Market Brief
The Nikkei 225 ended the morning down 3.1% (a close today below 7’162.90 would be it’s lowest since 1982) lower after the Dow ended Monday down 3.4% at 7’114.78 – it’s lowest point since 1997. The MSCI World Index has slumped for the past 11 consecutive trading days – a performance that wiped no more than $2.7Trillion off the value of global stocks despite the U.S, China and Australia passing initially encouraging stimulus packages.
The EURUSD ranged (1.2670 – 1.2740) higher after NY hours and into the Asian session as the dollar continued to lick its wounds from the disastrous close. It is however believed that the Green-back remains in a strong position to continue its bullish path as risk-aversion continues to be a central theme in the markets – the weekend’s banking bailout revelations not so much as quenching the markets’ thirst for risk.
The Yen extended it’s losses against the U.S Dollar (12-week low) as it continues to shed it’s haven status, investors heeding cautionary comments of a continually declining and fragile global economy. USDJPY graph looking very much like the EURUSD, trading an upwards channel from 94.30 to 95.15 in Asian trading.
Ahead today Fed Chairman Bernanke speaks at 15:00 GMT at his semi-annual monetary policy report testimony before the Senate banking committee. He is expected to be pressed for answers to hot issues such as the bailout of CITI, next week’s commencement of the banking “stress-test” the Fed’s role in securing funds for President Obama’s financial economic and social stimulus plan.
| Global indexes | Current level | % Change |
| Nikkei 225 Index | 7239 | - 1.85 |
| Hang Seng Index | 12713 | - 3.50 |
| Shanghai Index | 2223 | - 3.56 |
| FTSE futures | 3842 | - 1.00 |
| DAX futures | 3946 | - 2.54 |
| DJIA futures | 7140 | + 0.34 |
| Nasdaq futures | 1139 | + 0.29 |
| World Markets | Current Level | % Change |
| Gold | 987.78 | - 0.40 |
| Silver | 14.408 | - 0.10 |
| VIX | 52.62 | + 6.73 |
| Crude wti | 37.97 | - 1.22 |
| USD Index | 87.11 | - 0.14 |
| Todays calender | Estimates | Previous | Country / GMT |
| German IFO Business Climate survey | 83.0 | 83.0 | EUR / 09:00 |
| German IFO Current assesment | 84.9 | 86.8 | EUR / 09:00 |
| German IFO Expectations | 81.1 | 79.4 | EUR / 09:00 |
| UBS Consumption Indicator | - | 1.15 | CHF / 09:00 |
| Euro-Zone Current accounts | - | -16 Bn | EUR / 09:00 |
| Fed Chairman Benrnake Testifies before Senate | - | - | USD / 15:00 |
| US Consumer confidence | 36.0 | 37.7 | USD / 15:00 |
| US House Price Purchase index | -2.0% | -1.8% | USD / 15:00 |
| RBNZ 2-year expectations | - | 2.7% | NZD / 21:45 |
Currency Tech
AUDUSD
R 3: 0.6532
R 2: 0.6503
R 1: 0.6486
CURRENT: 0.6464
S 1: 0.6449
S 2: 0.6417
S 3: 0.6389
EURJPY
R 3: 121.95
R 2: 121.43
R 1: 121.26
CURRENT: 121.16
S 1: 121.06
S 2: 120.71
S 3: 120.05
USDSGD
R 3: 1.5500
R 2: 1.5407
R 1: 1.5341
CURRENT: 1.5290
S 1: 1.5280
S 2: 1.5243
S 3: 1.5184
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
