Sunday 1 July 2012

Market Update- 2 July 2012

Market Update- 2 July 2012

·      For those who have not read the sports headlines, Spain thrashed Italy 4-0 in the Euro finals, could this be a positive turning of tide for Spain including their debt crisis sues and economy?

·      Risk appetite is definitely back on as most risky assets have gone back up- this was kick started last Friday with the agreement from EU

·      Treasuries fell, pushing up 10-year yields the most in almost three months, after euro-area leaders expanded steps to stem the bloc’s debt crisis, damping demand for the safest assets

·      Spanish and Italian notes rose for a second week as euro-area leaders expanded steps to stem the debt crisis by easing repayment rules for emergency loans to Spain’s banks and relaxing conditions on potential help for Italy

·      The Italian two-year yield dropped to the lowest in a month after leaders of the euro nations also scrapped the requirement that governments get preferred-creditor status on crisis loans to the country’s banks

·      German 30-year bunds dropped for a fourth week as optimism the financial turmoil will be contained reduced demand for the region’s safest assets

·      USDMYR also opened lower this week at 3.1650-3.1700 as we continue to see support at 3.1400 and resistance at 3.2000 in the short term

·      News headlines are likely to drive the markets again this week with BNM meeting on Thursday, we expect no change from BNM and also the US jobs data which will be more crucial

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