Economic Data

  • US Jobless Claims increase in the week ending Dec 5th to 474,000 from 457,000 the previous week, expectations were for 460,000.
  • US International Trade balance in October -$ 32.94 billion in October from -$ 35.65 billion (revised from -$ 36.47 billion) the previous month. Market had been for a widening to -$36.8 billion rather than a slight narrowing of the deficit.
  • Canada posted a Trade Balance surplus of C$ 0.43 billion in October from a revised deficit of –C$ 0.85 billion (revised from-C$ 0.93 billion) versus expectations of –C$ 0.70 billion.

Comments

  • Tim Geithner on Capitol Hill talking TARP saying that improving conditions mean the Government will get $14 billion more than projected but wont get full value of their investments from the likes of AIG, GM and Chrysler. TARP losses are likely to rise as additional funds are disbursed, particularly for housing. Unemployment would be dramatically higher today without TARP.
  • Euro-Group’s Jean-Claude Juncker on the wires saying that a “EU-wide tax on Bank bonuses is a charming idea”
  • US Crude Oil Futures fell below $70-00 for the first time since Oct 8th.
  • Rates as at 4.00 pm EST:- EUR/USD 1.4731/34 USD/JPY 88.20/23 GBP/USD 1.6271/75 USD/CHF 1.0258/62 USD/CAD 1.0504/08 AUD/USD 0.9168/72 NZD/USD 0.7280/84 Dollar Index 76.015 (-0.04) Oil 70.46 Gold 1131.20/80

Currencies

  • After an initial sell-off in the dollar following the unexpected rise in the weekly jobless claims that saw the Euro and sterling rise to session highs of 1.4759 and 1.6315 respectively the dollar gained strength with both currencies drifting off to their lows through the morning session. A weaker dollar and buyers of sterling at around 1.6240 and then again at the 1.6255 level and Euro buyers from below 1.4700 helped give both currencies more of a firmer bid tone as the afternoon progressed.
  • Dollar yen on the news dropped briefly from 88.20 to its low of 87.89 before recovering to 88.15 moments later. It has since traded in a tight 89.15-35 range.
  • Dollar-Swiss opened the session around 1.0260 dropped on the economic data releases to its low of 1.0236 before rebounding to trade most of the day between 1.0260 and 1.0275.
  • Aussie has traded fairly quietly here with a dip to 0.9150 as there was interest to sell Aussie dollars at the London fixing.

Ranges

  • EUR / USD 1.4693 / 1.4759
  • USD / JPY 87.89 / 88.39
  • GBP / USD 1.6220 / 1.6315
  • USD / CHF 1.0236 / 1.0282
  • AUD / USD 0.9136 / 0.9186
  • NZD / USD 0.7270 / 0.7315

World Stock Markets

  • Nikkei 225 closed at 9,862-82 lower by 141-90 (-1.42 %)
  • Hang Seng closed at 21,700-04 lower by 41-72 (-0.19 %)
  • Kospi closed at 1,642-73 higher by 18-56 (+1.14 %)
  • Shanghai Composite Index closed at 3,254-26 higher by 14-70 (+0.45 %)
  • FTSE 100 closed at 5,244-37 higher by 40-48 (+0.78 %)
  • CAC 40 closed at 3,798-38 higher by 40-99 (+1.09 %)
  • DAX closed at 5,709-02 higher by 61-18 (+1.08 %)
  • Dow Jones Industrial Index closed at 10,405-83 higher by 68-78 (+0.67 %)
  • Nasdaq Composite closed at 2,190-86 higher by 7.13 (+0.33 %)
  • S & P 500 closed at 1,102-35 higher by 6-40 (+0.58 %)