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Risk FX rose after the EU FM approved the package for Greece

Tuesday, February 21, 2012 3:29 AM GMT

Good morning ,

 

- EURUSD finally rallied to 1.3293 after the EU finance ministers approved
  the EUR 130 bln package for Greece. Risk FX rose as well in line with the
  announcement.


- Stocks: Nikkei -0.23 %, Hang Seng +0.00 %, Shanghai Composite +0.24 %,
  Dow Jones +0.35 %, S+P500 +0.23 %


- Euro zone finance ministers sealed a second EUR 130 bln bailout for Greece on
  Tuesday.  After 13 hours of talks, euro zone officials said ministers had
  finalised measures to cut Greece's debt to 120.5 percent of gross domestic
  product by 2020, a fraction above their original target of 120, after
  negotiators for private bondholders accepted bigger losses to help plug the
  funding gap. The deal includes a 53.5 percent writedown for investors in
  Greek bonds, Luxembourg's Jean-Claude Juncker, who led the meeting, told
  reporters early this morning. Debt-swap bonds will have a coupon of 2 percent
  in 2014, rising to 3 percent in 2015-2020 and to 4.3 percent after that, he
  said.


- Japan's finance minister on Tuesday played down the prospect of G20 nations
  agreeing to provide more funds to the International Monetary Fund to help
  deal with the euro-zone debt crisis."The way I see it, (G-20 nations) are not
  yet in a situation where they are moving in the same direction and are about
  to decide specific amounts" of additional funding for the IMF, Finance
  Minister Jun Azumi said. Azumi also said China and Japan share the view that
  "there may still be some room for Europe to make efforts" to deal with its
  debt crisis. The G-20 finance ministers will meet in Mexico Feb. 18-20. 


- Australia's central bank kept its benchmark interest rate unchanged this
  month as risks in Europe abated and said it has scope to ease policy if
  demand were to "weaken materially," minutes of its Feb. 7 meeting showed.
  "While the financial situation in Europe remained fragile, the likelihood of
  an extremely bad outcome seemed to have diminished somewhat," the minutes
  released today showed. "With growth expected to be close to trend and
  inflation consistent with the target, the board considered that this setting
  was appropriate for the overall macroeconomic outlook."


- RBA Governor Glenn Stevens said funding costs for banks haven't fallen as
  much as the 50 basis points in cuts to the central bank rate.


- New Zealand company executives lowered their expectations for the nation's
  inflation rate. Inflation will average 2.5 percent in two years' time,
  according to the 75 business managers surveyed. Expectations fell from 2.82
  percent in the previous survey in November. Inflation will average 2.24
  percent in one year's time, today's survey showed.


- 1430 US Chicago Fed Nat. Activity Index Jan
- 1600 Eurozone Consumer Confidence Feb
- 1030 UK PSNCR/PSNB Jan
- 2030 BOE Bean
- 0800 Switzerland Trade Balance Jan
- 0800 Switzerland M3 Jan
- 1430 Canada Retail Sales Dec
- 1430 Canada Wholesale Sales Dec

    (CET)

 

Have a good day !

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