Monday Morning Financial Update

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Asian markets are tumbling on this Monday morning, following the in the footsteps of Wall Street. Spanish debt has surfaced in the spotlight as investors drove the price of borrowing for Spain over the 7% bailout number also news over the weekend regarding a halt in aid to Greece by the Troika. 

Global slowdown worries are the main market theme as investors look for new safe havens.The Japanese Yen is now trading against the USD at 78.10 this morning and continuing to fall. The EUR/JPY continues to set record lows.

Gold is holding steady with no direction while the metals pack continues to fall.

Over the weekend investors were looking at:

A Chinese central bank adviser predicted the nation’s expansion may cool to 7.4 percent this quarter, adding to concern that the world’s second-biggest economy has yet to bottom out.

South Korea will ease a rule on mortgage lending to stimulate the real-estate market and boost consumption as faltering global demand hurts the export-reliant economy, an adviser to President Lee Myung Bak said.

Australia’s central bank may cut the benchmark interest rate once more in this cycle if China can maintain its growth outlook, Deloitte Access Economics said.

Spain’s plan to offer cash-strapped regional administrations emergency loans leaves the Treasury with 12 billion euros ($15 billion) of additional funding needs that the government says won’t affect its borrowing plans.

Bank of America Corp. has stepped in to defend China’s second quarter economic-growth data after analysts from Barclays Plc to Mizuho Securities Co. said the figures may be overstated.

Brazil’s inflation unexpectedly accelerated this month, reinforcing investors’ bets that the central bank will soon end a cycle of interest rate cuts that has taken borrowing costs to a record low.

Argentina’s industrial production fell more than 4 percent for a second straight month in June, the biggest two-month drop in a decade, as slowing growth in Brazil undermines automobile exports and steel production.

The euro touched the lowest level in more than 11 years against the yen as a Spanish bill sale highlights funding pressures that have prompted five states in the trading bloc to seek international rescues.

Canada’s dollar rose against its U.S. counterpart for a second week amid speculation global central banks will take additional steps to sustain wavering economic growth, increasing the demand for riskier assets.

South Korea’s won fell for a second day and government bonds climbed after a Chinese central bank adviser forecast an economic slowdown and concern mounted that Greece won’t meet bailout targets, sapping demand for emerging-  market assets.

Treasuries advanced, pushing benchmark 10-year yields down to a record, before reports this week that may show growth in world’s biggest economy cooled and manufacturing and services output in the euro area stalled.

The world’s biggest fixed-income investors, fed up with yields on benchmark government bonds that pay less than zero percent, say they’ve found a new haven from turmoil sweeping global markets: corporate debt

European markets are not expected to fare much better as the day opens.

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About:FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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