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Stocks continued to sell off on day 2 after Barack Obama was re-elected...

Market View | Thursday, November 8, 2012 3:36 AM GMT

     Good Morning,


- Stocks continued to sell off on day 2 after Barack Obama was re-elected, I am not sure if financial markets have been betting on the wrong candidate or if fiscal cliff worries are challenging the market again? Currencies stayed in narrow ranges. Australia showed good job data, while New Zealand disappointed. There was also weak manufacturing data out of Japan, however USDJPY remained below 80.00 after US rates came off yesterday.


- Stocks: Nikkei -1.51 %, Hang Seng -1.44 %, Shanghai Composite -1.01 %, Dow Jones -2.36 %, S+P500 -2.37 %


- Fitch Ratings warned that the U.S. may be downgraded next year unless lawmakers avoid the so-called fiscal cliff and raise the debt ceiling in a timely manner, while Moody’s Investors Service said it will wait to see the economic impact should the nation experience a fiscal shock.


- “If there’s a mandate in yesterday’s results,” it’s for both parties to work together, avoid short-term solutions, House Speaker John Boehner, R-Ohio, tells reporters in Washington. * Says “we’re willing to accept some additional revenues via tax reform” * Calls on President Obama to “make good” on his balanced approach to addressing so-called fiscal cliff, be willing to reduce spending, shore up entitlements * Says need an atmosphere where “common ground” is found, time to “revamp the tax code”


- Greek Prime Minister Antonis Samaras mustered the support of enough lawmakers to secure approval of austerity measures needed to unlock bailout funds, after more than 50,000 protesters ringed Parliament. The bill on pension, wage and benefit cuts was approved with 153 votes in favor in the 300-seat Parliament early today, according to acting Parliament speaker Athanasios Nakos. A total of 128 voted against the bill, with 18 voting “present.” One lawmaker was absent.


- President Hu Jintao said China must double per-capita income by 2020, setting a target for the incoming generation of leaders to be unveiled at the close of a Communist Party Congress that started today. In one of his final public appearances before handing over to Xi Jinping, designated as the party’s next general secretary, Hu called for a deeper financial overhaul and more local-level democracy. Speaking six weeks after ex-Chongqing party chief Bo Xilai was ousted from the party, Hu told delegates to the 18th party congress they must “unswervingly” fight corruption.


- Japan Data Recap           Period     Survey     Actual          Prior

* Machine Orders mom       Sep        -2.1 %     -4.3 %     -3.3 %

* Machine Orders yoy         Sep        -4.9 %     -7.8 %      -6.1 %

* Current Account JPY        Sep        761.8b      503.6b     454.7b

* Trade Balance JPY           Sep       -413.5b    -471.3b    -644.5b


- Australia Data Recap     Period      Survey      Actual     Prior      Revised

* Employment Change        Oct         0.5k          10.7k     14.5k       15.5k

* Unemployment Rate         Oct        5.5 %         5.4 %     5.4 %           -


- New Zealand Data Recap      Period         Survey        Actual       Prior

* Unemployment Rate                Q3           6.7 %         7.3 %      6.8 %

* Employment Change qoq         Q3           0.3 %        -0.4 %    -0.1 %

* Employment Change yoy         Q3            0.8 %         0.0 %     0.6 %


- NZ Fin Min English comments in response to questions in parliament: * Says nation is “on track” for moderate economic growth * Says economy can still generate jobs * Says increased savings rate, elevated currency and global slowdown have influenced increase in jobless rate.


- CDU lawmaker Michael Meister, an ally of German Chancellor Angela Merkel, said Ireland may be able to borrow money in capital markets as early as 2013, Handelsblatt reported today, citing Meister. * Ireland won’t need to use aid program in full if it there is enough demand in markets * Terms of Irish aid program may need to be changed: Meister



US Trade Balance Sep


US Initial Claims


Germany Trade Balance Sep


Germany Imports/Exports Sep


France Trade Balance Sep


ECB announces interest rates - no change exp


ECB Press Conference


Bank of England announces interest rates - no change exp


Bank of England asset purchase target - no change exp


Switzerland Unemployment Rate Oct


SNB Zurbruegg


Sweden average house prices Sep


Canada Housing Starts Oct


Canada New Housing Price Index Sep


Canada Intl. Merchandise Trade Sep


BOC Carney


Have a good day

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