ZuluTrade Blog

G8 didn't deliver any surprising messages

Market View | Monday, May 21, 2012 3:28 AM GMT

Good Morning ,

- The EURUSD bounced of a 4 months low in Asia today. G8 didn't deliver any
surprising messages, polls in Greece show that Pasok and New Democracy Parties
could win the upcoming elections, Hollande will call for Eurobonds at this!
weeks EU-Leader Meeting and China's PM Wen said the government will focus
on growth.

- Stocks: Nikkei +0.20 %, Hang Seng -0.41 %, Shanghai Composite +0.41 %,
Dow Jones -0.59 %, S+P500 -0.74 %

- Leaders of the Group of Eight nations pushed for Greece to stay in the euro
area and supported boosting growth, even as an increasingly isolated Germany
said Europe can't spend its way out of the debt crisis.

- French President Francois Hollande said he will make proposals for eurobonds
at an upcoming European summit as he outlines his ideas to stimulate growth
and help ailing economies within the eurozone.

- Luxembourg Prime Minister Jean-Claude Juncker said a majority of his peers
have doubts about Greek membership of the euro, Spiegel said, without saying
where it got the information. "If we had a secret vote about Greece remaining
in the euro zone we'd have an overwhelming majority against it," the
magazine quotes Juncker as telling Greek Finance Minister Filippos Sachinidis
at a May 14 meeting in Brussels.

- The parties which support Greece's bailout package are set to win an overall
majority in elections due next month, according to two opinion polls
published yesterday. Greece's membership of the euro may depend on New
Democracy and Pasok, the established parties of the right and left
respectively, achieving a clear victory in the June 17 contest. Their leaders
have both promised to impose the swingeing cuts in public spending required
by the €130bn bailout agreement.

- Spain revised up its 2011 budget deficit to 8.9 percent of gross domestic
product after accounting for the unpaid bills of regional governments, the
Budget Ministry said. The revision, from 8.5 percent, won't affect this
year's deficit goal of 5.3 percent of GDP, the government said, adding that
the regions accounted for the change when drafting their budget plans. New
legislation "guarantees that bills won't be hidden away in drawers" in
future, the ministry said in a statement e-mailed at 10 p.m. Friday.

- David Cameron issued a stark warning to eurozone leaders that they must put
in place proper contingency plans to protect their economies in case Greece
drops out of the single currency. He said Greek voters effectively faced an
in-out choice when they go to the polls in next month's re-run elections amid
fears a disorderly exit from the euro could trigger a new global financial

- Britain's banks are strong enough to withstand any Greek exit from the
eurozone but need to keep bolstering their financial strength in the face of
the escalating crisis, according to a member of a Bank of England regulatory
body. Michael Cohrs, who is on the committee monitoring financial risks, said
the eurozone crisis was unfolding on "an hour by hour" basis and it was
difficult to predict where the contagion would end if Greece left the single

- Chinese Premier Wen Jiabao said the government will focus more on bolstering
growth, indicating policies may be loosened further as inflation moderates.
China will "place stabilizing growth at a more important position" while the
government maintains active fiscal and prudent monetary policies, the Xinhua
News Agency cited Wen as saying. The two-sentence report didn't give details.

- IMM Positions: EUR -174k (new record short) vs -144k, JPY -34k vs -41k,
GBP 25k unchanged, CAD 51k vs 60k, AUD 5k vs 25k, CHF -27k vs -17k

- 1430 US Chicago Fed Na Activity Index Apr
- 1115 Fed Lockhart
- 1100 Eurozone Construction Output Mar
- 1100 Italy Current Account Mar
- 0900 ECB Asmussen
- 0745 Switzerland SECO Consumer Confidence Apr
- 0900 Switzerland M3 Apr
- 0900 SNB Monthly Bulletin


Have a good start !

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