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US Non−farm Payrolls, ECB and Riksbank rate decision

Thu, Jul 2 2009, 07:01 GMT
by Pär Magnusson

Danske Bank A/S


Key news

  • US bond yield curve steeper, equities higher, FX markets stable
  • With three major events in Scandinavia, Euroland and the US there is ample room for large swings on the market today

Markets Overnight

Super-Thursday has finally arrived. With the Riksbank, the ECB and US non-farm payrolls data, there is ample opportunity for large swings on the market. Incidentally, US Treasury yields have almost returned to the levels before the huge jump after the last release of non-farm payrolls numbers. After the drop in the wake of yesterday’s ISM data the 2yr Treasury bond yield has declined to 1.05% and the 10yr Treasury Note is trading at 3.54% (9bp higher and flat respectively compared to the pre-non farm payrolls levels a month ago).

Equity markets had a fine day yesterday as most major indices saw gains. The S&P500 rose by 0.4% last night and the Nasdaq index increased by 0.6%. So far this morning the Nikkei index is at an unchanged level.

On the FX market EUR/USD has retreated somewhat after the move up to 1.42 yesterday. The cross has moved back down a figure to 1.41 stoked by statements by the Chinese vice foreign minister that China hopes the USD will remain stable as the world’s reserve currency. EUR/JPY has been quite stable around 136.5 and the Scandinavian currencies are close to unchanged since European closing hours yesterday.

Published on  Thu, Jul 2 2009, 07:06 GMT


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