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Daily US Opening News And Market Re-Cap: November 2

Tyler Durden's picture




 

From RanSquawk

  • Market talk that China may contribute towards the EFSF. Meanwhile, Japanese PM Noda said Japan will consider continued buying of EFSF bonds
  • According to an EFSF spokesman, the EFSF is putting off the sale of its 10-year securities
  • Weakness in the USD-Index boosted EUR/USD, GBP/USD and commodity-linked currencies
  • According to the German foreign minister, the Greek rescue plan cannot be renegotiated
  • Markets look ahead to the FOMC rate decision followed by Fed’s Bernanke press-conference

Market Re-Cap

European equities traded mixed during the session as market participants awaited clarity on the Greek debt situation. Early market talk that China may contribute towards the EFSF provided support to equities, however prices came under pressure after news emerged that the EFSF plans to delay its bond sale, together with lacklustre manufacturing PMI data from the Eurozone. In other news, after trading lower for a vast majority of the European session, Bunds received some strength following a successful Bobl auction from Germany, however market talk of asset re-allocation from fixed income into equities weighed further on Bunds. In the forex market, the USD-Index traded lower ahead of the FOMC rate decision later in the session, which supported EUR/USD, GBP/USD and commodity-linked currencies, whereas GBP received additional support following the release of higher than expected Construction PMI data from the UK.

Moving into the North American open, the FOMC rate decision followed by Fed's Bernanke press-conference will be keenly watched by market participants. Markets also look ahead to economic data from the US in the form of ADP employment change and the DOE oil inventories report. In fixed income, 3-, 10- and 30-year quarterly refunding announcement, together with BoE's Gilt purchase operation in the maturity range of 2022-2036 are also scheduled for later in the session.

Asian Headlines:

BoJ board member Shirai said that downside risks to Japan’s economy were somewhat greater than the upside risks due to uncertainty about Europe’s debt woes. In other news, BoJ offered USD to banks in market operations for the first time since July last year, a sign that market strains from Europe’s sovereign debt crisis may be broadening. (RTRS)

US, EU and UK Headlines

According to latest reports, the Fed is poised to cut growth forecasts for the US economy and Fed is likely to lower projections for growth through 2013. The Fed is likely to predict unemployment could remain above 7% through to 2014. (WSJ)

In other news, PIMCO’s Bill Gross said US banks have not done enough to ensure that they are well capitalised and getting back to a system where retail and investment banking are separated would be attractive in terms of reform. (RTRS)

Elsewhere, the Irish finance minister said he does not expect the new ECB head to cut main refinancing rate at the first meeting, adding that he expects the new head to cut rate by 25-50 basis points before end of the year. (Sources)

•    US MBA Mortgage Applications (Oct 28) 0.2% vs. Prev. 4.9%
•    US Challenger Layoffs (Oct) M/M 42.7K vs. Prev. 115.7K (RTRS)

EQUITIES

European equities traded mixed during the session as market participants awaited clarity on the Greek debt situation. Early market talk that China may contribute towards the EFSF together with market talk of asset re-allocation from fixed income into equities provided support to equities. However, prices came under pressure after news emerged that the EFSF plans to delay its bond sale, together with lacklustre manufacturing PMI data from the Eurozone. Moving into the North American open, equities continue to trade mixed, with telecommunications and health care as the worst performing sectors.

The USD-Index traded lower ahead of the FOMC rate decision later in the session, which supported EUR/USD, GBP/USD and commodity-linked currencies, whereas GBP received additional support following the release of higher than expected Construction PMI data from the UK.

In other news, BoJ will refrain from draining funds that entered the market through the government’s JPY selling intervention on Monday, a central bank source said. (RTRS)

COMMMODITIES

WTI and Brent crude futures traded higher in early European trade aided by weakness in the USD-Index ahead of the FOMC rate-decision and DOE Inventories data later in the session.

Oil & Gas News:

•    According to the OPEC Secretary General oil prices will not fall below USD 100 per barrel before year end.
•    Goldman Sachs has recommended investors to buy New York Crude contracts for December 2012 as supply gluts clear at the delivery hub of Cushing, Oklahoma and in the US Midwest.

 

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Wed, 11/02/2011 - 08:18 | 1836138 oh_bama
oh_bama's picture

don't be too bearish guys!

SHIBOR LOST 139 BPS OVER NIGHT! THIS IS A DECISIVE MOVE!!

I am sure zerohedge won't report it as zerohedge only report it on its way UP!!

 

Wed, 11/02/2011 - 08:24 | 1836157 paarsons
paarsons's picture

I'm surprised shit isn't more down today after Greece announced the refuremdum.

But what the fuck do I know?

http://fucklloydblankfein.blogspot.com

Wed, 11/02/2011 - 08:20 | 1836147 msmith
msmith's picture

A bit more "risk off" expected today.  Here is a look at the SPX, DX, and TNX.   http://bit.ly/rTM48H

Wed, 11/02/2011 - 08:26 | 1836161 Saxxon
Saxxon's picture

Again we wake up to queasy volatility.  As someone said on this board 2-3 years ago, this is not a bull, this is a mad cow market.  It is not well and best steered clear of or traded in brief increments as it is just impossible to anticipate a trend or any other normal price action. 

Wed, 11/02/2011 - 08:36 | 1836181 Nobody special
Nobody special's picture

ESFS bonds... good as gold.  That's why Japan has such great faith they 'may' consider them.

Who believes this shit?

Wed, 11/02/2011 - 09:30 | 1836369 spanish inquisition
spanish inquisition's picture

Wait. is this the confirmation of a new China buy or the late print of an already discontinued rumor. It's all too fast and confusing to keep track of...

Do NOT follow this link or you will be banned from the site!