ZuluTrade Blog

Weak start for risk overall by begin of week, which is going to be busy with a lot of important central bank announcements

Market View | Monday, June 4, 2012 3:51 AM GMT

Good Morning ,

- Weak start for risk overall by begin of week, which is going to be busy with
a lot of important central bank announcements:
* Tuesday: Interest rate decisions in Australia and Canada
* Wednesday: ECB Meeting
* Thursday: Bank of England Meeting, SNB Currency Reserves May and Fed
Bernanke will testify on the economy

- EURCHF remains under pressure, the weekend press was full of articles
questioning openly SNB's policy action and many voices asked the SNB to
abandon the floor.

- Stocks: Nikkei -2.01 %, Hang Seng -2.34 %, Shanghai Composite -1.96 %,
Dow Jones -2.22 %, S+P500 -2.46 %

- German Chancellor Angela Merkel hardened her opposition to joint debt sharing
in the euro region as President Barack Obama singled out Europe's leaders
for not doing enough to arrest the financial crisis. Now, some "come along
and ask for euro bonds, saying all we need are equal interest rates and
everything will turn out all right," Merkel said in a speech to members of
her Christian Democratic Union in Berlin. Instead, what's needed is an
economic overhaul to tackle the lack of competitiveness in Europe, she said.

- An unnamed German official told WSJ that his country would abandon its
opposition to banking union if other member states are ready to give up
sovereign rights to European institutions.

- Mariano Rajoy, the Spanish prime minister, has called for the eurozone to
have "centralised control" over the budgets of all the countries using the
euro. Mr Rajoy said a new central authority would go a long way to
alleviating Spain's economic crisis as it would send a clear signal to
investors that the single currency is an irreversible project.

- The grim U.S. jobs report for May does not warrant further easing of monetary
policy, Sandra Pianalto, President of the Federal Reserve Bank of Cleveland,
was quoted as saying on Monday.

- French Finance Minister Pierre Moscovici said aid for troubled banks in
Europe should come through the European Stability Mechanism rather than
through state rescue. "We need to go toward a banking union," Moscovici said.
Europe should have "mechanisms to aid troubled banks" which should got
through the ESM "rather than states." The French minister said he "really
wishes that Greece remains in the euro area," adding that it's "highly
preferable" that Greek voters elect a pro-European government.

- Bank of Japan Governor Masaaki Shirakawa said the central bank is watching
how the yen's advance has been affecting the nation as Europe's debt crisis
and weaker U.S. economic data bolster demand for the currency.

- China's non-manufacturing industries expanded at a slower pace for a second
month, as export orders declined and weakness in real estate countered
strength in retailing and leasing, an official survey indicated, The
purchasing managers' index fell to 55.2 in May from 56.1 in April, the
National Bureau of Statistics and China Federation of Logistics and
Purchasing said.

- The Bank for International Settlements said investors are becoming
increasingly concerned about the consequences of Europe's sovereign debt
crisis and weaker growth in Asia and the U.S. "By late May, optimism had
given way to doubts about European economic growth, the financial health of
euro-area sovereigns and banks, the impact of fiscal consolidation on growth,
and political stability inside the euro area," the institution said in its
quarterly report. "Together with signs of greater fragility in U.S. and
Chinese growth, all this unsettled investors and stoked global
financial-market volatility."

- Australia Data Recap                   Period    Survey    Actual    Prior
* TD Securities Inflation mom           May           -       0.2 %      0.3 %
* TD Securities Inflation yoy            May           -        1.8 %       1.9 %
* Inventories                                 Q1         0.7 %     0.9 %       1.4 %
* Company Operating Profit             Q1        -2.5 %    -4.0 %      -6.4 %
* Job Advertisements mom             May         -          -2.4 %      -0.8 % rev

- IMM Positions: EUR -203k vs -195k, JPY -11k vs -18k, GBP 2k vs 11k, CHF -31k
vs -35k, CAD 34k vs 38k, AUD -36k vs -17k, NZD -5k vs -2k

- 1545 US ISM New York May
- 1600 US Factory Orders Apr
- 1030 Eurozone Sentix Investor Confidence June
- 1100 Eurozone PPI Apr
- 0830 Sweden PMI Services May
- 0930 Sweden Service Production May

Have a good start !

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