Aug 10
20
The EU approves further Debt from Greece
International Market Report 20th August 2010
The Nikkei dropped 1.7% or 162.69 points to 9,199.99, while the broader Topix dropped 1.6% to 830.65. The Dow dropped 144 points to close at 10,271, however the S&P 500 dropped 18 points to close at 1,075. The NASDAQ fell 36 points to close at 2,178.
Wheat prices rose to $7 a bushel due to worsening prospects over Russia’s harvest this fall and beyond. It is likely that Russia will boost its grain imports amid a persistent drought that has forced it to ban exports. Last year, the country was one of the world’s largest wheat exporters, the usual trickle of imports could turn into a flood to make up for the anticipated shortfall in this year’s harvest. Yesterday, Deutsche Bundesbank raised its forecast for German economic growth in 2010, becoming the first official body to upgrade its outlook after the data released last week. In its monthly report, the Bundesbank lifted its 2010 forecast. The European Commission has approved the next €9bn (£7.4bn) tranche of loans for Greece, the underlying economy continues to deteriorate as Greek banks suffer a record loss of deposits. A report by HSBC stated that banks lost 8% of their entire deposit base in the 5 months to May.
Due for release today is the CAD Core CPI m/m.
