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Today’s Data & journal links

Data sheets describing major market metrics, news and a journaling area for trading records in the centre of the pdf.

eurusd | gbpusd | usdjpy | s&p500 | nasdaq | dow jones | goldcrude oil

News and Views in brief

Economy

Prime Minister George Papandreou's shock decision to call a referendum on Greece's bailout drew veiled threats from Germany on Tuesday and hammered markets edgy over the euro zone crisis.

Stock index futures tumbled on Tuesday as the deal to rescue Greece and prevent a wider sovereign debt crisis faced a new hurdle and as Asian economic data reignited fears of a slowdown in global growth.

Greek Premier George Papandreou said he will put Greece's bailout deal through a referendum, throwing the long-awaited deal into disarray and sending European stocks down 3.5 percent. The region's bank shares fell 6 percent. http://www.reuters.com/article/2011/11/01/us-markets-stocks-idUSTRE7A01NM20111101

Australia’s central bank cut interest rates for the first time since 2009 and a Chinese manufacturing index slid, stoking concern that Europe’s debt crisis is weighing on Asia’s export-dependent economies.

The Reserve Bank of Australia today reduced its key lending rate to 4.5 percent from 4.75 percent, saying Europe’s woes are starting to hit Asian trade. In China, a purchasing managers’ index fell to 50.4, the lowest level since February 2009, while South Korea reported the smallest gain in exports in two years.

Asian stocks fell for a second day as slowing growth in the region threatens to limit a global expansion already constrained by elevated unemployment in the U.S. and Europe’s crisis. The Chinese report showed a contraction in export orders, fueling speculation that Premier Wen Jiabao may loosen policies to support the world’s second-biggest economy. http://www.bloomberg.com/news/2011-11-01/australia-cuts-rates-for-first-time-since-09-as-europe-s-crisis-hits-asia.html

Indexes –

European stocks dropped, extending the Stoxx Europe 600 Index’s biggest plunge in four weeks, as the announcement of a Greek referendum spurred concern that the country may default. U.S. futures and Asian shares retreated.

Credit Suisse Group AG (CSGN) and Danske Bank A/S led a selloff in lenders, both dropping more than 7 percent, after earnings fell short of analysts’ estimates. National Bank of Greece SA (ETE) sank 12 percent in Athens trading. Mining companies tumbled after a gauge of Chinese manufacturing dropped to the lowest level since February 2009. http://www.bloomberg.com/news/2011-11-01/european-u-s-stock-futures-drop-as-greece-s-government-calls-referendum.html

U.S. stock futures dropped, indicating the Standard & Poor’s 500 Index will retreat for a second day, on worse-than-expected manufacturing data from China and uncertainty surrounding European bailout efforts.

Bank of America Corp. (BAC) fell 3.1 percent in early New York trading as it may have to scrap plans to impose a monthly fee on some debit card users. Universal Display Corp. (PANL), the developer of technologies used in flat-panel displays, slid 2.4 percent in Germany. Pfizer Inc. rose 1.6 percent in early New York trading after reporting earnings that beat analysts’ estimates.

S&P 500 futures expiring in December fell 1.9 percent to 1,225.1 at 7:13 a.m. in New York. Contracts on the Dow Jones Industrial Average declined 158 points, or 1.3 percent to 11,739.http://www.bloomberg.com/news/2011-11-01/u-s-stock-index-futures-drop-on-china-manufacturing-data-europe-concern.html

Currencies

The euro weakened for a third day against the dollar, extending yesterday’s 2 percent slump, as renewed concern Greece will default and the European Central Bank will cut interest rates damped demand for the currency.

The 17-nation euro fell the most in two weeks versus the yen after Greek Prime Minister George Papandreou pledged to put the European Union’s latest accord to a referendum, risking pushing the country into default if rejected by voters. The dollar and yen strengthened as stocks slid around the world and a Chinese report showed manufacturing slowed. Australia’s dollar declined after the nation’s central bank cut interest rates.

“European fears and risk aversion are trumping everything and gives euro bears the confidence to have another go at the shared currency,” said Kit Juckes, head of foreign-exchange research at Societe Generale SA in London. “What the Greeks are considering doing would result in about as disorderly a default as you can get. That threatens to return Europe to the maelstrom” and boosts the chance of an rate cut http://www.bloomberg.com/news/2011-11-01/euro-holds-losses-on-bets-ecb-will-signal-rate-cuts-yen-erases-declines.html

The Australian dollar fell for a third day against its U.S. counterpart after the Reserve Bank cut interest rates for the first time in 2 1/2 years on signs global growth is moderating.

The so-called Aussie declined against its 16 major peers after RBA Governor Glenn Stevens said inflation is close to the central bank’s target, adding to prospects policy makers may further reduce rates. Demand for the Australian and New Zealand dollars was limited after data showed manufacturing in China, the South Pacific nations’ major trading partner, slowed.

“The Aussie is lower after the RBA rate cut,” said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. “It seems like they have opened the door for more rate cuts because they say that inflation is likely to be close to target. I think there’s a possibility there may be another cut in December.”http://www.bloomberg.com/news/2011-11-01/aussie-declines-as-rba-cuts-rates-china-manufacturing-slows.html

Commodities

MF Global Holdings Ltd. (MF), the holding company that filed for bankruptcy protection, was suspended from trading on the London Metal Exchange. CME Group Inc., the largest futures market, also suspended the broker-dealer unit MF Global Inc. as a clearing member.

MF Global U.K. Ltd. was excluded from LME electronic and floor trading after it was declared a defaulter by LCH.Clearnet Ltd., which clears transactions, the LME said in an e-mailed statement yesterday. The unit is one of 12 category 1 members, giving it the right to trade in the LME’s 6-meter-wide (20-foot) ring, home to London’s last open-outcry transactions. http://www.bloomberg.com/news/2011-11-01/mf-global-suspended-from-lme-trading-cme-clearing-after-bankruptcy-filing.html

Steelmaker demand for iron ore, the biggest source of cargoes for commodity carriers, is weakening, threatening to end the most profitable shipping rates in almost a year.

Ore stockpiles at ports in China, the largest user, already expanded to within 3.6 percent of a record, according to Antaike Information Development, a Beijing-based researcher. Chinese steelmaking is near the least profitable in almost three years, data compiled by Bloomberg Industries show. Iron-ore swaps, traded by brokers and used to bet on future costs, show no price rebound until at least 2013, according to Clarkson Securities Ltd., a unit of the world’s biggest shipbroker.

http://www.bloomberg.com/news/2011-11-01/iron-ore-collapse-seen-ending-most-profitable-shipping-in-a-year-freight.html