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Markets reacted with some disappointment that Fed held off on more aggressive actions to help the economy

Thursday, June 21, 2012 3:24 AM GMT

Good Morning ,

 

- Markets reacted with some disappointment that Fed held off on more aggressive

actions to help the economy. EURUSD dropped below 1.2640 on the announcement

before it recovered again. EMG- and commodity overall kept more or less the

gains of yesterday. Kiwi took out 0.8000 (highest since May) on stronger than

expected GDP data.

 

- Stocks: Nikkei+0.86 %, Hang Seng -0.98 %, Shanghai Composite -1.58 %,

Dow Jones -0.10 %, S+P500 -0.17 %

 

- The FederalReserve will expand its Operation Twist program to extend the

maturities of assets on its balance sheet and said it stands ready to take

further action. The Fed will prolong the program through the end of the year,

selling $267 billion of shorter-term securities and buying the same amount of

longer-term debt in a bid to reduce borrowing costs and spur the economy.

 

- Germany's AngelaMerkel said on Wednesday that both of Europe's bailout

schemes included mechanisms for buying state debt on the secondary bond

market but stressed that this was a "purely theoretical" question andwas not

being discussed. Asked about the possibility of struggling euro zone states

like Spain seeking such help, Merkel told a joint news conference with Dutch

PM Rutte: "I have not heard anything about this. It is true that both the

EFSF and the ESM buying bonds in the secondary market, but this is not in

discussion at the moment," she said.

 

- The ECB islikely to discuss lowering its main interest rate at its July 5

council meeting, ECB Coeure said in an interview with the FT. Mr. Coeure said

there was no obstacle to a rate cut from an inflation point of view, and said

it could help particularly in restoring confidence to financial markets that,

he admitted, "are in disarray." 

 

- LCH ClearnetLtd. raised the extra deposit it demands from clients to trade

some Italian government bonds, a day after increasing charges for most

Spanish bonds. The margin needed for Italian securities due in seven years to

10 years will be increased to 9.5 percent from 8.3 percent. The rate was

boosted on all Italian debt due from two years through 15 years.

 

- Japan'scorporate mood turned pessimistic in June for the first time in four

months, a Reuters poll showed:

* Manufacturers Index June -3, last +2

* Non-Manufacturers Index June +11, same

 

- BOJ Ishida saidthe central bank will continue to pursue powerful monetary

easing to achieve its 1 percent inflation goal. Ishida also said that while

Japan's economy is moving in line with the BOJ's long-term projection made in

April, Europe's debt woes and uncertainties over global growth cloud the

outlook. 

 

- China's factorysector contracted for an eighth straight month in June, with

export orders and prices turning in their weakest showing since early 2009,

HSBC Flash PMI showed.

 

- China Data Recap                          Period      Survey      Actual        Prior

* HSBC Flash Manufacturing PMI        June            -            48.1          48.4

 

- New Zealand DataRecap        Period       Survey         Actual      Prior      Revised

* ANZ NZ Jobs Ads mom           May           -               3.3 %    -2.0%      -1.8 %

* GDP qoq                               Q1          0.4 %          1.1 %      0.3%       0.4 %

* GDP yoy                               Q1           1.3 %          2.4 %      1.8 %     1.9 %

 

- China appears tohave engineered a "soft landing" after its biggest-ever

fiscal stimulus in 2009, which is important for the whole region, Reserve

Bank of New Zealand Governor Alan Bollard said.

 

- 1430 US InitialClaims

- 1600 US Philly Fed Index June

- 1600 US Existing Homes Sales May

- 1600 US House Price Index Apr

- 1600 US Leading Indicators May

- 0900 France PMI Manufacturing + Services May

- 0930 Germany PMI Manufacturing + Services May

- 1000 Eurozone PMI Manufacturing + Services May

- 1000 ECB Current Account Apr

- 1600 Eurozone Consumer Confidence June

- 1030 Spain to sell 2014/15/17 Bonds

- 0800 Switzerland Trade Balance May

- 0900 Switzerland M3 May

- 0915 Switzerland Industrial Production Q1

- 0900 SNB Monthly Bulletin

- 1030 UK Retail Sales May

- 1200 UK CBI Trends Total Orders June

- 1200 UK CBI Trends Selling Prices June

- 1930 BOE Weale

- 1430 Canada Retail Sales Apr

- 1730 BOC Carney

 

 (CET)

 

Have a good day !

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