- European finance ministers agree to speed up bailout of Spanish banks – New York Times
- Spanish 10 year govt bond yield down 17 bps at 6.90%
- German court says Parliament’s approval to ‘be respected’ - Constitutional Court convenes in Karlsruhe
- German FinMin Schaeuble: Court injunction could cause ‘huge’ uncertainty. Delay for ESM will mean ‘strong’ yield rises
- ECB’s Noyer: ECB like others has gone beyond normal tasks
- More Noyer: France must respect deficit reduction commitments
- China’s Wen says stabilising growth is most urgent near term task, also long-term arduous task
- Fed’s Bullard: Euro crisis more trumatizing than previously thought
- French May industrial output -1.9% m/m, weaker than Reuter’s median forecast of -0.9%
- Italian May industrial output +0.8% m/m, stronger than Reuter’s median forecast of -0.2%
- UK May industrial production +1.0% m/m, stronger than median forecast of -0.2%. Strongest rise since March 2010
- Japan s.a June consumer confidence index 40.4, down from 40.7 in May
- Japan govt anti-deflation panel: Govt will closely watch forex moves, take decisive action when necessary. Excessive fx volatility, including rapid yen rises, would harm Japan’s economic and financial stability
- China heads for a deflationary shock – AEP at The Telegraph
The agreement by European finance ministers to speed up bailout of Spanish banks, speculation of another early Chinese rate cut, and comment from German Constitutional Court judge that parliament’s approval of ESM/fiscal pact to ‘be respected’, have all helped improve general risk sentiment. It’s nothing too major though.
Eurostoxx 50 up around 1%, gold up about 8 bucks since I’ve been in and US benchmark 10 year treasury yield up at 1.5337% from around 1.5134% first thing. Elsewhere euro zone periphery govt bond yields have come lower, Spanish 10 year back below 7%, off 17 bps at 6.90%.
EUR/USD up at 1.2318 from early 1.2285, having been as high as 1.2333. Major German commercial bank notable buyer of the pairing early. Guess they had a good day.
USD/JPY little changed at 79.45, having recovered from dip to session low 79.21. Japanese exporters were said to be responsible for the swoon. The firmer US treasury yields/improved risk sentiment will have lent much-needed support.
AUD/USD up nicely at 1.0235 from early 1.0170 amid speculation China could cut rates again as soon as tomorrow!!
