- Spain’s De Guindos: Economy is competitive and has growth capacity
- Spain prepared to make an official request for aid in early October as long as conditions do not go substantially beyond what Spanish govt has already committed to. Madrid, Brussels sources cited – Market News
- Sweden’s Riksbank cuts key repo rate by 25 bps to 1.25%
- Buba’s Dombret: Bundesbank opposes ECB govt bond purchases
- EU’s Barroso: Debt crisis is a crisis of confidence. Long-term unemployment rising fast in EU
- BOJ’s Shirakawa: Japan factory output, current yen rises a big negative impact on exports
- UK Halifax house price index -0.4% m/m, -0.9% y/y in 3 months to August, weaker than Reuter’s median forecasts of unchanged, -0.8% respectively
- Euro zone Q2 GDP growth confirmed at -0.2% q/q. Revised to -0.5% y/y from previous estimate of -0.4%
- Greek June unemployment at 24.4%, up from revised 23.5% in May
- German July manufacturing ordrs rise _0.55 m/m, stronger than median forecast of +0.2%
- ESM permanent bailout fund prepares for prime time - Der Spiegel
- Saudi oil well dries up – AEP at The Telegraph
- 4 things everyone gets wrong about the Australian commodity bust - Business Insider
Risk on this morning as markets await Draghi’s press conference at 12:30 GMT.
European stocks firmer, led by Spain’s IBEX up around 1.4%. Oil up half a buck, gold up twelve bucks from what I saw early (model funds buying.) US treasuries firmer, benchmark 10 year up at 1.6130% from 1.5977% first thing.
EUR/USD up 5 pips from what greeted me first thing, presently at 1.2615. Pairing has made a number of attempts to rally, but sell orders gathered up at 1.2630/50 ahead of 1.2650 barrier option interest have easily capped. Session high 1.2636 was the best euro bulls could attain. Buy stops above 1.2650.
USD/JPY up 8 pips at 78.48. Firmer US treasury yields will be lending tenuous support.
Cable effectively unchanged at 1.5905.
AUD/USD up at 1.0240 from early 1.0220 against the mild risk on backdrop .
Forex markets suffering another instantly forgettable session
