ZuluTrade Blog

The euro hit a 3-1/2-month low on Friday as news of JPMorgan's trading losses

Market View | Friday, May 11, 2012 2:45 AM GMT

Good Morning ,

- The euro hit a 3-1/2-month low on Friday as news of JPMorgan's trading losses
from a failed hedging strategy spooked investors and lent support to the safe
haven dollar, with stop-loss selling adding to the euro's drop. Talk of EUR
option barrier at 1.2900. Asian stocks fell, heading for the biggest weekly
decline since November, while U.S. equity futures and oil dropped. Treasuries
rallied for an eighth week, the longest winning streak since 1998.

- JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said the firm
suffered a $2 billion trading loss after an "egregious" failure in a unit
managing risks, jeopardizing Wall Street banks' efforts to loosen a federal
ban on bets with their own money.

- UK nationwide consumer confidence dived to 44 in April from 53 in March

- Spain is expected to present new reforms to complete the clean-up of its
banks on Friday after difficult last-minute talks between the government and
lenders. At its weekly cabinet meeting, the government will approve a plan to
force banks to park their toxic real estate assets in holding companies that
would later sell them off. The cabinet is also expected to announce demands
for the banks to set aside a further 35 billion euros ($45 billion) to cover
sound loans in their real estate portfolios. The government has already
forced banks to make provisions of 54 billion euros to cover bad assets.

- European Union paymaster Germany warned Greece on Thursday that European
partners could only go on aiding debt-ridden Athens if it sticks to an
international bailout programme rejected by voters in a general election.
Financial markets, spooked by the risk of a disorderly Greek default
spreading turmoil, steadied as Spain's move to clean up its banks and the
release of a key payment to Athens eased immediate concerns about the euro
zone. "Greece can rely on the solidarity of Europe, but if Greece does not
help itself, there is nothing to be done," German Finance Minister Wolfgang
Schaeuble told a news conference. "Whether Greece is ready to do what is
necessary - only the Greek people can decide."

- S&P says Greece credit rating at risk if it loses support of IMF or EU

- China April CPI up 3.4% yy, PPI -0.7/yy

- China SWF CIC to shift capital from US/Europe to Emerging Markets

- BoC Government Carney does not support temporary inflation policies

Todays Figure's
08.00 Ger CPI
10.30 UK PPI
14.30 CA Employment and unemployment rate
14.30 CA Participation rate
14.30 US Producer prices
14.30 US PPI inflation yy
15.55 US U.Michigan sentiment, conditions, and expectations


Have a great and sunny weekend !

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