ZuluTrade Blog

Risk was holding remarkably well given that Spain was cut by Moody's and E. Jones

Market View | Thursday, June 14, 2012 3:43 AM GMT

Good Morning ,

- Risk was holding remarkably well given that Spain was cut by Moody's and
E.  Jones.  Reports that Germany may drop the opposition against a debt-
redemption-fund might have helped to stabilize the sentiment. Focus will be
on the Spanish bonds today  and Italy's bond auction. SNB will hold their
monetary policy assessment at 0930. EURUSD low in Asia 1.2553.

- Stocks: Nikkei -0.13 %, Hang Seng -0.57 %, Shanghai Composite -0.29 %,
Dow Jones -0.62 %, S+P500 -0.70 %

- Spain and Cyprus were downgraded by Moody's Investors Service. Moody's cut
Spain's rating three steps to Baa3 from A3, citing the nation's increased
debt burden, weakening economy and limited access to capital markets. Moody's
also lowered Cyprus's bond rating to Ba3 from Ba1, attributing the downgrade
to the material increase in the likelihood of a Greek exit from the euro

- Spain's credit rating was reduced two steps to CCC+ from B by Egan-Jones
Ratings Co.

- German Finance Minister Wolfgang Schaeuble said Italy "has made remarkable
progress in the last six months" under Prime Minister Mario Monti. Italy will
have the highest primary surplus in the euro region next year if budget
policies are implemented, Schaeuble said. At the same time, there is scope
for more growth-friendly measures, he said. He called for "more Europe,"
urged "large steps" to be taken now and noted that the euro region's debt
crisis can only be solved under current law, which includes the "no-bailout
clause." Euro bonds are only possible after deeper integration in the common
currency area, he said.

- "My effort in Italy since day one has been to fully try to convince Italian
public opinion that some discipline instruments as demanded by the European
Union were not really imposed externally, but are in the longer-term interest
of Italians," Monti said in a speech in Berlin. "It is important at the same
time to create a framework for growth in Europe."

- The German government has begun opening the door to shared debts for the
first time in a profound change of policy, agreeing to explore proposals for
a €2.3 trillion stabilization fund in order to stop the eurozone's crisis
escalating out of control. Officials in Berlin say privately that Chancellor
Angela Merkel is willing to drop her vehement opposition to plans for a
"European Redemption Pact", a "sinking fund" that would pay down excess
sovereign debt in the eurozone. (Telegraph)

- U.S. Treasury Secretary Timothy F. Geithner said European leaders "recognize
they're going to have to do a bunch more" to stem the region's debt crisis.
"This is a very challenging crisis for them still," Geithner said.

- The Group of 20 nations meeting in Mexico next week probably won’t announce
significant progress on Europe’s debt crisis, a U.S. official said.

- Japan Data Recap                Period      Survey     Actual        Prior
* Capacity Utilization              Apr F         -          -0.6 %      1.3 %
* Industrial Production mom    Apr F          -          -0.2 %      0.2 %
* Industrial Production yoy      Apr F          -          12.9 %    13.4 %

- Australia Data Recap                      Period      Survey      Actual      Prior
* Consumer Inflation Exp.                   Jun            -          2.3 %       3.1 %

- New Zealand Data Recap          Period      Survey      Actual       Prior
* Food Prices mom                        May        -             0.3 %     -0.1 %

- New Zealand's central bank left interest rates at a record low and signaled
no change until mid-2013 as the outlook for economic growth deteriorated with
inflation pressures contained.

- The China Banking Regulatory Commission is preparing to ease restrictions on
bank lending to local government finance vehicles and the property sector, the
China Daily reports, citing an unidentified official at the regulator.
* Stabilizing economic growth has become the government's top priority, the
official was cited as saying.
* The newspaper didn't give details of how the restrictions might be eased

- China: a NDRC official sees 2 more rates cuts in the 2nd half this year and
sees the economy stabilizing in H2.

- 1430 US Current Account Q1
- 1430 US CPI May
- 1430 US Initial Claims
- 0800 Germany Wholesale Price index May
- 0900 Spain House Prices Q1
- 1100 Eurozone CPI May
- 0900 ECB Liikanen
- 1000 ECB Monthly Report
- 1530 ECB Weidmann + Luxembourg PM Juncker
- 1100 Italy to sell 2015/2019/2020 Bonds
- 2000 BOE King + UK Chancellor Osborne
- 0930 SNB Monetary Policy Assessment
- 1430 Canada Capacity Utilization Q1
- 1430 Canada Housing Price Index Apr
- 1630 Bank of Canada Publishes Financial System Review


Have a nice day !

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