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The euro extended gains as Draghi spoke, rising to $1.3030 …

Friday, October 5, 2012 3:40 AM GMT

 Good morning ,

 

- The euro extended gains as Draghi spoke, rising to $1.3030 …

 - Asian markets rose on Friday . Japan's Nikkei Stock Average gained +0.44%, South Korea's Kospi rose +0.12%, Hong Kong's Hang Seng +0.39%, Australia's S&P/ASX 200 rallied +0.94%, though Singapore's SGX Nifty fell -1.44%.

 - European Central Bank President Mario Draghi said the bank is ready to start buying government bonds as soon as the necessary conditions are fulfilled, putting the onus on Spain to decide whether it wants a bailout. The ECB is ready to undertake Outright Monetary Transactions “once all the prerequisites are in place,”Draghi said at a press conference in Ljubljana, Slovenia, after policy makers left the rate at a historic low of 0.75 percent. The plan has“helped to alleviate tensions over the past few weeks” and “now it’s really in the hands of governments.”

 - “Economic growth in the euro area is expected to remain weak, with ongoing tensions in some euro-area financial markets and high uncertainty still weighing on confidence and sentiment,” Drarghi said.

 - Draghi also said that the ECB didn’t discuss cutting rates today, even though inflation will drop below the ECB’s 2 percent limit next year.

 - A majority of economists surveyed before Draghi spoke forecast that the ECB will cut its benchmark rate in December.

 - The yield on Spain’s 10-year government bond rose 3 basis points to 5.79. Three months ago, the yield was above 7 percent. The yield on Italys 10-year security fell 1 basis point to 5.076 percent.

 - The Governor of the Bank of Spain warned that Madrid’s financial forecasts are “optimistic” adding to the mounting pressure on Mariano Rajoy from European Central Bank and the International Monetary Fund. He said that Spain needed to impose more austerity measures, in order to meet the 2013 deficit target of 4.5pc of GDP.

 - On Greece , Draghi rejected the suggestion that the ECB would participate in any further restructuring of Greek government bonds. “We have said several times that any restructuring of our holdings would qualify as monetary financing,” he said.

 - The Bank of England’s Monetary Policy Committee today to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.The Committee also voted to continue with its programme of asset purchases totaling £375 billion, financed by the issuance of central bank reserves.

 - The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The previous change in the size of that programme was an increase of £50 billion to a total of £375 billion on 5 July 2012. The Bank will continue to offer to purchase high-quality private sector assets on behalf of the Treasury, financed by the issue of Treasury bills, in line with the arrangements announced on 29 January 2009 and 29 November 2011.

 - BOC’s Macklem Says Job Market Slack May Continue In Short Term

Canada may reduce monetary stimulus assuming economy keeps growing , Biggest labor market challenge in next 5 years will be finding enough workers, not jobs

Persistent CAD strength is a reason businesses should invest in machinery

 - Japan BoJ Interest Rate Decision stays unchanged at 0.1%

 - The world economy is expected to grow by 3.3%

this year and 3.6% in 2013, according to the International Monetary
Fund, marking downward revisions of 0.1 and 0.3 points respectively from
its July forecast

 

Have a nice day !

 

 

 

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