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Currencies traded in narrow ranges overnight (EUR 1.2575-1.2617)

Tuesday, June 19, 2012 3:36 AM GMT

Good Morning ,

- Currencies traded in narrow ranges overnight (EUR 1.2575-1.2617). The EMG-
and commodity block recovered some of yesterday's afternoon losses. Light
data calendar today. We have some short auctions in Spain, Greece is expected
to form a government today and there's day 2 at the G20 meeting in Los Cabos.

- Stocks: Nikkei -0.45 %, Hang Seng -0.37 %, Shanghai Composite -0.51 %,
Dow Jones -0.20 %, S+P500 +0.14 %

- World leaders pressured Europe on Monday to take ambitious steps to resolve
its debt crisis. The world's major industrialized and developing economies
were set to urge Europe to take "all necessary policy measures" to resolve a
crisis that has now raged for over two years, according to a draft communiqué
seen by Reuters that was prepared for a Group of 20 summit.

- China on Monday offered $43 billion to the IMF's crisis-fighting reserves,
joining other major emerging markets in pledging new funds to shore up the
global financial system while demanding reforms to give the developing world
more clout at the IMF. China's contribution, confirmed by a Group of 20
official, follows Russia's pledge of $10 billion and is in line with a
promise to supply the International Monetary Fund with extra firepower.

- European leaders incl. German representatives have undergone "notable shift,"
are recognizing slowing economy and need for "supporting demand," says Lael
Brainard, U.S. Treasury Dept. undersecretary for international affairs. "We
can expect to see'' flexibility on timetable for meeting reform goals in
Greek aid package, Brainard said.

- WSJ: Greece appears headed for a new clash with Germany over its rigid
bailout program as the winners of Sunday's Greek election prepare to ask
Europe for more time to cut public spending. Greece's conservative New
Democracy party and its likely Socialist coalition partner, known as Pasok,
are working on a proposal to ask other euro-zone countries for an extra two
years to meet Greece's fiscal targets, officials involved in the preparations
said. The request would mean that on top of the 173 billion euro bailout plan
agreed early this year, Greece would need an additional 16 billion euros in
financing from Europe, these officials said.

- "Greece really doesn't have a lot of time," ECB Nowotny said. "There are
financing needs by the end of July, that means there will be a decision by
the end of July if the next tranche gets paid, or actually the remainder of
the last tranche, as this wasn't paid in full."

- The Reserve Bank of Australia lowered interest rates this month after a
"finely balanced" discussion that the domestic economy was holding up as
global prospects worsened, minutes of its June 5 meeting showed. "There was
clear evidence suggesting a softening in global conditions, and uncertainty
about the future in Europe had increased significantly," minutes released
today showed two weeks after the overnight cash rate target was cut by 25
basis points to 3.5 percent.

- Foreign ownership of Japanese government debt rose to a record in 2011.
Overseas investors owned 8.3 percent of JGBs as of the end of the fiscal year
in March, the Bank of Japan said. This was the highest since 1979, the first
year for which comparable data is available. On a quarterly basis, the ratio
rose to 8.6 percent in the third quarter of 2008 and it has fluctuated
between 8.3 percent and 8.5 percent in the last three quarters.

- China's economy may be improving this month after government measures to
support growth, Commerce Minister Chen Deming said. "The downward economic
trend in April and May this year is pretty obvious" and the central
government took "some preemptive measures to boost consumption," Chen told
reporters. "I personally think that the June situation is turning for the
better" he said without being more specific about the improvements.

- Greek deposit withdrawals slowed after an election victory by the pro-bailout
New Democracy party eased concern the nation will abandon the euro, three
people familiar with situation said.

- Bill Gross, of Pimco, said Germany is in a bond market bubble as the country
is saddled with rising liabilities from Europe's debt crisis.

- Russia has earmarked as much as $40 billion for this year and next to bolster
its economy in the event the euro-region crisis widens and spreads and is also
renewing a plan to permit the government to recapitalize the nation's banking
system, the Financial Times reported, citing an interview with Finance
Minister Anton Siluanov.

- 1430 US Housing Starts May
- 1430 US Building Permits May
- 0845 France Own-Company Production June
- 0845 France Production Outlook Indicator June
- 0845 France Business Confidence Indicator June
- 1100 Eurozone Construction Output Apr
- 1100 Germany ZEW June
- 1100 Eurozone ZEW June
- 1430 ECB Kranjec
- 1030 Spain to sell 12+18 month Bills
- 1030 UK CPI May
- 1030 UK RPI/-X May
- 1430 Canada Wholesale Sales Apr

 (CET)

Have a nice day !

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