http://www.fxstreet.com/fundamental/market-view/morning-report/http://www.fxstreet.com/fundamental/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-10.htmlMarket wrap Risk sentiment improved slightly further after an announcement during the London session that Greek politicians had agreed on austerity measures which were acceptable to the IMF/EU/ECB troika. Eurogroup head Juncker later restrained the market, pointing out that a decision on the next rescue package was unlikely at the Eurozone finance ministers’ meeting currently in progress, citing the requirement for Greece’s parliament to approve the measures before a rescue off er can be made.Fri, 10 Feb 2012 05:09:25 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-10.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-09.htmlMarket wrap There was little news-flow of importance to galvanise markets last night. The Eurostoxx 50 closed down 0.1%, and the S&P500 is currently unchanged although it did eke out a fresh six-month high at the NY open. Accounts of an unscheduled meeting between the Greek PM and the IMF troika to finalise the rescue package may have supported the earlier positive mood, while reports the ECB’s governing council is divided on its contribution to the Greek debt deal as well as a StandardThu, 09 Feb 2012 05:13:03 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-09.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-08.htmlMarket wrap Risk markets nudged higher. There was speculation during the NY session that an announcement from Greece was imminent, later given credence by officials who said the PM would meet with the three coalition partners and would release a statement on the agreed austerity measures today. This appeared to excite the Greek stockmarket, which closed 2.2% higher, but markets elsewhere were more restrained. The S&P500 is currently 0.3% higher, where the Eurostoxx 50 closed. Those marketsWed, 08 Feb 2012 05:07:27 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-08.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-07.htmlMarket wrap Markets consolidated after Monday’s push higher. Greece’s debt talks are still in limbo, and the chatter is that the IMF troika is dissatisfied with the countries response so far to the reform, especially regarding the promised privatisation process. That has delayed a meeting of Eurozone finance ministers to later this week, group head Juncker said. He was also reported in Der Spiegel as saying a Grrek default cannot be ruled out (an orderly on is already priced in by the markets,Tue, 07 Feb 2012 06:47:33 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-07.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-03.htmlMarket wrap Markets consolidated. US equities failed to extend the mini-rally rally 30 January, the S&P500 currently unchanged on the day despite the mildly positive news fl ow. Spanish and French government bond auctions were successful, China’s Premier confirmed it was considering greater involvement in the EFSF and ESF Eurozone rescue funds, and Fed Chairman Bernanke reiterated to Congress his frustration with the slow pace of US economic recovery (leaving the door open for QE3) whileFri, 03 Feb 2012 04:59:07 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-03.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-02.htmlMarket wrap Risk sentiment improved, supporting all the major asset classes. Improved economic data certainly helped, starting with the consensus-beating Chinese manufacturing PMI and then including a stronger UK manufacturing PMI and US ISM manufacturing survey. In Euroland, EU President Rompuy declared the Eurozone debt crisis had reached a turning point, citing the recent reversal in peripheral bond yields. German Chancellor Merkel is reportedly about to ask China to contribute to theThu, 02 Feb 2012 05:09:21 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-02.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-01.htmlMarket wrap Risk currencies outperformed during a mixed overnight session. Major asset classes were buoyed during London by the EU summit’s agreement of 25 countries to establish a fiscal discipline treaty, as well as an FT article the next ECB offering of cheap liquidity to banks could be several times as large as the previous offering in December. The mood was soured during NY after the release of weaker and sub-consensus data for consumer confidence, house prices and the Chicago PMI. TheWed, 01 Feb 2012 05:01:06 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-02-01.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-31.htmlMarket wrap The bears had the upper hand last night. The S&P500 is currently down 0.8% but was 1.4% lower early in the NY session and has broken technical channel support dating from 21 December. The main driver appeared to be Greece’s rejection of a proposal to appoint an independent fiscal overseer, the FM firmly opposed to effectively ceding its sovereignty. Markets were also frustrated by no visible progress on the Greek-bondholder negotiations and noted Spain’s Q4 GDP print of -0.3%.Tue, 31 Jan 2012 04:53:49 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-31.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-27.htmlMarket wrap Sentiment was mixed, a London-session rally reversed in NY. Apart from the positive residual effects of the earlier dovish FOMC result, there was a story from Greek newspaper Ethnos that private sector bondholders had revised their debt-swap offer from a coupon above 4.0% to a more palatable 3.75%. Also helping was a good Italian bond auction and strong German consumer confidence. Sentiment turned lower in NY after some weak data for new home sales and leading indicators. TheFri, 27 Jan 2012 05:00:50 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-27.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-26.htmlMarket wrap FOMC causes rebound. Until the US central bank’s meeting an hour ago, markets were on the back foot, weighed by renewed speculation Portugal will need another rescue package (an industry spokesperson suggested another EUR30bn), a mediocre US earnings season (Boeing countered yesterday morning’s Apple surprise), and weak US home sales. The FOMC statement extended the expected period of zero interest rates from mid-2013 to at least late-2014, a dovish surprise to the market, otherThu, 26 Jan 2012 04:51:43 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-26.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-25.htmlMarket wrap Risk sentiment fell in London and rose in NY for a small net loss. The S&P500 has recovered from -0.9% to 0.3% currently. The main drag on sentiment was the rejection by Eurozone finance ministers of the offer by Greek bondholders to swap old debt for new with a 4%+ coupon, the officials requiring a 3.5% starting coupon. A pre-London WSJ article that Portugal may require a second bailout and Standard & Poor’s downgrades of major French banks continued to weigh. The ratingWed, 25 Jan 2012 04:56:34 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-25.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-24.htmlMarket wrap Risk markets probed higher. Much of the London session was driven by reports (from Germany’s FTD for example) that a broad agreement between Greece and bondholders had been reached and negotiations were now focussed on detail, such as the level of the coupon on the swapped debt. A level of 4.0% is supposedly agreeable, although the IMF troika and Germany are pressing for closer to 3.0%. The S&P500 rose to a fresh post-July high of 1322 but then fell later in the NY morning byTue, 24 Jan 2012 04:48:06 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-24.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-23.htmlMarket wrap Commodity currencies and US treasury yields advanced but equities and commodities were capped during London and NY sessions which were largely devoid of significant news. Greece’s Proto Thema reported that the country and banks holding its debt had reached an agreement involving a debt swap into 30 year bonds with an initial coupon of 3.10% rising to possibly 4.75%. That, plus a WSJ article by Hilsenrath suggesting there is little chance the Fed will raise the prospect of furtherMon, 23 Jan 2012 04:43:43 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-23.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-20.htmlMarket wrap Another small rally in equities. The S&P500 continued its run of small daily gains, up 0.5% as we write. The news flow was net positive, but not dramatically so. French and Spanish bond auctions for 7yr and 10yr maturities went well, and Austria saw good demand at its 50yr auction. Q4 US earnings reports from Bank of America and Morgan Stanley helped those shares outperform, and US jobless claims data was encouraging (although other releases were mixed). The CRB commoditiesFri, 20 Jan 2012 04:55:04 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-20.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-19.htmlMarket wrap Another positive overnight session. US equities were volatile during the London session but rose in NY and are currently up 0.8%. The newsflow was largely supportive, with a story the IMF was seeking an increase in its lending capacity from EUR385bn to EUR1tr (although the US Treasury later said it had no intention to do such). A US homebuilders survey recorded a four year high and Goldman Sachs’ Q4 earnings beat low estimates, also helping sentiment. Negative news from Egan-JonesThu, 19 Jan 2012 04:50:03 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-19.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-18.htmlMarket wrap Sentiment improved. Investors appear to have adopted a positive stance at the start of the year, switching from cash to equities according to some US surveys. That sentiment fitted price action last night, the S&P500 up 0.8% currently on some positive news fl ow. China’s above consensus GDP report sparked the buying yesterday afternoon, and stronger sentiment surveys from Germany (ZEW) and the US (NY manufacturing) were also encouraging. Wells Fargo, the biggest US home lender,Wed, 18 Jan 2012 05:09:23 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-18.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-17.htmlMarket wrap Markets stabilised in thin conditions, the US on holiday, but were jolted by further ratings news at the NZ open this morning. Standard & Poor’s cut the EFSF (Eurozone bailout fund) from AAA to AA+ with a developing outlook (which means it may be revised up or down within the next two years). Until that announcement, Friday’s Eurozone ratings downgrades appeared to have little residual impact. One indicator which was closely watched was the French auction of EUR 8.6b notes upTue, 17 Jan 2012 05:08:39 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-17.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-16.htmlMarket wrap Sentiment falls in choppy markets. New year rallies came to an abrupt end after midday London as stories of widespread European sovereign downgrades circulated and were gradually confirmed by some European officials. Nine countries were downgraded, including France and Austria by one notch, Italy, Spain and Portugal by two notches, and 14 were placed on negative watch. Germany’s AAA remained intact. Additional negative news came from the talks between Greece and bondholders whichMon, 16 Jan 2012 05:18:22 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-16.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-13.htmlMarket wrap Much volatility but little change. The first half of the London session was influenced mainly by news of strong government bond auctions in Italy and Spain (Italy sold twice the amount targeted at significantly lower yields), helping drive risky assets higher. Then the ECB announced unchanged policy settings, as expected, although at the press conference Draghi noted downside risks to growth and the risk of lower inflation – effectively leaving the door open to future stimulus. TheFri, 13 Jan 2012 04:47:50 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-13.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-12.htmlMarket wrap Mild risk aversion . The London and NY sessions saw little major news fl ow although there was enough to halt the new year’s rise in sentiment. Equities merely stalled, but the EUR fell and safe-haven bonds rallied. Fitch ratings agency said the ECB should ramp up its purchases of troubled European countries’ debt, particularly Italy’s, to avoid a cataclysm. There were alsorumours France had been given notice of an imminent downgrade, subsequently denied by French officials. TheThu, 12 Jan 2012 04:44:31 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-12.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-11.htmlMarket wrap Sentiment stronger. Most risky asset classes strengthened, the moves attributed to Alcoa’s strong opening of the Q4 US reporting season (sales revenue beat estimates and its global growth outlook was positive), expectations China will ease monetary policy further in the wake of a weak import report yesterday, and Fitch commenting Germany’s AAA was safe and it was unlikely to downgrade France in 2012 (Italy, on the other hand, was mentioned as a downgrade candidate). The S&P500Wed, 11 Jan 2012 05:09:32 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-11.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-10.htmlMarket wrap Risk currencies slightly firmer. It was a lack-lustre evening for equities, the S&P500 currently up 0.1% and extending a consolidation pattern into its fourth day. There was little newsflow of market importance, save perhaps for a meeting between Merkel and Sarkozy. That produced some rhetoric but little else, Merkel stressing again that “no country must leave the Euro”, in contrast to the stance of her coalition partner. Commodities were mixed, the CRB index up 0.6%% but oilTue, 10 Jan 2012 05:11:29 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-10.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-09.htmlMarket wrap Markets failed to fi re despite a decent US payrolls report. Possible explanations for that include a whisper number which matched the outcome, less impressive results when adjusted for online holiday shopping, and entrenched concerns regarding Europe’s economic prospects this year. The S&P500 closed down 0.3% after some volatility immediately after the payrolls release. Hungary was downgraded to BB+ (junk) by Fitch, matching Moody’s and Standard and Poor’s, although EuropeanMon, 09 Jan 2012 07:24:17 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2012-01-09.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-23.htmlMarket wrap Markets pulled back on strong economic data from the US and Europe. Asia, however, ended in the red as last day’s negative sentiment was carried over in early trade, snapping the two days rally. US jobless claims (lowest since April 2008), Michigan sentiment and leading index surprised on the upside and boosted confidence in the markets while lower but positive US and UK GDP growth numbers didn’t pose much concern. Italy’s emergency budget won the final approval in the parliamentFri, 23 Dec 2011 05:05:30 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-23.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-22.htmlMarket wrap Risk markets were split in green and red overnight. Early Europe took Asia’s lead, building on the risk rally into the ECB’s 3yr LTRO liquidity auction. A larger than expected uptake of EUR489bn was initially greeted with enthusiasm - Euro area banks face EUR250 in bond maturities in Q1 and sovereigns face significant refinancing risks too. EUR saw a spike high of 1.3201 after a larger than expected uptake while the AUD briefly pierced 1.02 and NZD posted a quick 40pt rise to highsThu, 22 Dec 2011 05:04:53 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-22.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-21.htmlMarket wrap Risk assets surged overnight on the back of a solid Spanish debt auction and a stronger than expected German December IFO business survey. EUR initially jumped from just above 1.3000 to 1.3040+ after the results of Spain’s short term bill auction showed strong investor interest. The stronger than expected German IFO survey then saw EUR put on another 40 ticks in quick time while the arrival of NY scene saw a final lunge from around 1.3080 to session highs around 1.3132. A muchWed, 21 Dec 2011 04:43:20 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-21.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-20.htmlMarket wrap Markets traded in the red as uncertainty and low investor confidence prevailed. Asia-Pacific succumbed to the uncertainty of a political succession in North Korea while Europe and US markets were unable to hold on to the early gains. Expectations of favorable outcomes from the ongoing European Finance Minister’s conference call on an additional Euro 200 bn IMF funding and ECB president Draghi’s speech had managed to keep markets up, before an e-mailed statement from the BaselTue, 20 Dec 2011 05:10:32 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-20.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-19.htmlMarket wrap Markets were not convincingly risk-negative over the weekend, despite soft data and a collective attack on Europe by the major rating agencies. Ten-year bond yields in the safe-havens of the US and Europe both ended the day lower at 1.85%, while spreads naturally widened in those countries where credit ratingswere put under threat. Equity indices were down in Europe but made small gains in the US, while commodities were generally higher - crude oil fell slightly but nickel roseMon, 19 Dec 2011 04:43:40 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-19.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-16.htmlMarket wrap A modest bounce. Risk markets were slightly firmer, better US jobless claims and US regional manufacturing data, as well as an over-subsubscribed Spanish government bond auction (EUR6.0bn vs 3.5bn targeted) helping sentiment. Partly off setting that, IMF head Lagarde said the crisis is escalating and cannot be resolved by one group of countries. ECB head Draghi also spoke, in Berlin, again dismissing the idea of money printing as an immediate fix by referencing its price stabilityFri, 16 Dec 2011 05:09:21 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-16.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-15.htmlMarket wrap Risk appetite slides further. Markets remained concerned that European officials are not doing enough to address the sovereign debt crisis. There was no fresh major news, but enough to keep concerns alive. Germany’s Merkel told lawmakers there was no easy solution to the crisis and ECB council member Weidmann said he was becoming more sceptical about the efficacy of bond purchases. Weak eurozone industrial production data added further evidence the economy will contract sharply inThu, 15 Dec 2011 04:55:34 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-15.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-14.htmlMarket wrap Pre-FOMC calm. Most major markets consolidated ahead of the US central bank meeting. There was minor news to jostle prices, though. The Spanish auction of 12 and 18 month bills raised EUR4.9bn, moiré than the 4.3bn targeted, and yields were lower than previously, helping wider risk sentiment. Germany’s business confidence survey posted an unexpected bounce, although it still remains depressed. Negative news came from Germany’s Merkel who rejected an increase in the limit of theWed, 14 Dec 2011 05:00:32 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-14.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-13.htmlMarket wrap Rating agencies less than impressed. The positive tone created by Friday’s EU Summit lasted all of 24 hours, rating agency Moody’s assessing policymakers as having failed to produce decisive measures to end the crisis. It sees the EU remaining prone to further shocks and will review all EU countries during Q1 2012. Fitch chimed in during NY, saying the Summit did not off er a comprehensive solution to the crisis. Private sector analysts also reviewed the Summit in a negative light,Tue, 13 Dec 2011 04:55:30 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-13.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-12.htmlMarket wrap A step in the right direction for now. The EU Summit made some progress towards a new fiscal compact, including the introduction of automatic sanctions for fiscal violations, and added a further EUR200bn to it crisis fighting capability via the IMF, although many crisis issues remain unresolved. The market was initially underwhelmed, and the failure to secure the backing of some of the 27 EU countries (notably the UK) caused a few jitters, but a reassessment of the progress madeMon, 12 Dec 2011 04:58:07 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-12.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-09.htmlMarket wrap Hopes dashed. In the first of two key events for the Eurozone crisis this week, the ECB announced it cut the policy rate by 25bp to 1.00%, will provide longer term (3yr) liquidity to banks, and widened the range of collateral it would accept – all widely expected. The blow to markets came during the press conference, when ECB President Draghi said his comment last week that they could “do more” did not refer to unsterilized bond intervention and that such action is prohibited byFri, 09 Dec 2011 04:48:31 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-09.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-08.htmlMarket wrap More waiting. The markets remained in low-activity mode, unwilling to place large bets ahead of the key ECB meeting tonight and the EU Summit result tomorrow night. The S&P500 is currently unchanged from both Monday and Tuesday’s closes, although there was some intra-day movement, a London session dip retraced in NY. The earlier negativity was caused by un-attributed German official comments that it was opposed to combining the ESM and EFSF. There were also comments thatThu, 08 Dec 2011 05:27:06 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-08.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-07.htmlMarket wrap The wait. The equities rally which started on 28 November stalled last night, traders lacking conviction ahead of the ECB meeting on Thursday and the EU Summit on Friday. There was only minor news for markets. Around the NY open, Standard & Poor’s placed the EFSF bailout fund under negative watch, saying it could drop one or two notches from AAA if its guarantors are downgraded. This only weighed on markets briefly, the move seen as a logical extension of yesterday’s EuropeanWed, 07 Dec 2011 05:05:26 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-07.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-06.htmlMarket wrap Risk rally extended. Some positive news from Europe helped buoy a market expecting much from policy makers this week. The Italian Government will present to Parliament a set of austerity and growth measures worth around EUR30bn, including guaranteeing bank bond issuance as part of an EU agreement to bolster financial system confidence. In addition, the German and French leaders have apparently reached an agreement on a strategy for the Eurozone, including a revised treaty,Tue, 06 Dec 2011 05:20:56 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-06.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-05.htmlMarket wrap Risk markets rose and fell around an apex marked by the US payrolls report. Markets were initially buoyed by a Bloomberg report (unattributed) that the Eurogroup is working on a proposal for up to EUR 200bn in Eurozone central bank loans to the IMF. Disappointment set in after the US payrolls report showed 120,000 jobs gained, which while close to consensus among economists was lower than the 250,000 ‘whispered’. Further bad news came after during the NY session when a report fromMon, 05 Dec 2011 04:51:21 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-05.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-02.htmlMarket wrap Risk markets consolidated after a three-day rally. A smattering of minor news included the positive results from the French and Spanish bond auctions worth EUR3.8bn and EUR4.3bn respectively. ECB chief Draghi told the EU Parliament that the downside risks to economic growth had increased (a possible clue regarding a rate move at next week’s meeting), but added that bond purchases must be limited. US news was mixed, some decent manufacturing activity data but higher jobless claims,Fri, 02 Dec 2011 04:57:48 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-02.htmlhttp://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-01.htmlMarket wrap A surprise coordinated move by central banks to provide cheaper liquidity boosted risk markets. The central banks of the US, EZ, Japan, UK, Switzerland and Canada agreed to provide USD funding via swaps at OIS+50bp, 50bp lower than previously, and extend the program by six months to February 2013 in a move designed to ease stresses in financial markets, particularly funding channels to European banks. There was also supportive news from China, which cut its bank reserveThu, 01 Dec 2011 05:17:25 GMThttp://www.fxstreet.com/fundamental/market-view/natalie_denne@westpac.co.nz (Westpac Institutional Bank)http://www.fxstreet.com/fundamental/market-view/morning-report/2011-12-01.html