Greg Secker – Global Market Update

International Report

The FTSEurofirst 300 index closed up 0.6% to close at 1,058.81 points. The index is up 1.2 percent so far this year. The Dow Jones industrial average climbed up 0.03%, to close at 10,567.33. The Standard & Poor’s 500 Index climbed at 0.4%, to close at 1,145.61. The Nasdaq Composite Index rose or 0.78%, to close at 2,358.95. The benchmark Nikkei gained 64.07 points to close at 10,627.99. The Topix gained 0.6% to close at 928.00.

A group of Europe’s leading economies has asked the European Union to look into banning speculative trading in credit default swaps (CDS).  France and Germany in particular want more control in tackling extreme speculation and to police the deficit spending of other member states. This move has been fueled by Greece’s outburst opposing CDS contracts and blaming these products for amplifying its bond market woes. Members of the European Parliament have voted in favour of a Tobin tax on financial transactions. This was passed yesterday, by 536 votes to 80 and the European Commission will now investigate a levy. Yesterday, it was stated that lenders to Dubai World will get a range of options including full repayment once Abu Dhabi decides on the support it will provide to Dubai. Yesterday, Treasury Department data revealed that in February the US posted a record $220.91bn (£147bn) budget deficit.

Due for release is the CHF Libor Rate, CHF SNB Monetary Policy Assessment, CAD Trade Balance, USD Trade Balance, USD Unemployment Claims and NZD Retail Sales m/m.

by Greg Secker

International Report

The FTSEurofirst 300 dropped 0.1% to close at 1,052.55 points. The Dow Jones industrial average gained 0.11%, to close at 10,564.38. The Standard & Poor’s 500 Index climbed up 0.17%, to close at 1,140.45. The Nasdaq Composite Index added 0.36%, to close at 2,340.68. The Nikkei ended almost flat, dropping 3.73 points to close at 10,563.92. The Topix fell 0.2% to 922.44.

Yesterday, the US didn’t support the Greek proposals to impose strict curbs on credit default swaps. Prime Minister George Papandreou had discussions with President Obama in the hope of convincing him to back these plans. Greece insists speculators betting against Greece by trading credit default swaps (CDS) assisted it fall in to economic decline. The Obama administration stated that the President others ideas to make the system fairer. Yesterday, a leading firm that tracks pay data said that in 2009 US consumer, financial and technology companies slashed bonuses for their chief executives by more than half. Today the China Securities Journal reports, that in February Chinese banks extended about 700bn yuan (£68.2bn) in new loans, down from 1.39 trillion yuan in January.

Due for release today is the GBP Manufacturing Production m/m, NZD Official Cash Rate, RBNZ Press Conference, RBNZ Rate Statement, AUD Employment Unemployment Change, CNY Industrial Production.

 by Greg Secker

International Report

The FTSEurofirst 300 index was down 0.8% closing at 1,044.89 points. The Nasdaq climbed +0.25% and the S and P 500 dropped 0.02% at 1,138.50.

Yesterday, proposals to impose curbs on speculators using credit default swaps to bet against troubled states like Greece were labelled by the City as misguided and unworkable. Greek Prime Minister George Papandreou is meeting with US President Barack Obama today, this is in order to gain support for his campaign, at the weekend he stated that Eurozone measures to tackle CDS (credit default swaps) speculators would be unearthed this week. In Detroit property prices have fallen extremely low. One in five properties lies empty; the city appears to be in terminal decline, its population dwindling by the day, hit by an exodus of unemployed and despondent citizens desperate for better prospects elsewhere. Some homes are even going for $100; others are on sale for $500.

Due for release today is the AUD Home Loans m/m.

by Greg Secker

International Report

The FTSEurofirst 300 rose 0.8% to close at 1,035.56 points. The Dow Jones industrial average dropped 0.09%, to close at 10,396.76. The Standard & Poor’s 500 Index boosted up 0.04%, to close at 1,118.79. The Nasdaq Composite Index dropped 0.11 points to close at 2,280.68. The Nikkei gained 31.30 points to close at 10,253.14, while the Topix gained 0.3% to close at 905.65.

Yesterday, after talks between Greek Prime Minister George Papandreou and the French president, the Eurozone is preparing a thorough crackdown on London-based market speculators that “abuse” credit default swaps. Papandreou stated that France, Germany and Eurogroup chairman Jean-Claude Juncker, would unveil new measures in the coming days. At the weekend China’s central bank chief discussed planning for an appreciation of the renminbi, he stated that the current dollar peg was temporary. This is the strongest hint yet from China that it would abandon the unofficial dollar peg, which it has held in place since 2008.

Due for release today is the CHF Retail Sales y/y and also the CAD Housing Starts.

by Greg Secker

The FTSEurofirst 300 rose 0.8% to 1,035.56 points. The Dow Jones industrial average dropped 0.09%, to close at 10,396.76. The Standard & Poor’s 500 Index fell 0.04 %, to close at 1,118.79. The Nasdaq Composite Index dropped 0.11 points to close at 2,280.68.The benchmark Nikkei 31.30 points to close at 10,253.14, while the Topix gained 0.3% to close at 905.65.

Yesterday, Greece was forced to accept a debilitating level of interest on its bond issue of a €5bn (£4.5bn) bond. 24 hours after Greece announced new its new austerity measures, Petros Christodoulou the national debt management boss stated that the gilt sale was “going very well, beyond expectations”. Also according to CMA DataVision, the cost of insuring against a default by Athens fell to 304.8 basis points. On Thursday, after reviewing Dubai’s $22bn debt restructuring, Moody’s downgraded government groups in oil-rich Abu Dhabi. An announcement from China has shown a sharp slowdown in the growth of its official defence budget.

Due for release today is the GBP PPI Input m/m, the USD Non-Farm Employment Change and the USD Unemployment Rate.

International Report

The FTSEurofirst 300 shares rose 0.8 percent to close at 1,035.56 points. The Dow Jones industrial average dropped 0.09%, to close at 10,396.76. The Standard & Poor’s 500 Index rose up 0.04%, to close at 1,118.79. The Nasdaq Composite Index fell 0.11 points to close at 2,280.68. The Nikkei rose 31.30 points to close at 10,253.14, while the Topix added 0.3% to close at 905.65.

Yesterday, the Greek Prime Minister George Papandreou warned that he would go to the International Monetary Fund for support if the EU did not provide the financial assistance he needed. This threat came on the back of fresh spending cuts, which are the country’s toughest in decades. It is expected that these new measures will raise €4.8bn (£4.3bn) after the Greek government stated it would increase VAT by 2% to 21%, would reduce the civil servant annual bonuses by 30% and place a freeze on state pensions. There have also been talks of imposing higher taxes on alcohol, tobacco, luxury cars and yachts.

Due for release today is the GBP Halifax HPI m/m, GBP Asset Purchase Facility, GBP MPC Rate Statement, GBP Official Bank Rate, EUR Minimum Bid Rate, CAD Building Permits m/m, EUR ECB Press Conference, USD Unemployment claims, CAD Ivey PMI and USD Pending Home Sales m/m.

by Greg Secker

International Report

The FTSEurofirst 300 closed 0.8% higher at 1,027.29 points. The Dow Jones industrial average gained 0.02%, to close at 10,405.98. The Standard & Poor’s 500 Index gained 0.23%, to close at 1,118.31. The Nasdaq Composite Index jumped 0.32%, to close at 2,280.79. The benchmark Nikkei rose 31.30 points to 10,253.14, while the Topix added 0.3% to close at 905.65.

Today, Greece plans to unveil new austerity measures in an attempt to cut its budget deficit and secure support from fellow EU members. The austerity package is valued at approximately €4.8bn (£4.36bn) of cuts, this comprises new taxes, a VAT hike and the proposed slashing of public sector pay. Yesterday, Prime Minister George Papandreou told Parliament that Greece needed to avert default and a broader eurozone deficit. Christopher Dodd the US Senate Democratic Banking Committee chairman is expected to unveil a revised bill on financial regulatory reform this week.

Due for release today is the AUD Gross Domestic Product Q4 and AUD Gross Domestic Product Q4.

by Greg Secker

International Report

The FTSEurofirst 300 rose 1.2% at 1,019.59 points. The Dow Jones industrial average jumped 0.76%, to close at 10,403.79. The Standard & Poor’s 500 Index gained 1.02%, to close at 1,115.71. The Nasdaq Composite Index jumped 1.58%, to close at 2,273.57. The Nikkei jumped 49.78 points to close at 10,221.84. The Topix gained 0.4 % to close at 902.71.

In France, Italy and Spain the February car sales rose rapidly as the scrappage schemes lifted business. However European carmakers may have tougher times ahead as the governments start to phase out these incentives. Yesterday, the European Union urged Greece to take extra austerity measures within days to tackle its debt problems. According to the Spanish government, European Union members remain divided over rules that are being planned for hedge funds and private-equity companies. In January, US consumer spending increased at a faster than expected rate and the US manufacturing sector also grew.  The Commerce Department stated that spending rose to 0.5%. According to industry reports, in February the US manufacturing sector grew at a lower than expected rate.

Due for release today is the CAD BOC Rate Statement, CAD Overnight Rate and AUD GDP q/q.

by Greg Secker

International Report

The FTSEurofirst 300 closed up 1.1% at 1,007.51 points. The Dow Jones industrial average climbed up 0.04%, to close at 10,325.26. The Standard & Poor’s 500 Index added 0.14%, to close at 1,104.49. The Nasdaq Composite Index added 0.18%, to close at 2,238.26. The Nikkei jumped 46.03 points to close at 10,172.06. The Topix rose 0.5% to 898.93.

It is believed that Euro zone leaders could offer a €30bn (£27bn) bailout package to Greece in exchange for a harsher set of austerity measures from the troubled country. It is believed that Germany and France are finalising a plan that will mean the state-owned banks buy Greek gilts. German government-owned KfW and French government-owned Caisse des Depots are expected to purchase around half of the €30bn bond issue, with the other half going to private euro debt investors. Tomorrow, the Reserve Bank of Australia (RBA) will have to decide between keeping rates at 3.75% or hiking the rate by 25 basis points. Last month the RBA left rates unchanged.  Since February data has also been mixed, the jobless rate dropped to 5.3 per cent from 5.5 per cent – while December building approvals rose 2.2%.

Due for release today is the GBP Manufacturing PMI, CAD GDP m/m, USD ISM Manufacturing PMI, AUD Building Approvals m/m, AUD Retail Sales m/m, AUD Cash Rate and AUD RBA Rate Statement.

 by Greg Secker

International Report

The Dow Jones industrial average dropped 0.51% to close at 10,321.03. The Standard & Poor’s 500 Index dropped 0.21% to close at 1,102.94. The Nasdaq Composite Index dropped 0.08%, to close at 2,234.22. The benchmark Nikkei climbed 24.07 points to 10,126.03. The Topix gained 0.3% to close at 894.10.

Yesterday, Greece pushed back a crucial bond issue because of a possible downgrade of its sovereign credit rating- by Moody’s joining Standard & Poor’s in threatening to cut Greece’s credit rating within a month. This increased fears that the global economy could slip back into recession. The bond issue is planned to be released next week. According to official figures, in February Germany’s unemployment figures have risen by less than expected. The Federal Labour Office figures showed that the number of jobless rose by 7,000 from the previous month, taking the unemployment total to 3.43m.

Due for release today is the GBP Nationwide HPI m/m, GBP Revised GDP q/q, CHF KOF Economic Barometer, USD Prelim GDP q/q and the USD Existing Home Sales.

by Greg Secker