After the risk on and excitement of Thursday’s action
following central bank activities, markets
were in a sombre mood as players decided to focus more on the pessimism
embodied in the language of the ECB’s press conference and lack of
any extraordinary policy measures.
·
USDMYR opened higher today at
3.1880-3.1940 as we see more flight to safe
heavens, and we are likely to continue to see the range of 3.1400-3.2000
·
Christine Lagarde of the IMF certainly didn’t help matters
as she signalled that the next IMF report due a week today will include
reductions in global growth estimates: “The global growth outlook will be
somewhat less than we anticipated just three months ago,”. “Many indicators of economic activity – investment,
employment, and manufacturing – have deteriorated. And not just in Europe or
the United States.”
·
The main event on Friday was, of course, US payrolls figure
for the month of June-the print was an increase of 80k, which missed expectations of a 100k gain and overshadowed an
upward revision of May’s figure from 69k to 77k.
·
That was the final straw for risk assets as stocks and
commodities buckled; the Euro fell to a 2
year low of 1.2290 as Spanish and Italian 10yr bond yields topped 7 and 6%
respectively.
·
A late rally in the US
(led by speculation of QE presumably) helped stocks
close about 0.5% off their lows, the S&P
finishing -0.94% and the DOW -0.96%.
·
US treasuries rallied with yields
falling 5bps to 1.549%, they’ve only been this
low 3 days in history (at least BB data wise) and that was in early June.
·
On Sunday Chinese Premier Wen Jiabao reiterated that China will stay committed to preventing house prices rising
too quickly despite recent efforts to ease credit in the world’s 2nd
largest economy. China June Consumer Prices rises 2.2% vs Economists’ estimates
2.3%.
·
And for the sports fan, Roger Federer claimed his 7th
Wimbledon title, beating the local hero Andy Murray in the final – Murray had an emotional
post match speech for those who missed it
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