•  
  • New York 14:22
  • London 19:22
  • Barcelona 20:22
  • Tokyo 03:22
  • Sydney 04:22

US Morning Briefing

Tue, Dec 22 2009, 12:57 GMT
by RANsquawk Research Team

RANsquawk  |  View company's profile

Vote:

6

0


RANsquawk – The premier squawk provider

RANsquawk delivers unmatched news, analysis, flow, economic releases and market moving events for stocks, bonds FX & energy. Get a free trial !

Overnight News

Asia:

JGBs slipped, with futures pulling away from an 11-month peak, hurt by falling US Treasuries and a rise in Tokyo stocks. The Nikkei rose 1.9% to a three-month closing high, as a weaker JPY lifted exporters, while Isuzu Motors jumped on a report that the truck maker wants to develop new diesel engines for GM. Chip-related stocks got a boost after the Nikkei business daily reported that Toshiba Corp and partner Sandisk would jointly invest JPY 150bln to boost their venture’s production capacity by about 40%. (RTRS)

Japanese manufacturers’ confidence edged up in December but the mood in the service sector worsened to levels seen in May as an export-led recovery has not yet filtered through to domestic demand amid deflation. Overall, the manufacturers’ sentiment index in the Reuters Tankan rose 1 point to -27 in December and is seen improving further by 8 points over the next three months. (RTRS)

  • PBOC’s Zhou says China can tolerate “certain” level of inflation and that Central bank may still need to use reserve ratios to soak up liquidity.

Bonds

EUROPEAN GOVERNMENT BONDS

Bund futures opened sharply lower following the downtick in t-notes overnight which has seen the 2/10yr Euro-Zone spread expand to its widest in over a month. During the session, the news that Moody’s cut the sovereign rating on Greece to A2 from A1 was not as bad as some had feared and has resulted in the 10yr Greek/bund spreads narrowing back the lowest in a week prompting the surrounding peripherals to follow suit.

  • ECB's Nowotny says economy is recovering slowly but sees bottlenecks and insolvency at companies. (BBG/RTRS)

  • ECB's Stark says last months have seen stabilisation in Euro zone and sees 2009 Euro zone GDP -4%. (BBG/RTRS)

  • ECB’s Orphanides says the ECB should maintain its ultra-loose monetary policy as long as is necessary to head off fresh risks to the Euro-zone economy posed by exceptionally low inflation. (FT)

  • Greece rating cut to A2 from A1 by Moody’s, outlook negative. Moody’s says Greece “extremely unlikely” to face liquidity problems but added it is more likely than not that the rating goes down in the next 12-18 months.

    Maturity251030Bund (Mar10)
    Level1.1852.2483.2413.977122.54
    Change (bps)2.4474.4465.0603.935-0.5


    Gilts:

    Gilt futures opened lower following losses overnight in Asia, but have since ticked higher after a disappointing revision to the UK Q3 GDP reading.

    • UK GDP Q/Q (3Q F) -0.2% vs. Exp. -0.1% (Prev. -0.3%)

    • UK GDP Y/Y (3Q F) -5.1% vs. Exp. -4.9% (Prev. -5.1%) (BBG)


Interested in forex trading? forex brokerage firms!


FOREX.com
Contact the broker/FDM
Open a demo account
Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
Forex Club Financial Company
Contact the broker/FDM
Open a demo account		City Credit Capital (UK) Ltd
Contact the broker/FDM
Open a demo account		Alpari (UK) Limited
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

* GFT is a sponsor of FXstreet.com for advertisement purposes only. GFT does not endorse any other products, services, or companies represented on FXstreet.com. The views of FXstreet.com and all other parties contained therein are not necessarily those of GFT, and GFT makes no warranty as to the accuracy of information provided.

©2010 "FXstreet.com. The Forex Market" All Rights Reserved.