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Aug 21, 2012, 09.02 AM IST
Global markets ended flat on Monday. Apple hit a record while Facebook halved from issue price. Euro area finance minister chief Jean-Claude Juncker will visit Greece tomorrow for further discussions.
By Gautam Broker, Research Analyst at CNBC-TV18
EU newsflow in focus
German press reported (over the weekend) that European Central Bank (ECB) is working a bond spread targeting plan
Report says ECB will announce acceptable yield spreads and buy bonds till objective achieved.
Euro moved above 1.235 against the US dollar; Spanish and Italian 2-year bond yield spreads over Germany fell to lowest since May.
“Absolutely misleading to report on decisions, which have not yet been taken”
“Report states individual views, which have not yet been discussed by the ECB's governing council.”
“It is wrong to speculate on the shape of future ECB interventions based on statements by govt officials.”
“ECB will act strictly within its mandate.”
German Central Bank: Active opposition
"Govt bond purchases by the Eurosystem are to be seen critically and entail significant stability risks."
Bond market hopeful
Spain's 10-year bond yield went down 21 basis points on day at 6.28% and its 2-year bonds yields fell 18 basis points to 3.51%
Italy's 10-year bond yield dropped below 5.8% - at 1.5-month low and 2-year bond yield went down 3 basis points to 3.01%
Greece also in focus; German and Greek finance ministers meet to rework bailout terms
Germany, post the meet, says “Not possible to agree a “substantial softening” of the aid terms.”
Euro area finance minister chief Jean-Claude Juncker will visit Greece tomorrow for further discussions.
US markets were steady amid thin newsflow. Volumes remained dismal at 30% below average.
Chicago Fed national activity index for July stood at negative 0.13, which was mildly better than negative 0.36 in June
Apple hit a record while Facebook halved from issue price.
European markets at close: DAX declined 0.1% and CAC was down 0.2%. FTSE slipped 0.5%. Spain lost 1.2% and Italy plummeted 1%.
Euro was sideways but was holding on to gains.
Euro is currently at 1.2355 to the dollar
US Dollar was tad lower, but remained rangebound
Dollar Index was at around 82.4 since Friday
Australian Dollar was lower at 1.04 as against 1.05 to the US dollar on Friday
Brent crude was largely unchanged at around USD 114 a barrel
WTI crude gained 2 cents at around USD 96 a barrel
API inventory report will be announced today
LME Copper was down 1.1% yesterday, which rose 0.1% today morning.
Gold was flat at USD 1623 an ounce
What to watch out for
Spanish Treasury bills auctions
UK public finances
Tags: Gautam Broker
May 25 2013, 16:36
- in Technicals
May 25 2013, 16:36
- in MARKET OUTLOOK