- ADP employment report: Private sector jobs rose 110,000
- German FinMin: Greece does not need aid tranche until mid-December
- Early December eyed for Greek referendum; December 4, December 11 favored
- IIF says European bank recapitalization plan has serious problems; will cut lending 5%, hurt economic growth
- Europe on Greek bondholders: Reuters
- Fed holds rates steady; upbeat on short-term economic outlook; downcast long-term view
- EU/IMF: No Greek funds until after referendum
- In Q&A, Bernanke appeared very willing to use QE3, if necessary
- IIF calls on ECB to cut rates tomorrow to aid financial stability
- Chinese vice FinMin: Too early to discuss EFSF investment amid Greek uncertainty; hopes for quick conclusion
- S&P rises 1.6% to 1238; Euro Stoxx up 1.4%
- US 10-year note closes unch at 1.99%
- WTI rises $0.30 to $92.50; gold up $16 to $1736
A relatively subdued range given the FOMC meeting, the gathering of G20 officials in Cannes and a host of others commenting on the wires throughout the day.
The dollar sold-off early in the US session with the market gearing up for a potential QE3 bombshell from the Fed. The Fed did not fire the cannon but they did load a shell and they are ready to light the fuse at the slightest provocation. The greenback range-traded after the Statement and subsequent press conference.
Greece remains the focal point for the market with PM Papandreou on the hot-seat with the Troika in Cannes as we write. Another mini-summit of the EU is scheduled for tomorrow to precede the first session of the G20.
No action to speak off in USD/JPY today in NY. One mild foray below 78.00 was met with bids, prompting talk of the usual semi-official demand. The days range was a less-than-robust 77-965/78.12.
