- U.S.-based Kraft Foods wants Cadbury’s, but UK company rejects $16.7 bln bid
- Shanghai share index ends up 0.7%
- Euro zone sentix index rises to -14.6 in September vs 17.0 in August, slightly below median forecast of -13.5 but still highest level since July 2008
- Taiwan’s Premier resigns. All cabinet members will offer to resign Thursday. Reaction to perceived slow response to recent typhoon, which killed upto 758 people
- German July factory orders +3.5% m/m, stronger than median forecast of +2.0%
Risk appetite starts the week in good shape. European stocks have made decent gains, helped in no small part by Krafts pursuit of Cadbury’s (see above) Two decent European data releases in form of euro zone sentix investor confidence and German factory orders (see above) will also have helped underpin sentiment.
Against this backdrop USD and JPY marginally weaker.
EUR/USD having started off around 1.4335 has been up to 1.4361, presently off slightly at 1.4350. Still evident caution of renewed China selling on moves above 1.4350, although we don’t have confirmation of such today.
GBP/USD having a good day, presently up at 1.6440 from early 1.6375, Middle East sales at 1.6440/45 so far capping. Sterling, as is normally the case, tends to be big beneficiary of risk on days, EUR/GBP down at .8725 from an early .8750. Talk of decent bid interest lined up down at .8700 though.
USD/JPY effectively sidelined, hardly changed on the day at 93.05.
AUD/USD has been underpinned by robust risk appetite, presently up at .8555 from an early .8515.
Interesting article by AEP in todays Telegraph. Worth a quick read.