from Hurricane Ike.


Far East Time Zone:

BOJ injects cash, says acts for stable Japan markets

The Bank of Japan injected cash into the Japanese market and said it would strive to maintain stability, as stocks slid and the yen and government bonds soared after U.S. investment bank Lehman Brothers's bankruptcy rocked markets worldwide.
The central bank injected 1.5 trillion yen (USD 14.4 billion), its biggest same-day cash injection in five months, as Prime Minister Yasuo Fukuda called an urgent meeting of his key ministers.


Oil hits 7-month lows on global gloom

Oil prices slumped nearly USD 3 to a sevenmonth low on Tuesday as the collapse of Lehman Brothers ignited fears that the credit crisis may weaken the global economy and further depress energy demand.
Reports that Hurricane Ike caused minor damage to the United States' oil platforms and refineries also weighed on prices, adding to the previous session's more than USD 5 fall and down almost 37 % fall from its peak of over USD 147 in mid-July.
U.S. light crude for October delivery fell USD 2.88 to USD 92.85 a barrel by 0148 GMT. And London Brent crude fell USD 2.84 to USD 91.40 a barrel at 0112 GMT.


Wall St shockwaves hammer Asia stocks

Asian share markets tumbled on Tuesday, with Japanese, Hong Kong and South Korean stocks down 5-6 %, as upheaval on Wall Street fuelled investor uncertainty about a spill over into the region.
Tokyo's Nikkei share average dropped 4.7 % to its lowest this year. The financial sector was hit by a wave of selling. Shares of Japan's top lender Mitsubishi UFJ Financial Group fell 9.8 %, Macquarie Group dropped 7.5 % and led the benchmark Australian index down 2.5 %.


Rating agencies downgrade AIG

The rating on embattled insurance giant American International Group Inc. was slashed by at least two notches by the three top global rating agencies, who also warned more downgrades could follow.
The triple strike jolted the insurer even as it is struggling to find funding sources at a time of global financial tumult which has brought two of the biggest Wall Street investment banks to their knees.
Moody's Investors Service cut AIG's rating to A2 from Aa3, a two-notch downgrade.
Standard & Poor's Ratings Services lowered the rating to A-minus from AA-minus, a threepeg reduction and Fitch Ratings reduced its standing to A from AA-minus, a two notch cut. AIG's ratings are still investment grade, although all three agencies said more downgrades could follow.
The announcements were made during Asia time on Tuesday, hours after New York state officials pieced together a USD 20 billion lifeline which would give the company temporary respite.

Published on  Tue, Sep 16 2008, 05:40 GMT

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Oil drops below USD 100

Mon, Sep 15 2008, 05:55 GMT
by Jyske Bank Team

Jyske Bank


  • Fed to take equities as loan collateral

  • Ten banks commit to USD 70 bln borrowing facility

  • U.S. dollar slides

Today’s main events:

  • EUR Trichet speaks

  • USD Empire State Index

  • USD Industrial Production


American Time Zone:

Most U.S. Stocks Rise

Most U.S. stocks gained as higher gasoline and metal prices lifted commodity producers, overshadowing concern that the government will balk at funding a bailout of Lehman Brothers Holdings Inc.
Valero Energy Corp. and Tesoro Corp., the biggest U.S. refiners, gained more than 6 % as Hurricane Ike's progress toward Texas pushed up gasoline. Zions Bancorporation climbed 11 %, leading an advance in regional banks, after the Salt Lake City-based lender raised USD 250 million by selling shares and said it may seek more. Lehman tumbled 14 %, extending its slide over the past year to 94 %, as the securities firm tried to fend off collapse by searching for a buyer.


Far East Time Zone:

Oil drops to six-month low in Ike aftermath

U.S. oil prices dropped more than USD 2 to a six-month low below USD 99 a barrel on Sunday as dealers bet on a swift recovery of the nation's energy production after Hurricane Ike and the U.S. government loaned oil to two refiners.

The losses add to a steady downtrend in oil prices since mid-July's peak of over USD 147 a barrel amid mounting evidence that high energy costs and a weakening economy are cutting deeply into fuel consumption.
Oil prices fell USD 2.38 to USD 98.80 a barrel by 2150 GMT (1750 eastern time) after falling as low as USD 98.46 -- the lowest since February 26.


U.S. dollar slides as Lehman talks falter

The U.S. dollar slid against the yen and euro in Asian trade on Monday as talks to rescue Lehman Brothers Holdings faltered, fuelling concerns over the stability of the U.S. financial system and sparking talk of a possible rate cut there.

The yen was the major gainer as investors consider it a safe haven, though trade was thin with Japan on holiday. The dollar sank to 106.19 yen, from 107.86 late on Friday, while the euro dropped to 152.01 yen from 153.43.
Barclays Plc which had appeared to be frontrunner to take over Lehman said it had pulled out of the bidding as top bankers and regulators met for a third day to try to resolve the crisis.

Meanwhile, Bank of America was in talks to buy Merrill Lynch and insurance giant AIG was reported to be seeking around USD 15 billion in extra capital to stave off ratings downgrades.


Ten banks commit to USD 70 bln borrowing facility

Ten of the world's biggest banks on Sunday committed to establish a USD 70 billion borrowing facility to bolster worldwide liquidity and reduce volatility in what they called an "extraordinary market environment."
Each bank has committed to fund USD 7 billion for the collateralized facility, and any one of the 10 banks would be permitted to borrow up to one-third of the total facility, the banks said in a joint statement. The financing may grow "as other banks are permitted to join," they said.


Fed to take equities as loan collateral

The U.S. Federal Reserve on Sunday said it would begin accepting equities as collateral for emergency loans for the first time ever, as it laid out a series of steps to calm financial markets and brace for the expected collapse of investment bank Lehman Brothers.
In addition to broadening the collateral it would accept from investment banks for direct Fed loans, it also said it would increase the amount of Treasury securities it auctions on a regular basis under one of its lending programs.

Published on  Mon, Sep 15 2008, 05:55 GMT

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The dollar hit one year high

Fri, Sep 12 2008, 06:14 GMT
by Jyske Bank Team

Jyske Bank


  • Oil price close to USD 100 per barrel

  • Lehman in sale talks as survival questioned

  • Japan 2nd quarter GDP revised down

Today’s main events:

  • EUR Euro zone Industrial Production

  • USD Producer Price Index & Retail Sales

  • USD University of Michigan Confidence


American Time Zone:

U.S. stocks advanced

U.S. stocks advanced as a drop in oil prices spurred a rally in refiners and transportation companies, overpowering an earlier tumble prompted by concern Lehman Brothers Holdings Inc. will collapse. The Standard & Poor's 500 Index rebounded from a 1.7 % retreat as Sunoco Inc. climbed 12 % after the profit margin on fuel refining increased the most in six months. CSX Corp., the thirdlargest U.S. railroad, advanced 11 % and led the S&P500 Transportation Index to its biggest gain in five weeks as crude declined and the carrier raised its 2008 earnings forecast on a “positive outlook”' for the industry. Financial shares rebounded from a 4 % plunge as Lehman entered into talks with potential buyers.


The dollar hit one year high

The dollar rose to a one-year high against the euro on signs global growth is slowing, and the yen strengthened on speculation investors will sell higher-yielding assets funded by loans in Japan.
The yen appreciated to the highest level against the euro since August 2006 as concern Lehman Brothers Holdings Inc. will collapse encouraged investors to pare carry trades.

Oil close to USD 100

Crude oil fell to a low of USD 100.18 and gasoline advanced as Hurricane Ike headed across the Gulf of Mexico for refineries along the Texas coast.


Far East Time Zone:

Lehman in sale talks as survival questioned

Lehman Brothers Holdings Inc was forced into talks about a possible sale after the Wall Street investment bank's shares plunged more than 40 % on Thursday, raising questions about its survival.

Lehman and U.S. officials were in intensive discussions about a number of options, including a complete sale, sources with direct knowledge of the talks said. One of the sources said the firm was resisting government intervention.

The Treasury and Federal Reserve were engaged in the talks, which could be completed as soon as this weekend, a second source said.

The U.S. government is hoping to avoid spending money on a bailout, another person familiar with the situation told Reuters.

Bank of America Corp or Barclays could be suitors, according to various reports. Bank of America, Barclays and Lehman declined to comment.


Japan 2nd quarter GDP revised down

Japan's economy shrank a bit more than initially estimated in the second quarter, underscoring concerns it is slipping into a recession in the face of sluggish exports and slowing capital spending.

The world's second-largest economy logged its first contraction in a year in April-June as it struggles with high raw material costs, and analysts see only a modest rebound, if any, in the third quarter.

The economy contracted 0.7 % in April-June, slightly more than the initial estimate of a 0.6 % decrease but by a smaller margin than economists' median forecast for a 0.8 % fall, revised government data showed on Friday.

That translated into an annualised drop of 3.0 %.

Financial markets did not react much to the revised GDP data, which did little to alter dominant market views that the Bank of Japan will keep interest rates steady at 0.5 % until late next year.

Published on  Fri, Sep 12 2008, 06:14 GMT

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The dollar hit 11 month high versus euro

Thu, Sep 11 2008, 06:08 GMT
by Jyske Bank Team

Jyske Bank


  • Oil price hit 5 month low

  • Australia jobless rate fell to 4.1 %

  • New Zealand Central bank cuts rate by half point

Today’s main events:

  • SEK Unemployment Rate

  • USD Trade Balance & Import Price Index

  • USD Initial Jobless Claims

  • EUR ECB’s Trichet speaks


American Time Zone:

U.S. equities rose

U.S. stocks rose as investors snapped up energy shares trading at their cheapest level in 18 months, while better-than-forecast earnings at FedEx Corp. buoyed industrial companies. Exxon Mobil Corp., ConocoPhillips and Chevron Corp. led oil stocks to the biggest gain in more than a month and helped the Standard & Poor's 500 Index rebound from its steepest drop since February 2007. FedEx Corp. rallied 4.5 % as lower fuel costs helped boost profit at the largest air-cargo carrier.
Texas Instruments Inc., the second-biggest U.S. chipmaker, added 1.3 % after maintaining its third-quarter sales projection.


The dollar hit 11 month high

The dollar rose to an 11-month high against the euro as crude oil fell and Lehman Brothers Holdings Inc.'s plan to sell assets assured investors.
The yen fell against all of the major currencies on bets the Wall Street firm's attempt to shore up capital will encourage traders to buy higher-yielding assets funded by loans in Japan. The euro dropped earlier as the European Commission cut its growth forecast and Luxembourg Finance Minister Jean-Claude Juncker said the currency is overvalued.


Oil hit 5 month low

Oil futures fell to a five-month low in New York following a U.S. government report that showed fuel demand declined and refinery production dropped after Hurricane Gustav shut plants along the Gulf Coast.


Far East Time Zone:

Australia jobless rate fell to 4.1 %

Australian employment rose by more than expected in August while the jobless rate stunned analysts by falling to 4.1 %, pointing to far more resilience in the labour market than anyone had thought.
The Australian dollar firmed while bond futures lost early gains as the market reconsidered expectations for an interest rate cut as early as October.


New Zealand Central bank cuts rate by half point, kiwi tumbled

New Zealand's central bank slashed interest rates by a bigger-than-forecast half a percentage point on Thursday and said it expected to cut rates further to help an economy mired in recession.
The New Zealand dollar tumbled one U.S. cent to 23-month lows after the Reserve Bank of New Zealand cut its official cash rate to 7.5 %, citing tight credit conditions and marked economic slowdown.
NZD/USD traded between 0.6513 and 0.6613.

Published on  Thu, Sep 11 2008, 06:08 GMT

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U.S. stocks tumbled after Lehman news

Wed, Sep 10 2008, 05:49 GMT
by Jyske Bank Team

Jyske Bank


  • OPEC adopts 2007 output target of 28.8 million barrels per day

  • Japan annual wholesales inflation near 27-year high

  • Yen retreated from 13-month high versus euro

Today’s main events:

  • SEK Industrial Production

  • NOK Producer Price Index & Consumer Price Index

  • GBP Trade Balance

  • USD MBA Mortgage Applications


American Time Zone:

U.S. stocks tumbled

U.S. stocks tumbled as a 45 % drop in Lehman Brothers Holdings Inc. shook the banking industry, and oil's plunge to a five-month low pushed energy companies down by the most in six years.
The Standard & Poor's 500 Index slumped 3.4 %, its biggest drop since February 2007, a day after the government's bailout of Fannie Mae and Freddie Mac sparked the biggest rally in a month. Lehman led financial shares to their steepest drop since July after talks to sell a stake to Korea Development Bank broke down. Massey Energy Co., Valero Energy Corp. and Freeport- McMoRan Copper & Gold Inc. fell at least 9 %.


JPY rose while USD declined

The yen rose against all of the other major currencies as a drop in global stocks raised speculation that investors will reduce holdings of higher-yielding assets and pay back loans in Japan.
The dollar fell against the euro for the first time in nine days after talks between Lehman Brothers Holdings Inc. and a potential investor, Korea Development Bank, ended.


Oil fell ahead of OPEC meeting

Crude oil fell to a five-month low as the Saudi Arabian and Venezuelan oil ministers signalled that OPEC will maintain production levels when it meets today in Vienna.


Far East Time Zone:

OPEC adopts 2007 output target of 28.8 million barrels per day

OPEC ministers on Wednesday agreed to change their production ceiling to 28.8 million barrels per day.

"Since the market is over-supplied, the conference agreed to abide by September 2007 production allocations adjusted to include new members Angola and Ecuador and excluding Indonesia and Iraq, totalling 28.8 million barrels per day, levels with which member countries committed to strictly comply," OPEC said in communiqué.

The oil price rose from around USD 102.40 to around USD 104.40 per barrel.


Japan annual wholesale inflation near 27-year high

Japan's annual wholesale inflation held near a 27-year high in August, matching expectations and reinforcing views that high raw material costs are hurting companies as the nation heads into a recession.
The data adds gloom to an already bleak outlook for the world's second-largest economy, whose longest post-war expansion has been a casualty of slowing global growth and high energy prices.

The 7.2 % rise in wholesale prices from a year earlier, as measured by the corporate goods price index (CGPI), followed a revised 7.3 % annual rise for July, which was the highest level since an 8.1 % rise marked in 1981 in the aftermath of the second oil shock.

Accelerating wholesale inflation has hurt many Japanese firms, which have been unable to pass on much of the cost increase to prices of their products given weak consumption.

Government officials say the economy, which shrank in the second quarter at its sharpest rate in seven years, is either heading into a recession or already in one, at least under a Japanese definition of a downturn in the economic cycle.


Yen retreated from 13-month high versus euro on short-covering

The yen retreated from a 13-month high against the euro hit earlier on Wednesday but look set to keep a firm tone against many currencies, as shares slid on fears over the health of Lehman Brothers and the U.S. financial sector.

The low-yielding Japanese currency had gotten a broad lift in early Asian hours as the fall in regional equities prompted investors to unwind riskier carry trades funded by yen.
And while short-covering emerged in morning trade, uncertainty about the health of the fourth-largest Wall Street investment bank, which reports third-quarter results later in the day, was providing support.

But oil bounced back from deep early losses after OPEC formally agreed to return to its 2007 production limit despite expectations that current production targets markets would be maintained.
The decision dented the dollar against the euro and commodities-related currencies like the Australian dollar.

The euro rose 0.5 % from late New York trade to 151.56 yen. Moves were volatile with the single currency jumping as high as 151.90 on trading platform EBS from an earlier low of 150.51 yen, a new 13-month low.

The euro was up 0.2 % at USD 1.4153, staying above an 11-month low of USD 1.4046 hit the previous day.

The dollar index, which measures the greenback's value against six major currencies, was little changed at 79.380, below a one-year peak of 79.844 hit on Monday, according to Reuter’s data.

Published on  Wed, Sep 10 2008, 05:49 GMT

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U.S. equities rose

Tue, Sep 9 2008, 05:32 GMT
by Jyske Bank Team

Jyske Bank


  • The dollar sharply higher

  • Nikkei fell 1.4 % in morning trade

  • Australia retail sales rebound in August

Today’s main events:

  • DEM Trade Balance & Current Account

  • SEK Consumer Price Index

  • USD Pending Home Sales

  • ABC Consumer Confidence


American Time Zone:

U.S. equities rose

U.S. stocks climbed, adding to a rally across Europe and Asia, on speculation the government takeover of Fannie Mae and Freddie Mac will stabilize the global financial system battered by USD 507 billion in credit losses. Citigroup Inc., Wachovia Corp. and Bank of America Corp. added more than 4 % after Treasury Secretary Henry Paulson said the government will provide short-term funding to mortgage lenders Fannie and Freddie. KB Home and D.R. Horton Inc. jumped more than 11 %, sending a gauge of homebuilders to a four-month high. SanDisk Corp. slumped 8 %, leading technology shares lower, after UBS AG cut earnings estimates for the largest maker of memory cards used in digital cameras.


USD sharply higher

The dollar rose to the highest since October of 1.4055 against the euro as the U.S. government's takeover of Fannie Mae and Freddie Mac boosted confidence in financial markets in the world's largest economy.
The yen fell against the high yielders on speculation the bailout will encourage traders to buy higher-yielding assets funded by loans made in Japan.


Oil lower

Crude oil fell below USD 105 a barrel in New York for the first time since April as the dollar rose against the euro for an eighth day, curbing the appeal of commodities as an inflation hedge.


Far East Time Zone:

Nikkei down 1.4 % in morning trade

The Nikkei average fell 1.4 % on Tuesday, as investors locked in profits after a rally the previous day, amid continued uncertainty over the global economic outlook.

Japan's top banks fell back from double-digit percentage gains seen on Monday following the U.S. government's seizure of troubled mortgage finance companies Fannie and Freddie.

Shippers such as Mitsui OSK Lines Ltd declined sharply after the key freight index fell to its lowest in more than one year, indicating a slowdown in the global economy.

The benchmark Nikkei fell 172.10 points to 12,452.36.
The index had jumped 3.4 % on Monday The broader Topix lost 1.3 % to 1,200.94.


Australia retail sales rebound in August

Australian retail sales rose by almost triple what was expected in July, suggesting some resilience among hard-pressed consumers, though analysts stressed the data should be treated with caution.

The Australian Bureau of Statistics also warned the series would be more volatile going forward and should be treated with caution. A full survey of sales will now only be released every quarter.

Other data on Tuesday showed the number of home loans taken out in July dipped slightly.
Business conditions and confidence edged up from seven-year lows in August, but only thanks to strength in mining as activity elsewhere was subdued.

AUD/USD traded between 0.8020 and 0.8172

Published on  Tue, Sep 9 2008, 05:32 GMT

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U.S. stocks advanced

Mon, Sep 8 2008, 05:40 GMT
by Jyske Bank Team

Jyske Bank


  • U.S. seizes Fannie & Freddie

  • The dollar weaker versus euro and up versus yen

  • Asian stocks soar on Fannie, Freddie bailout

Today’s main events:

  • GBP Producer Price Index

  • EUR ECB’s Stark speaks

  • USD FED’s Fisher speaks


American Time Zone:

U.S. stocks advanced

U.S. stocks rose as speculation Lehman Brothers Holdings Inc. will raise money through asset sales helped pare losses in the worst week for global equities in six years.
Lehman rallied 7.2 % on a Reuters report the securities firm may sell assets to boost capital. Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. climbed more than 3 % as banks also benefited from growing expectations the Federal Reserve will hold off raising interest rates. Bank gains overpowered earlier declines of more than 1 % in the Standard & Poor's 500 Index and Dow Jones Industrial Average following a jump in the unemployment rate to a five-year high.


JPY rose and USD fell after US employment report

The yen was headed for its biggest weekly gain against the dollar since May and touched a one-year high versus the euro after the U.S. lost jobs for an eighth month and investors sold higher-yielding assets funded in Japan.


Oil at 5 month low

Crude oil fell to a five-month low of USD 105.13 as the dollar gained, curbing demand for commodities as a hedge, and a government report showed employers in the U.S. cut more jobs last month than forecast, a signal that demand may drop.


Far East Time Zone:

U.S. seizes Fannie & Freddie

The U.S. government on Sunday seized control of mortgage finance companies Fannie Mae and Freddie Mac, launching what could be its biggest bailout ever in a bid to support the U.S. housing market and ward off more global financial market turbulence.

The action, prompted by worries over the companies' shrinking capital, was the latest in a series of emergency steps taken by U.S. officials to prop up the ailing housing market and quell what is now a year-long crisis in credit markets that has helped push many economies toward recession.

"Our economy and our markets will not recover until the bulk of this housing correction is behind us," U.S. Treasury Secretary Henry Paulson said in a statement read to reporters.

Fannie Mae and Freddie Mac, which own or guarantee almost half of the country's USD 12 trillion in outstanding home mortgage debt, were so large that "a failure of either of them would cause great turmoil in our financial markets here at home and around the globe," Paulson said.


The dollar weaker versus euro and up versus yen

The dollar fell against the euro but climbed on a sliding yen on Monday after the U.S. government seized control of mortgage companies Fannie Mae and Freddie Mac to shore up the U.S. housing market and protect against more global financial turbulence.

The Japanese currency was the major loser as the move seemed to lessen one major risk to global financial markets and the U.S. economy, reversing last weeks' broad surge on a flight to safety.

The yen had shot higher last week as growing risk aversion led investors to cut back leveraged carry trades funded in the Japanese currency.

Now some of that process is reversing, knocking the yen broadly lower while boosting the euro and commodity currencies like the Australian dollar.

The euro jumped to 155.35 yen, up 1 % from late in New York on Friday and shot as high as 156.93 yen on trading platform EBS in early Asian trade.

Against the dollar, the euro rose 0.5 % to USD 1.4334, off an 11-month low of USD 1.4197 touched last week.

The dollar climbed 0.7 % to 108.55 yen and touched as high as 109.05 on EBS, while the Australian dollar jumped more than 2 % to 89.69 yen, sharply above a two-year low of 84.98 yen hit last week.

The dollar index, which tracks the value of the greenback against a basket of six currencies, was up slightly at 78.573


Asian stocks soar on Fannie, Freddie bailout

Asian stocks surged 4 % and government bonds tumbled on Monday after Washington took over Fannie Mae and Freddie Mac to save the U.S. housing market and limit the extensive damage of the financial crisis.
Investors, who have been keeping their portfolios heavy with cash, devoured bank shares and ploughed into most Asia-Pacific currencies as the rescue of the top mortgage finance companies, possibly the biggest U.S. government bailout ever, helped willingness to take risks.

Still, the impact of the rescue package on the U.S. government's fiscal position could ultimately hurt the U.S. dollar, some analysts said, a prospect that helped to send Treasury yields higher.

Japan's Nikkei share average rose 3.6 %, bouncing from a 5-1/2-month low on Friday. Stocks of large banks such as Mitsubishi UFJ Financial Group and Mizuho Financial Group rallied 12.3 % and 11.4 %, respectively.

Published on  Mon, Sep 8 2008, 05:40 GMT

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U.S. equities slumped

Fri, Sep 5 2008, 05:52 GMT
by Jyske Bank Team

Jyske Bank


  • Yen hit 13-month high versus the euro

  • Asian stock hammered anew

  • Oil price steady near USD 108

Today’s main events:

  • DEM Industrial Production

  • USD Change in Nonfarm Payrolls & Unemployment Rate

  • USD FED’s Yellen speaks


American Time Zone:

U.S. stock slumped

U.S. stocks fell, sending the Standard & Poor's 500 Index to the longest stretch of losses since January, after rising jobless claims heightened concern the economic slump is worsening and a decline in oil pushed energy producers lower.

Caterpillar Inc., Boeing Co. and United Technologies Corp. retreated as much as 5.9 % after higher unemployment spurred concern about tomorrow's monthly jobs report. Exxon Mobil Corp. dragged energy shares in the S&P 500 to the lowest level since February. Banks and brokerages fell 4.2 % after bond investor Bill Gross warned of a “financial tsunami”.


EUR fell and JPY rose

The euro fell to the lowest level of 1.4316 against the dollar this year as European Central Bank President Jean-Claude Trichet said the countries that use the currency are in an episode of weak activity.

The 15-nation euro dropped against the yen and the pound after Luxembourg Finance Minister Jean-Claude Juncker said the currency is overvalued. The yen and Swiss Franc rose sharply as US stocks dropped significantly.


Oil declined

Crude oil fell more than USD 1 a barrel as the euro weakened to the lowest against the dollar this year, curbing the appeal of commodities as an inflation hedge.


Far East Time Zone:

Yen hit 13-month high versus the euro

The yen surged to a 13-month high against the sliding euro on Friday as investors fled risky positions such as leveraged carry trades, spooked by a sharp fall in stock markets.

Escalating worries about global economic growth fed risk aversion among investors and hammered equities, with Japan's Nikkei share average tumbling 3 % after a sell-off on Wall Street.

Traders cited talk of more hedge funds going under after news earlier this week that Ospraie Management LLC, the world's biggest commodities hedge fund, was forced to close its flagship fund this week.

The sudden downgrade in expectations has forced a wide array of market players to unwind bets that favoured the euro, Australian dollar and commodities.

The euro sank to a 13-month low of 150.60 yen before pulling back to 152.40 yen, down 0.7 % from late U.S. trade.

On Thursday, the euro plunged 3.6 % against the yen -- the biggest one-day drop since the massive carry trade unwind in 1998.

The euro dropped 0.4 % at USD 1.4270 after sliding to a 10-month low of USD 1.4212 in frantic late U.S. trade.


Asian stocks hammered anew

Fears about economic growth and a 3 % slump in U.S. stocks sent Asian shares sprawling on Friday and investors sought safe-haven bonds and unwound currency carry trades, lifting the yen to a 13-month high versus the euro.

Wall Street suffered its steepest decline in more than two months after weekly government data showed an unexpected jump in the number of filings for jobless benefits, souring the mood before Friday's August jobs report, which is expected to show the eighth consecutive decline, with 75,000 jobs lost.

At 0125 GMT, Japan's Nikkei average was down 3 %, Australia's benchmark S&P/ASX 200 index was 2.2 % lower and Singapore's Straits Times index fell to its lowest in almost two years.


Oil price steady near USD 108

Oil prices were little changed near USD 108 on Friday after falling nearly 8 % this week as traders shed commodities positions to join a dollar rally and on signs that USD 100-plus prices were crippling demand.

Concerns about the health of the U.S. economy overshadowed an unexpected drop in weekly U.S. crude oil stocks, with a deeper draw expected this week as the industry registers the effects of Hurricane Gustav, which shut down Gulf refineries and oilfields.

U.S. crude for October delivery rose 1 cent to USD 107.90 a barrel by 0211 GMT. The contract fell on Thursday to settle at USD 107.89 a barrel, its lowest since April 4th.

Published on  Fri, Sep 5 2008, 05:52 GMT

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U.S. equities

Thu, Sep 4 2008, 06:04 GMT
by Jyske Bank Team

Jyske Bank


  • EUR/USD hit 7-month low

  • Oil declined

  • Both ECB & Bank of England expected to keep rates on hold

Today’s main events:

  • SEK Rate announcement from Riksbanken

  • GBP Rate announcement from Bank of England

  • EUR Rate announcement from ECB

  • USD Initial Jobless Claims


American Time Zone:

U.S. equities

U.S. stocks dropped for a third day, led by technology and raw-materials companies, after Corning Inc. cut its earnings estimates and commodity prices fell. Corning, the biggest maker of glass for flat-panel screens, fell the most in two years. Newmont Mining Co. and Freeport-McMoRan Copper & Gold Inc. lost more than 3 % as gold slid to a two-week low and Citigroup Inc. said a slump in commodity producers may worsen. The Dow Jones Industrial Average advanced, led by a 5.8 % jump in General Motors Corp. on sales that decreased less than forecast.


EUR/USD at 7 month low

The euro fell to the lowest level against the dollar in more than seven months after European reports showed retail sales and business investment dropped and crude oil extended its decline.
The yen rose for a fifth day against the euro and increased to a two-year high versus the New Zealand dollar as signs of a global economic slowdown led investors to sell higher-yielding assets and pay back loans in Japan.


Oil declined

Crude oil fell as Royal Dutch Shell Plc and ConocoPhillips said that Hurricane Gustav caused no damage to platforms in the Gulf of Mexico.


Far East Time Zone:

Both ECB & Bank of England expected to keep rates on hold

The dollar dipped against the euro on Thursday, inching away from an eight-month high hit the previous day as investors trimmed positions ahead of an interest rate decision by the European Central Bank.

Both the ECB and the Bank of England are expected to leave interest rates unchanged when they meet later on Thursday and cut them later this year or next year. The euro and sterling have fallen sharply over the past month on such expectations of monetary easing in the longer term.

On Wednesday, the dollar climbed to a 2- year high of USD 1.7667 against the sterling and an eight-month peak of USD 1.4385 versus the euro due to signs that economic weakness is spreading beyond the United States.

EUR/USD traded between 1.4470 and 1.4529

Published on  Thu, Sep 4 2008, 06:04 GMT

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Equities in New York

Wed, Sep 3 2008, 06:33 GMT
by Jyske Bank Team

Jyske Bank


  • Coca-Cola to buy Chinese juice maker

  • Australia economic growth slows in 2nd quarter

  • Crude oil steady below USD 110

Today’s main events:

  • EUR Euro-Zone Retail sales

  • CAD Rate announcement from Bank of Canada

  • USD MBA Mortgage Applications

  • USD FED’s Beige Book


American Time Zone:

Equities in New York

U.S. stocks erased an earlier rally as a retreat in commodity producers’ overshadowed gains in airlines and automakers after Hurricane Gustav spared drilling platforms in the Gulf of Mexico, sending oil to a five-month low.

Alcoa Inc., Exxon Mobil Corp. and Chevron Corp. fell more than 2 % each. Coal producers Peabody Energy Corp. and Massey Energy Co. led all 39 energy companies in the Standard & Poor's 500 Index lower. EBay Inc. slumped 3.5 % as Stifel Nicolaus & Co. reduced its price estimate for the largest Internet auction site, while Apple Inc. tumbled after Thomas Weisel Partners cut profit estimates. Delta Air Lines Inc. climbed more than 14 % as crude slid below USD 110 a barrel.


Far East Time Zone:

Coca-Cola to buy Chinese juice maker

The Coca-Cola Company said on Wednesday it will offer to buy Chinese juice maker China Huiyuan Juice Group Ltd 1886 for a total of HKD 17.92 billion (USD 2.30 billion), in a deal that would expand its presence in China's fast-growing beverage industry.

The iconic U.S. company will pay HKD 12.20 for each Huiyuan share -- nearly triple the stock's closing price of HKD 4.14 on Friday.
Huiyuan shares were suspended on Monday.


Australia economic growth slows in 2nd quarter

Australia's economy grew at its slowest pace in over three years last quarter as weakness in consumption and housing overshadowed strength in business and public spending, reinforcing the case for further interest rate cuts.

Still, the income side of the economy was strong again as booming prices for Australia's resource exports fattened profits, business investment, wages and tax receipts.
2nd quarter GDP was 0.3 % seasonally adjusted (median forecast +0.4 %).


Crude oil steady below USD 110

U.S. crude oil futures steadied on Wednesday, after falling sharply on Tuesday when Hurricane Gustav's impact on the U.S. oil industry was seen limited and a resurgent dollar pressured the market.

Front-month U.S. crude for October delivery was up 1 cent, at USD 109.72 a barrel on the Globex electronic trading platform. On Tuesday, it settled lower by USD 5.75 at USD 109.71, or the lowest settlement since April 8th, when NYMEX settled at USD 108.50.

Published on  Wed, Sep 3 2008, 06:33 GMT

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U.S. market was closed Monday

Tue, Sep 2 2008, 05:59 GMT
by Jyske Bank Team

Jyske Bank


  • Crude oil steady above USD 111

  • The dollar index hit eight-month high

Today’s main events:

  • CHF Consumer Price Index & GDP

  • EUR Euro-Zone Producer Price Index

  • USD ISM Manufacturing & ABC Consumer Confidence

  • USD Construction Spending


American Time Zone:

US market was closed Monday

The US market was closed due to Labor Day.


Oil fell as Gustav weakened

Crude oil fell to its lowest in more than four months after Hurricane Gustav weakened, easing concern of widespread damage to drilling rigs and refineries.


Far East Time Zone:

Crude oil steady above USD 111

U.S. crude oil futures were steady on Tuesday, after falling sharply on Monday when concerns that Hurricane Gustav would cause lasting damage to the U.S. oil sector eased after the storm weakened before hitting the Louisiana coast.

Front-month U.S. crude for October delivery was trading at USD 111.23 a barrel on the Globex electronic trading platform, about 17 cents below levels late on Monday when the exchange did not issue an official settlement price due to the U.S. public holiday. On Monday, it fell USD 4.06 in electronic trading to USD 111.40 a barrel.


The dollar index hit eight-month high

The dollar hit an eight-month high against a basket of major currencies on Tuesday, getting a boost from a sharp drop in oil prices on expectations that Hurricane Gustav's damage to U.S. energy facilities may be less than feared. Sterling and the euro fell further after European Union leaders agreed on Monday to postpone talks on a new EU-Russia partnership until Moscow withdraws its troops to pre-conflict positions in Georgia, traders said

The market showed little follow-through reaction to the surprise resignation of Japan's Prime Minister Yasuo Fukuda on Monday, the second leader to step down in less than a year. The yen initially dipped on the news.

The euro dipped 0.2 % to USD 1.4575 after stumbling to a seven-month trough of USD 1.4556 in early trade.

Sterling touched a two-year low of USD 1.7850 before pulling back to USD 1.7925, down 0.5%.

The dollar index climbed 0.8 % to 77.75 after hitting an eight-month high of 77.823.

Published on  Tue, Sep 2 2008, 05:59 GMT

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U.S. equities fell

Mon, Sep 1 2008, 05:59 GMT
by Jyske Bank Team

Jyske Bank


  • Yen appreciated

  • Economy at 60-year low, says Darling

  • Sterling at record low versus euro

  • Oil price rose on hurricane fear

Today’s main events:

  • SEK PMI Survey

  • DEM Retail Sales & PMI Manufacturing

  • GBP Mortgage Approvals & PMI Manufacturing

  • USD FED’s Hoenig speaks


American Time Zone:

U.S. equities fell

U.S. stocks fell, paring the biggest monthly gain since April, as consumer spending slumped and lower-than-estimated earnings from Dell Inc. dragged down technology companies.

Starbucks Corp. and Amazon.com Inc. each lost more than 2 % in Nasdaq Stock Market trading after the government said growth in spending slowed to 0.2 % in July as incomes declined 0.7 %. Dell, the second-biggest personal-computer maker, had the biggest drop since November.
Constellation Energy Group Inc. helped drive all 31 utility companies in the Standard & Poor's 500 Index lower after Jefferies Group Inc. said the largest U.S. power marketer may have to sell more shares.


JPY appreciated

The dollar declined against the yen as government reports showed consumer spending slowed and personal income dropped in July.
The greenback was headed for its biggest monthly advance against the euro since the European currency began trading in 1999 and its longest gain versus the yen since 2002. The yen appreciated against all of the other major currencies after Japan's government announced plans to spend about 2 trillion yen to revive the world's second-largest economy.


Oil slightly lower

U.S. crude oil futures for October delivery settled at USD 115.46 barrel, down 13 cents after flirting with USD 119 a barrel earlier in the day.


Far East Time Zone:

Economy at 60-year low, says Darling

Britain is facing "arguably the worst" economic downturn in 60 years which will be "more profound and long-lasting" than people had expected, Alistair Darling, the chancellor, told the Guardian Saturday.

In the government's gravest assessment of the economy, which follows a warning from a Bank of England policymaker that 2 million people could be out of work by Christmas, Darling admits he had no idea how serious the credit crunch would become.

GBP/USD traded between 1.8015 and 1.8200.


Sterling at record low versus euro

Sterling fell versus the dollar to its lowest level in more than two years and slid to a record low against the euro on Monday, after comments by Britain's finance minister highlighted the UK economy's weakness.

Britain's economic downturn might turn out to be the worst for 60 years, Chancellor of the Exchequer Alistair Darling told the Guardian newspaper on Saturday.

Sterling gapped lower on technical charts due to Darling's comments, said a trader for a European bank, adding that market expectations for a Bank of England rate cut later this year were weighing on the currency.

The euro jumped to 81.39 pence on the Reuters dealing system, it’s highest since the single European currency was launched in 1999.

EUR/GBP traded between 0.8065 and 0.8139.


Australia current account deficit at AUD 12.77 billion

Australia's current account deficit narrowed sharply in the second quarter, courtesy of a jump in the value of resource exports, but trade still proved a slight drag on economic growth in the quarter. The same surge in resource prices helped boost company profits beyond all expectations as the mining sector boomed, adding to national income. Firms added to inventories at a slower pace.


Oil price rose on hurricane fear

Oil rose nearly USD 2 to over USD 117 on Monday as U.S. energy companies raced to shut down offshore oil production and flood-prone refineries in the Gulf Coast ahead of Hurricane Gustav, which is evoking memories of 2005's devastating Hurricane Katrina.

Forecasters predicted Gustav would be a major Category 3 hurricane by Monday morning local time, with top winds at around 200 kph (125 mph) when it slams into the Louisiana coast, west of New Orleans.

Over 96 % of U.S. Gulf oil production and 82 % of natural gas output had been closed as of Sunday afternoon, the U.S. Minerals Management Service said. The Gulf normally pumps a quarter of all U.S. production and about 15 % of its domestic natural gas output.

U.S. light crude for October delivery rose USD 1.75 to USD 117.21 a barrel by 0016 GMT, after trading as high as USD 118.60 after the electronic market was opened.


Commerzbank to buy Dresdner, axe 9,000 jobs

Commerzbank agreed to buy Dresdner Bank from Allianz on Sunday in a USD 14.5 billion all- German deal that will break the country's banking mould and cost 9,000 jobs.

Commerzbank will buy its competitor in two steps, taking 60 % this year and the rest in 2009 to create a rival to sector leader Deutsche Bank in Europe's biggest economy.

Much of the purchase price will be paid to Allianz in the form of shares, leaving Europe's biggest insurer with a stake of almost 30 % in the new Commerzbank.

The new owner plans to close more than a third of the combined group's 1,900 branches and pare back laggard investment bank Dresdner Kleinwort, which has been further hobbled by the credit crunch.

The deal puts a price tag of 9.8 billion euro on Dresdner. Allianz paid 24 billion for it in 2001.

Published on  Mon, Sep 1 2008, 05:59 GMT

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U.S. equities

Fri, Aug 29 2008, 05:53 GMT
by Jyske Bank Team

Jyske Bank


  • Russia may cut oil flow to the West

  • A bankruptcy filing is looming for Jefferson County, Alabama

  • Japan inflation hits decade high

Today’s main events:

  • NOK Retail sales

  • EUR Euro-Zone Unemployment & Consumer Confidence

  • CHF KOF Swiss Leading Indicator

  • USD Personal Income & Personal Spending

  • USD Chicago PMI & University of Michigan Confidence


American Time Zone:

U.S. equities

U.S. stocks climbed for a third day, led by manufacturers and financial companies, after growth in exports helped the economy expand faster than estimated in the second quarter.

American International Group Inc., Caterpillar Inc. and AT&T Inc. climbed more than 2 % each and helped lead gains in nine of ten industry groups in the Standard & Poor's 500 Index after the Commerce Department said gross domestic product grew at a 3.3 % annual rate. Tiffany & Co., the world's second-largest luxury jewellery retailer, jumped the most in three years on profit that topped analysts' estimates. Energy shares erased an earlier advance, and consumer companies rallied, as oil prices slipped following three days of gains.


USD rebounded from low

The dollar rebounded from the lowest level against the euro this week of 1.4810 as the U.S. economy expanded in the second quarter faster than previously estimated and crude oil prices decreased.
The pound dropped to near a record low of 0.8057 against the euro and depreciated versus the dollar as house prices in Britain fell this month at the fastest annual pace in almost 20 years. The decline in crude oil pushed Canada's dollar down the most in almost three weeks.


Oil fell after IEA comments

Crude oil fell more than USD 2 to USD 115.60 a barrel after the International Energy Agency said it would tap strategic stockpiles, if needed, because of Tropical Storm Gustav.


Far East Time Zone:

Russia may cut oil flow to the West

Fears are mounting that Russia may restrict oil deliveries to Western Europe over coming days, in response to the threat of EU sanctions and NATO naval actions in the Black Sea.

Any such move would be a dramatic escalation of the Georgia crisis and play havoc with the oil markets.

Reports have begun to circulate in Moscow that Russian oil companies are under orders from the Kremlin to prepare for a supply cut to Germany and Poland through the Druzhba (Friendship) pipeline. It is believed that executives from lead-producer LUKoil have been put on weekend alert.

"They have been told to be ready to cut off supplies as soon as Monday," claimed a highlevel business source, speaking to The Daily Telegraph. Any move would be timed to coincide with an emergency EU summit in Brussels, where possible sanctions against Russia are on the agenda.


A bankruptcy filing is looming for Jefferson County, Alabama

After months of failed negotiations with creditors and counterparties to its troubled sewer debt, Jefferson County, Ala., could face a seemingly inevitable bankruptcy filing as soon as Friday.

The county, which is home to Birmingham, the state's largest city, isn't expected to meet a Friday deadline for an interest payment, after it received numerous extensions for earlier deadlines. If the county defaults it would be the largest-ever municipal bankruptcy.

A county spokeswoman said Thursday afternoon that no decision had been made yet regarding a potential bankruptcy.


Japan inflation hits decade high

Japanese inflation hit a new decade-high in July, topping market expectations and reinforcing views that high oil and food prices are dealing a blow to consumers as Japan faces a likely recession.

Unemployment unexpectedly fell and industrial output surprised with a small rise, but the data was not enough to change the bleak outlook for the economy. While annual core inflation rose to 2.4 %, analysts said it was unlikely to prompt the Bank of Japan to move interest rates from their low at 0.5 % for a while as it eyes fall-out from a global slowdown.

As higher costs of energy and basic goods hit people and small companies, the government is expected to finalise on Friday an economic package that Japanese media reported would total around 10 trillion yen (USD 91 billion) but would involve only around 1-2 trillion yen in new spending.

USD/JPY traded between 108.97 and 109.57.

Published on  Fri, Aug 29 2008, 05:53 GMT

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U.S. equities

Thu, Aug 28 2008, 06:04 GMT
by Jyske Bank Team

Jyske Bank


  • Euro rose on ECB comments

  • Australian business investment rose

  • Dollar slips from six-month high

Today’s main events:

  • SEK Retail Sales

  • EUR Euro-Zone M3

  • USD GDP & Personal Consumption

  • USD Initial Jobless Claims & Continuing Claims


American Time Zone:

U.S. equities

U.S. stocks rose for a second day after orders for durable goods unexpectedly advanced in July and analysts said new investments by Fannie Mae and Freddie Mac will boost their earnings.

Alcoa Inc. and Boeing Co. each climbed about 2 % after the Commerce Department report bolstered expectations that the economy is recovering. Fannie Mae and Freddie Mac, the largest U.S. mortgage finance companies rallied more than 11 % each. Crude's advance of more than USD 1 a barrel pushed up 31 of 39 energy producers in the Standard & Poor's 500 Index.


EUR rose on ECB comments

The euro rose from a six-month low to 1.47 versus the dollar as European Central Bank council member Axel Weber said discussion about a reduction in interest rates is premature and crude oil prices increased for a third day.


Oil rose after inventory report

Crude oil futures rose to USD 118.30 after a U.S. government report showed an unexpected decline in inventories.


Far East Time Zone:

Australian business investment rose

Australian business investment surged past all expectations last quarter, led by the booming mining sector, providing muchneeded support to economic growth as households cut back their spending.

Thursday's data also showed firms upgraded already upbeat spending plans for 2008/09, when many analysts had feared the slowing economy would force a pullback.

2nd quarter real private sector capital expenditure +5.7 % q/q, seasonally adjusted (median forecast +2.0 pct).

AUD/USD traded between 0.8576 and 0.8672.


Dollar slips from six-month high

The dollar slipped from a six-month high against the euro on Thursday after comments by a European Central Bank official the previous day scaled back speculation about an ECB rate cut.

ECB Executive Board member Axel Weber, widely considered one of the most influential ECB policy-makers, told Bloomberg News that any talk about lower interest rates in the euro zone was premature.

A rise in oil prices also supported the euro while the dollar remained weighed down by troubles in the U.S. financial system, due to uncertainty over how housing finance firms Fannie Mae and Freddie Mac will be bailed out of the current crisis.

The euro's recovery helped limit yen gains against other currencies and kept the dollar in narrow ranges against the Japanese currency.


Oil price up for 4th day at USD 118

U.S. crude oil futures rose for a fourth straight session to stay above USD 118 a barrel on Thursday, amid concerns Tropical Storm Gustav will intensify into a major hurricane as it moves towards energy facilities in the Gulf of Mexico.

Frontmonth U.S. crude for October delivery was up 20 cents at USD 118.35 a barrel on the Globex electronic trading platform, after settling up USD 1.88 at USD 118.15 on Wednesday.

On Wednesday, the contract touched USD 119.63, the highest since Friday. In the past three sessions, oil has risen USD 3.56.

Published on  Thu, Aug 28 2008, 06:04 GMT

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U.S. equities

Wed, Aug 27 2008, 06:19 GMT
by Jyske Bank Team

Jyske Bank


  • Dollar hit six month high

  • The euro edged higher against the dollar

  • Crude oil edged down

 Today’s main events:

  • SEK Consumer Confidence

  • USD MBA Mortgage Applications

  • USD Durable Goods Orders

  • USD FED’s Lockhart speaks about inflation


American Time Zone:

U.S. equities

Most U.S. stocks advanced as a rally in energy shares overshadowed concern the Federal Reserve will raise borrowing costs to slow inflation.
Anadarko Petroleum Corp. jumped 6.3 % and led gains in 32 of 39 energy producers in the Standard & Poor's 500 Index as crude climbed more than USD 1 a barrel.


USD at six month high

The dollar rose to a six-month high of 1.4570 against the euro on speculation the greenback will be the main beneficiary of a global economic slowdown as German business confidence dropped in August more than forecast.
The minutes from the latest FOMC meeting showed that the Federal Reserve policy makers agreed this month that their next change in interest rates will be to raise them, while reaching no conclusion on the timing of such a decision.


Oil rose on hurricane fears

Crude oil rose to USD 116 on forecasts showing that Hurricane Gustav may enter the Gulf of Mexico, home to more than a fifth of U.S. oil production.


Far East Time Zone:

The euro edged higher against the dollar

The euro edged higher against the dollar on Wednesday due to some short-covering following the euro's fall to a six-month low the previous day.

Some stop-loss buying of euro and buying by CTA funds gave a lift to the single European currency, which slid on Tuesday after data showed German business morale had fallen to a three-year low.

The data was the latest sign that weakness in the U.S. economy had spilled over into other major economies, and underscored market expectations for the European Central Bank to eventually lower interest rates.

The euro rose around 0.5 % to USD 1.4730, pulling away from a six-month low of USD 1.4570 hit on trading platform EBS on Tuesday.

The dollar dipped broadly, with sterling rising around 0.4 % to USD 1.8445, pulling up from a two-year low of USD 1.8330 hit on Tuesday.


Crude oil edged down

U.S. crude oil futures edged down to around USD 116 a barrel on Wednesday, paring gains in the past two sessions made partly on concerns that a storm could disrupt U.S. oil and natural gas installations in the Gulf of Mexico.

Frontmonth U.S. crude for October delivery was down 10 cents at USD 116.17 a barrel on the Globex electronic trading platform, after settling up USD 1.16 at USD 116.27 a day earlier.

The contract gained USD 1.68 in the past two sessions but is still USD 30 lower than its record above USD 147 in mid-July as mounting economic problems in consumer nations threaten demand.

Published on  Wed, Aug 27 2008, 06:19 GMT

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U.S. stocks fell

Tue, Aug 26 2008, 06:07 GMT
by Jyske Bank Team

Jyske Bank


  • JPY and CHF rose

  • New Zealand trade deficit hit 11-monts peak

  • Nikkei fell 1.5 % in morning trade

Today’s main events:

  • SEK Producer Price Index

  • DEM IFO Business Climate

  • USD Consumer Price Index & House Price Index

  • USD Minutes of August 5th FOMC Meeting


American Time Zone:

U.S. stocks fell

U.S. stocks fell the most in a month as a Kansas bank's failure and speculation American International Group Inc. will post a loss heightened concern that credit write downs will keep rattling the financial system.
AIG tumbled to a 13-year low after Credit Suisse Group said the insurer may lose USD 2.41 billion this quarter on mortgage related write downs. Washington Mutual Inc. and Huntington Bancshares Inc. each dropped more than 4 % after Columbian Bank & Trust Co. became the ninth U.S. bank to collapse this year.


JPY and CHF rose

The yen and the Swiss franc rose against all of the other major currencies as stocks fell on bets credit market losses will widen, prompting investors to sell higher-yielding assets and pay back loans in Japan and Switzerland.


Oil slightly lower

Crude oil fell after the Baku-Tbilisi-Ceyhan pipeline, which moves oil from Azerbaijan through Georgia to Turkey's Mediterranean coast, resumed operation.


Far East Time Zone:

New Zealand trade deficit hit 11- month peak

NZ trade deficit in July hits an 11-month peak, driven by high priced oil imports overshadowing flattening export picture.
Annual deficit narrows slightly, but data overall falls short of market expectations.

The New Zealand dollar slipped to a 10-day low on Tuesday as investors avoided risky high-yield currencies amid renewed concerns about global credit markets.

NZ dollar falls through the USD 0.7000 level from its local opening around USD 0.7040, and slides through support levels to touch a session low of USD 0.6960, lowest since August 15th, after selling against the yen and as U.S. currency extends gains.


Nikkei fell 1.5 % in morning trade

The Nikkei average fell 1.5 % on Tuesday, led down by exporters such as Canon Inc on a stronger yen and a sharp drop on Wall Street. The benchmark Nikkei was down 187.68 points at 12,690.98. The broader Topix lost 1.8 % to 1,217.34.

Published on  Tue, Aug 26 2008, 06:07 GMT

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U.S. stocks gained

Mon, Aug 25 2008, 06:00 GMT
by Jyske Bank Team

Jyske Bank


  • Oil sharply lower

  • The dollar and Asian stocks gained

  • Dollar hit 2-year high versus sterling

Today’s main events:

  • DKK Consumer Confidence

  • SEK Trade Balance

  • USD Existing Home Sales


American Time Zone:

U.S stocks gained

U.S. stocks advanced on speculation a purchase of Lehman Brothers Holdings Inc. would end the worst slump by financial shares since at least 1962.
Lehman, which tumbled almost 80 % this year, rallied 13 % after Korea Development Bank said it's considering an investment in the brokerage. Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. gained more than 3.8 percent, helped by Federal Reserve Chairman Ben S. Bernanke's forecast that inflation will ease. United Airlines parent UAL Corp. rose 12 % as crude lost 5.4 %, the most since 2004.


USD rose

The dollar rose to 1.4775 against the euro and 110 against the yen as a South Korean bank said it's considering an investment in Lehman Brothers Holdings Inc., indicating U.S. financial firms may weather credit market turmoil.
The U.S. currency also gained versus the euro on bets yesterday's biggest drop since June was overdone and as a decline in European industrial orders added to evidence of a deepening economic slowdown. Federal Reserve Chairman Ben S. Bernanke said falling commodity prices, a stable dollar and slowing growth should stem inflation.


Oil sharply lower

Crude oil fell more than USD 6 a barrel to USD 115.50 as the U.S. dollar strengthened and BP Plc restored shipments on a Caspian Sea pipeline through Turkey.


Far East Time Zone:

The dollar and Asian stocks gained

The U.S. dollar rose broadly on Monday, hitting a two-year high against sterling, as tumbling oil and gold prices left investors scurrying to buy back the currency and sparked a rebound in Asian stocks.

A rally in the dollar stalled last week after hitting a six-month high against the euro, but an upward trend in the U.S. currency is seen intact.

Recent reports showing shrinking or no economic growth in Britain, the euro zone and Japan have boosted the attraction of the dollar as an alternative investment, especially with crude prices trading at around USD 114 barrel, USD 33 below a record high hit in July.

Even billionaire investor and long-time dollar detractor Warren Buffett, chairman of conglomerate Berkshire Hathaway Inc, came to the currency's aid on Friday when he said in a television interview that he had no bets against the dollar.

Asian stocks rebounded from a two-year low as the drop in oil prices lifted exporter shares. Japan's Nikkei share average jumped about 2 %, with shares of Honda Motor Co leading the way higher.


Dollar hit 2-year high versus sterling

The dollar rose to a two-year high against sterling after data last week showing Britain's economy was stalling, raising the prospect for monetary easing by the Bank of England.
Britain's gross domestic product was revised to show it was unchanged in the second quarter from an initial estimate of 0.2 % quarterly growth, the worst quarterly performance since the second quarter of 1992.

The British data added to the gloomy economic outlook in the euro zone, reinforcing views that the European Central Bank could lower interest rates in the coming months.
While the global economic slowdown and the outlook for monetary easing outside the United States was helping to support the dollar, traders remained sceptical about the dollar's sharp gains due to persistent worries about the U.S. financial system.

Sterling fell as low as USD 1.8415, its lowest since late July 2006. The fall in the pound also dragged the euro lower, with the single currency trading down 0.5 % against the dollar at USD 1.4715


Oil extends losses after biggest drop since 2004

Oil deepened losses on Monday, hovering just above USD 114 a barrel, on diminishing supply concerns as Tropical Storm Fay crossed over land and on easing geopolitical tensions as Russia withdrew the bulk of its troops from Georgia.

But analysts said geopolitical tensions between United States and Russia, the world's second-biggest oil producer, would continue to lend support to prices until Moscow withdraws its troops completely from Georgia.

U.S. light crude for October delivery fell 34 cents to USD 114.25 a barrel.
The contract fell USD 6.59, or 5.4 %, to settle at USD 114.59 a barrel on Friday -- the biggest one-day fall in percentage terms since Dec. 27, 2004.

Oil has fallen about 22 % since its peak of above USD 147 struck mid-July on concerns high energy costs are taking a toll on global fuel demand.

Published on  Mon, Aug 25 2008, 06:00 GMT

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U.S. Stocks advance

Fri, Aug 22 2008, 06:13 GMT
by Jyske Bank Team

Jyske Bank


  • U.S. Dollar declined

  • Oil sharply higher

  • Asia steady against dollar

Today’s main events:

  • GB GDP

  • US Fed’s Bernanke speaks


American Time Zone:

U.S. Stocks advance

U.S. stocks rallied for a second day after the biggest three-day advance by energy companies since 2002 overshadowed speculation credit writedowns at financial companys will increase.

Chevron Corp. and Exxon Mobil Corp. had the biggest gains in the Dow Jones Industrial Average, rising more than 2 percent, as oil surged the most in two months.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. sent financial shares in the Standard & Poor's 500 Index to a 0.7 percent retreat after Citigroup Inc. predicted more bank losses. Banks and brokers pared their decline by more than half after Ladenburg Thalmann & Co. analyst Richard Bove said Lehman Brothers Holdings Inc. is a takeover candidate.


USD declined

The dollar fell the most against the euro in more than a month on speculation further writedowns at financial firms and an increase in crude oil prices will prolong the U.S. economic slowdown.


Oil sharply higher

Crude oil advanced more than USD 6 to USD 122.86 after the signing yesterday of a missile-shield agreement between the U.S. and Poland bolstered concern that Russia may disrupt the flow of oil.


Far East Time Zone:

Asia steady against dollar

Asian currencies were steady to a little stronger against U.S. dollar led by the Singapore dollar and the Chinese yuan.

The Singapore dollar was almost up 0.7 percent against U.S. dollar from late Asian trade on Thursday and reached its strongest level since August 13, and the Chinese yuan was up 0.23 percent against U.S. dollar.

Against the Japanese yen, the dollar edged up 0.2 percent to 109.00.


Asia stocks at two-year low

Asian stocks fell to a two-year low on Friday, as a surge in oil prices above $ 121 knocked the U.S. dollar and the financial crisis showed no signs of ending.

Oil (Crude) is 6.5 percent up this week on tensions between the United States and Russia and the rise have cut a two-week rally in the U.S. dollar.

Published on  Fri, Aug 22 2008, 06:13 GMT

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U.S. Stocks gained

Thu, Aug 21 2008, 06:06 GMT
by Jyske Bank Team

Jyske Bank


  • Oil fell after inventory figures

  • Asia edges up on dollar weakness

  • Japan exports up

Today’s main events:

  • NO GDP

  • GB Retail sales

  • US Jobless claims


American Time Zone:

U.S. Stocks Gained

U.S. stocks climbed, led by energy and metals shares, after Goldman Sachs Group Inc. predicted oil will climb to a record this year and Morgan Stanley advised clients to buy Freeport-McMoRan Copper & Gold Inc.Devon Energy Co., the biggest independent U.S. oil producer, and National Oilwell Varco Inc., the largest maker of drilling equipment, added more than 7 percent.

Freeport rose the most in two weeks on speculation it will benefit from dwindling copper supplies.

Hewlett-Packard Co., the largest personal computer maker, gained 5.4 percent for the biggest increase in the Dow Jones Industrial Average after profit topped forecasts.


EUR fell and USD gained

The euro fell to near the lowest level against the dollar in six months as Germany's economic outlook deteriorated and crude oil prices declined.

The pound approached a two-year low versus the dollar as minutes of the Bank of England's August meeting indicated British inflation risks may have eased a little while the outlook for the economy worsened.


Oil fell after inventory figures but recovered

Crude oil fell more than USD1 a barrel after a government report showed the biggest U.S. inventory gain in more than seven years.
However, the oil price recovered and closed the session unchanged at USD116.50.


Far East Time Zone:

Asia edges up on dollar weakness

Most Asian currencies edged up on Thursday as the dollar eased gave up some of recent gains, with suspected official intervention lending additional support to the Thai baht.

The Japanese Yen rose 0.46% against the dollar to 109.64.


Japan exports up

Japan’s exports in July rose 8.1 percent from a year earlier, above a median forecast for a 5.6 percent increase. The increase is unlikely to disperse fears that global slowdown would put a brake on the world’s second largest economy.

Exports to the United States fell 11.5 percent in July and exports to China excluding Hong Kong and Macao was for the first time since World War Two bigger than exports to the United States.

Published on  Thu, Aug 21 2008, 06:06 GMT

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U.S. Stocks slide on credit fears

Wed, Aug 20 2008, 05:53 GMT
by Jyske Bank Team

Jyske Bank


  • USD declined – Oil rose

  • Asian stocks hit a two-year low

Today’s main events:

  • US MBA Mortgage applications

  • GB Minutes of BoE meeting


American Time Zone:

U.S. Stocks Retreat

U.S. stocks declined and the Standard & Poor's 500 Index posted its steepest twoday slump since June after wholesale prices rose faster than economists estimated, housing starts fell and concern grew that the nation's biggest financial firms will report more losses. American International Group Inc., the largest insurer, and Lehman Brothers Holdings Inc., the biggest mortgage-bond underwriter, retreated more than 4.5 percent as analysts warned of added write downs from bad real-estate loans. Centex Corp. and Pulte Homes Inc. sent homebuilders to a three-week low as construction began on the fewest houses in 17 years. Staples Inc. decreased the most in 1 1/2 months and Saks Inc. dropped as much as 14 percent after saying results will miss forecasts.


USD declined

The dollar dropped from a six-month high against the euro as stocks fell and crude oil prices rose, raising concern the U.S. economic slowdown will be prolonged.
The yen advanced for a second day versus the dollar on speculation credit market losses at financial firms including Lehman Brothers Holdings Inc. will deepen, reducing demand for higher-yielding assets funded by loans in Japan. The dollar also weakened against the euro on speculation its 6 percent rally this month is too fast to be sustained.


Oil rose as USD weakened

Crude oil rose more than USD 1 a barrel to USD 114.40 as a weakening dollar prompted investors to purchase commodities as an inflation hedge.


Far East Time Zone:

Nikkei dips to a one-month low

Japan’s Nikkei fell 0.3 percent to a one-month low with bank shares such as Mitsubishi UFJ Financial Group was hit by worries about the U.S. financial system.


Asian stocks fell to a two-year low

Asian stocks are down 30 percent from a peak hit in November on fear about sharply slowing global growth and worries about the financial system.

Most Asian stock markets edged higher, rebounding as Chinese shares surged on hopes for policies from Beijing to jumpstart growth.


AUD supported by higher commodities

The Australian dollar retained gains above 87 USD, supported by higher commodities price and by a weaker USD.

Published on  Wed, Aug 20 2008, 05:53 GMT

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US Stocks decline – Credit fears

Tue, Aug 19 2008, 05:58 GMT
by Jyske Bank Team

Jyske Bank


  • USD lower

  • Nikkei decline – hit 1 month low

  • BOJ keeps rates steady

Today’s main events:

  • DE - ZEW Sentiment

  • US – Producer prices

  • US – Housing starts


American Time Zone:

U.S Stocks decline

U.S. stocks declined the most in more than a week, led by banking and real estate shares, as growing speculation the government will bail out Fannie Mae and Freddie Mac rattled the mortgage market. Freddie Mac and Fannie Mae slumped to the lowest in almost two decades, losing more than 18 percent, after Barron's said shareholders of the biggest U.S. home-loan financiers would be wiped out in a Treasury rescue. Lennar Corp. and Ryland Group Inc. led a 5.1 percent drop by builders.
Hershey Co. retreated the most since 2002 after the chocolate maker said price increases will curb growth. The market extended its decline after oil pared a loss of as much as 1.6 percent. About 607 million shares traded on the New York Stock Exchange, 25 percent fewer than at the same time a week ago.


USD lower

The dollar fell from the highest level in almost six months against the euro and dropped versus currencies in New Zealand and Australia on speculation its recent rally is too fast to be sustained.
The U.S. currency decreased against the yen as concern the government will be forced to bail out Fannie Mae and Freddie Mac led some investors to sell higher-yielding assets and pay back loans in Japan's currency.


Oil declined
Crude oil fell amid signs Tropical Storm Fay will miss rigs and platforms in the Gulf of Mexico, which accounts for about a fifth of U.S. production.


Far East Time Zone:

Lower stocks on credit fears

MSCI pan-Asia index at lowest since July 2006 with a fall of 1.7 percent on Tuesday, led by exporter shares, on fears of further destabilising in the financial sector.
Nikkei was down 2.65 percent to a one-month low.


AUD sees case for early rate cut

Australia’s central bank could see a case for an early rate reduction to head off a deeper slowdown in the economy. – Even if inflation remained high, the minutes from its August meeting showed on Tuesday.

The RBA left key rates steady at a 12-year high of 7.25 percent at its meeting on August 5, but signalled that the next move was likely to be lower.


Gold slips below $800 again

Gold fell to $792.50 an ounce from $801.05 late in New York on Monday, when it regained $800 in a technical rebound, after falling to its lowest level in nine months around $773 an ounce last week. Gold hit a lifetime high of $1,030.80 in March.


BOJ keeps rates steady

BOJ kept its rate target unchanged at 0.50 percent as widely expected, and cut its economic outlook.

In a statement BOJ said, that economic growth had been sluggish due to weaker growth in exports and high energy and raw material prices.

USDJPY was unchanged at 109.80 after the announcements.

Published on  Tue, Aug 19 2008, 05:58 GMT

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U.S. stocks rose

Mon, Aug 18 2008, 05:58 GMT
by Jyske Bank Team

Jyske Bank


  • Weak oil and commodity prices help support dollar

  • EUR/USD hits 6 months low

Today’s main events:

  • US NAHB housing market

  • CH Retail sales

  • BOJ rate announcement


American Time Zone:

U.S. stocks rose

U.S. stocks rose, sending the Standard & Poor's 500 Index to a third weekly gain, as lower commodity prices boosted the outlook for consumer companies and the two largest bond insurers had their credit ratings affirmed.
Wal-Mart Stores Inc., the world's largest retailer, climbed the most in a week as crude slid for a second day. Ambac Financial Corp. rallied 30 percent and MBIA Inc. advanced 9 percent after S&P concluded a credit review without lowering the companies' ratings.
General Electric Co. gained 1 percent on a Federal Reserve report showing manufacturing in New York unexpectedly grew in August as materials prices retreated.
``It's a big positive for all the companies we invest in that use oil,'' Charles Bobrinskoy, who helps manage about $13 billion as vice chairman of Ariel Investments in Chicago, told Bloomberg Television. ``Commodities got way too high and consumer stocks in particular got too low.''


EUR/USD at 6 months low

The dollar headed for a fifth weekly gain against the euro, its longest winning streak in more than two years, as the European and Japanese economies contracted.
The U.S. currency rose to the strongest level in almost six months against the euro of 1.4664 and a seven-month high versus the yen of 110.67.
The pound dropped for an 11th day against the dollar, the longest run of declines in at least 37 years, on speculation a recession will force the Bank of England to cut interest rates.


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