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Daily US Opening News And Market Re-Cap: August 29
From RanSquawk
- German Chancellor Merkel said she was sure that her coalition MP’s would back measures to increase the powers of the EFSF in next month’s Bundestag vote
- Moody’s said Spain’s proposed fiscal rule is credit positive for the sovereign
- European officials dismissed a suggestion by the IMF's chief Lagarde regarding a mandatory recapitalisation of European banks
- According to a government spokesman, German Chancellor Merkel has never called for Eurozone economic government
- The NYMEX plans to open for trade on Monday as per regular schedules according to a CME spokesman. Meanwhile, NYSE and NASDAQ said they expect to operate normally on Monday despite potential Hurricane impact on New York City
Market Re-Cap
Positive comments from German Chancellor Merkel on her coalition's support towards enhancing the power of the EFSF, together with comments from Moody's that the Spanish proposed fiscal rule is credit positive for the sovereign promoted risk-appetite during the session. European equities traded higher with particular strength seen in financials after European officials dismissed a suggestion by the IMF's chief Lagarde on a mandatory recapitalisation of European banks. Elsewhere, weakness in the USD-Index provided support to EUR/USD, GBP/USD and commodity-linked currencies, however EUR did come under some pressure following lower than expected German states' CPI data. In other forex news, weakness in CHF was observed across the board, however no confirmation of any intervention has surfaced. Meanwhile, according to a document, Finland has proposed the creation of a Luxembourg-based company to hold Greek assets as security for new loans to Greece. The document further said that in case of a Greek default on the EFSF loans, ownership of holding company shares would transfer to the member states.
Moving into the North American open, markets look ahead to economic data from the US in the form of personal income/spending, core PCE and pending home sales. In fixed-income, another Fed's Outright Treasury Coupon Purchase operation in the maturity range of Nov'18-Aug'21, with a purchase target of USD 2.75-3.5bln is also scheduled for later.
Asian Headlines:
Yoshihiko Noda won party vote to become the next prime minister of Japan. Noda received 215 votes, whereas Kaieda only received 177 votes. In other news, the Japanese government should never discuss making the BoJ directly underwrite government debt, according to Japan’s economy minister Yosano. (Sources/RTRS)
US Headlines:
Hurricane Irene knocked out power and flooded some of lower Manhattan before being downgraded to a Tropical storm on Sunday morning. Meanwhile, according to New Jersey governor, Chris Christie, the damage from Hurricane Irene could reach tens of billions of dollars. (RTRS/Sources)
EU and UK Headlines:
German Chancellor Merkel said she was sure that her coalition MP’s would back measures to increase the powers of the EFSF in next month’s Bundestag vote. Additionally, the finance minister Schaeuble said parliament can decide the scope of its role in determining future Eurozone aid. Meanwhile, the CSU coalition party, allies of Merkel’s CDU, want Germany to uphold the EU’s no-bailout rule, saying that Eurozone countries which notoriously fail to fulfil debt criteria should be banned and has drawn up a position paper to that effect. (Tagesspiegel/Focus magazine/Der Spiegel/RTRS)
In other news, Moody’s said Spain’s proposed fiscal rule is credit positive for the sovereign, adding that it will consider proposed fiscal rule as a factor in downgrade review. Moody’s further said that it would have been better to include maximum allowable deficit in Spain constitution, and Spain proposal should ensure continued ECB support. (Sources)
• German CPI - Bavaria (Aug) Y/Y 2.2% vs. Prev. 2.3%
• German CPI - North Rhine West. (Aug) Y/Y 2.3% vs. Prev. 2.7%
• German CPI - Brandenburg (Aug) Y/Y 2.1% vs. Prev. 2.2%
• German CPI - Hesse (Aug) Y/Y 1.9% vs. Prev. 2.2%
• German CPI - Saxony (Aug) Y/Y 2.4% vs. Prev. 2.5% (RTRS)
• German 12-month Bubill auction for EUR 2.479bln, bid/cover 2.4 vs. Prev. 1.80 (yield 0.549% vs. Prev. 1.251%) (RTRS)
EQUITIES
European equities traded higher with particular strength seen in financials after European officials dismissed a suggestion by the IMF's chief Lagarde on a mandatory recapitalisation of European banks. Positive comments from German Chancellor Merkel on her coalition's support towards enhancing the power of the EFSF, together with comments from Moody's that the Spanish proposed fiscal rule is credit positive for the sovereign promoted risk-appetite during the session. It is worth noting that owing to a Bank Holiday in the UK, the FTSE-100 index is not trading today. Moving into the North American open, equities continue to trade higher with utilities and industrials as the best performing sectors.
FX
Weakness in the USD-Index provided support to EUR/USD, GBP/USD and commodity-linked currencies, however EUR did come under some pressure following lower than expected German states' CPI data. In other forex news, weakness in CHF was observed across the board, however no confirmation of any intervention has surfaced.
COMMODITIES
WTI crude futures traded higher during the European session helped by weakness in the USD-Index.
Oil & Gas News:
• A natural gas pipeline from Libya to Italy has been repaired, paving the way for resumed shipments according to a Libya rebel spokesman. In related news, Libya’s largest oil refinery, Ras Lanuf, is intact and staff are preparing to restart operations according to the general manager.
• Iran’s government plans to sell seven of its nine oil refineries by March 2012.
Geopolitical News:
• Libyan rebel forces were converging on Gaddafi’s hometown of Sirte after they rejected Gaddafi’s call for mediation talks during the weekend.
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Europe financial stocks rallied after European officials ignored IMF saying banks need to recapitalize.
Its the biggest crack party in world history!
What is your problem? You expect Markets to go one
direction all the time, no matter what happens?
Summer correction almost over, be prepared to keep
whining another 5-6 month about Market going higher :)))
Then where do you expect the DXY in 6 mos?
Fair to say between 73 and 77, all depends on EZ
Cause Euro represents 57.6% of DXY, that's why Dollar
won't go much lower, as many here thinks.
Whats your problem? Its that youre stock centric.
And I dont 'whine' about anything, I 'mock' people like you who think $30 trillion monetized into 2,000 DOW points is a good deal. BTW my gold and silver holdings from $350 and $4 makes me laugh more than anyone holding equities by far.
if the euro markets accounted for the financial news out this weekend they should be in uber sale mode...but I guess I'm just way tooooo negative!
Next up, Hurricane Katia:
http://www.nhc.noaa.gov/refresh/graphics_at2+shtml/084125.shtml?5-daynl?...
Only relevant data today USD weaker, therefore stocks higher.
Chart showing only 48% of American youth are employed.
http://goldandsilverlinings.com/?p=1583
What about the remaning 52%, are they full time employed or flipping burgers at McDonalds 4 hrs a day?
MBA's fresh out of college in line for Walmart restocker jobs or McDonalds part time min wage.
We're saved! Kruger is new WH chief econ. And Japan has a new prime minister. And Greek banks are merged. Ahhhh. Now who was saying we've got a crisis....
:)
And now for the really important news:
Official records say Onyango Obama, 67, was picked up outside the Chicken Bone Saloon in Framingham, Massachusetts, at 7.10pm on August 24. Police say he nearly crashed his Mitsubishi 4x4 into a patrol car, and then insisted that the officer should have given way to him. A report filed with the Framingham District Court said that a breathalyser at the police station registered his blood alcohol at 0.14mg/100ml of blood, above the state limit of 0.08mg.
http://www.theaustralian.com.au/news/world/barack-obamas-uncle-has-been-...
http://www.youtube.com/watch?v=t3Xl0L21PjU&feature=uploademail
Uploaded by TheRealNews on Aug 29, 2011
Michael Greenberger (former Chief of Staff to Brooksley Born): Secret deals with CFTC staff led to futures markets with 80% speculation
All market moves since DOW 6,500 happen after hours/premarket.
Fins: "Santorini looks nice, just sign your secured loan app here Mr. Papandreou"
Where are all the shitheads that said Irene was a nuthin' burger... Just disappointed NYC wasn't completely flooded out?
Why don't you guys head to upstate NY and New England and tell those folks it was nothing...
According to the Washington Post, power outages from Irene "exceeded expectations" of Mid-Atlantic utilities, including the second-largest number of outages in Dominion Resources' history (Virginia). It is exactly as predicted: a re-run of Isabel which was a big mess in VA/MD.
Numerous schools, county governments, businesses etc. closed today in the DC metro due to power outages.
New York being spared from utter destruction isn't much of a story. Let's forget NYC.
When the waters finally clear, Irene will be one of the worst hurricanes in terms of damage to make landfull in the US...
Ber-shankie must look at Zero-Headge and just laugh his ass off. He has won again.
Weak people like Merkel are the reason strong people like Hitler rise up and become dictators in Germany.
Hitler came to power under the nationalist banner. Germany first and screw everyone else. Germans rallied behind him.
Merkel is a globalist with no loyalty to Germany. Eventually the German people will see it and rally behind a rising star nationalist as yet unknown.