Market Brief
The Usd was slightly weaker in the Asian session, as markets absorb the Citibank situation. Early in Asia, the Treasury Department, Federal Reserve and FDIC announced a major rescue program for Citibank. The US Treasury will provide a $20bn cash injection and, together with FDIC, will protect on roughly $360bn worth of real estate loans and securities. Other news tricking down the wires is that US President-elect, Obama, will nominate NY Fed Chief, Timothy Geithner, as the new Secretary to the Treasury. We see Geithner's appointment as market positive, as he has a clear background in dealing with the financial crisis. The Market viewed these developments as a signal of the commitment by US policy makers to avoid another wave of financial turbulence and overall markets remained stable. The EurUsd traded higher to 1.2678, while the UsdJpy dropped on the open to 94.95, before settling into a mundane 95-95.50 range. Following the Jpy trade, carry initially slide but then stabilized, as risk appetite reaction was muted. Asian regional indexes are mixed, with the Nikkei up 2.69% and European futures looking to open slightly higher. Gold traded above $800oz, but then slided back to $787.74oz, while crude wti is sitting on the $50.00bll handle. In this holiday shortened week in the US, the markets will be focused on the equity markets and deteriorating state of the domestic economy.
In the data front, in the European session participants will be watching the German Ifo Index, which is expect to decline further in the business climate survey (88.7 exp). This close monitored barometer of Germany, and therefore the Euro zone's economic health, should potentially provide clues to the theory that German is in a better position to handle the economic down turn the US or UK. In addition, markets will be listening closely to ECB memberʼs rhetoric for any signal that a deep cut can be expected in December.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 7,910.79 | 2.69 |
| Hang Seng Index | 12,528.15 | -1.03 |
| Shanghai Index | 1,897.06 | -3.67 |
| FTSE futures | 3,779.50 | -2.2 |
| DAX futures | 4,217.00 | 3.12 |
| SMI Futures | 5.148.00 | -3.32 |
| DJIA futures | 8,012.00 | -0.22 |
| World Markets | Current Level | % Change |
| Gold | 792.34 | -1 |
| Silver | 87.38 | -0.91 |
| VIX | 72.67 | -10.12 |
| Crude wti | 50.01 | 0.16 |
| USD Index | 87.38 | -0.9 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Ifo Business Climate Index (Dec) | 89 | 90.2 | GE / 8.00 |
| Current Account (Sep) s.a. | -- | -€8.4bn | EZ / 8.00 |
| Industrial New Orders (Sep) | -2.2%,-2.2 | -1.2%,-6.2 | EZ / 9.00 |
| Existing Home Sales (Oct) | 5,040K | 5,180K | US / 14.00 |
| Pre-Budget Report | -- | -- | UK / 14.30 |
Currency Tech
AUDUSD
R 3: 0.6596
R 2. 0.6416
R 1. 0.6384
CURRENT: 0.6267
S 1: 0.6077
S 2: 0.6009
S 3. 0.5875
EURJPY
R 3: 121.17
R 2. 120.76
R 1: 121.48
CURRENT: 119.96
S 1: 119.54
S 2: 116.44
S 3: 115.00
USDSGD
R 3: 1.5684
R 2: 1.5436
R 1: 1.5349
CURRENT: 1.5307
S 1: 1.5254
S 2: 1.5167
S 3: 1.5051
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
