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Daily US Opening News And Market Re-Cap: September 19

Tyler Durden's picture




 

From RanSquawk

  • Markets remained nervous ahead of a teleconference between Greece and the Troika, which has already been delayed until 1700BST today
  • ECB’s Liikanen said that Eurozone growth risks are substantially on the downside, adding that sovereign debt crisis is not just individual countries' problem, but is a systemic Eurozone crisis
  • According to a study by the DIW research institute, Germany's 10 biggest banks need EUR 127bln of additional capital
  • According to Japan’s Economic Policy Minister, the country may announce outlines of measures to counter the strong JPY as early as tomorrow
  • Moody's said it would finish reviewing Italy's sovereign credit rating for a possible downgrade within the next month, adding that Italy faces a challenging economic and financial environment

Market Re-Cap

European equities traded lower amid risk-aversion as concerns surrounding the Eurozone debt persisted, while focus remained on Greece. Underperformance was observed in financials partly due to a funding-shortage faced by Greek banks, together with a study by the DIW research institute suggesting that Germany's 10 biggest banks need EUR 127bln of additional capital. Markets remained nervous ahead of a teleconference between Greece and the Troika, which has already been delayed until 1700BST today. Downbeat comments from ECB's Liikanen on the Eurozone growth allied with a downgrade of the German 2012 growth by the IW research institute further dented the appetite for risk. Elsewhere, strength in the USD-Index weighed on commodities, which resulted in underperformance in basic materials and oil & gas sectors. In the forex market, EUR traded lower across the board on the back the ongoing Greek debt fears, whereas strength in the USD-Index weighed upon EUR/USD, GBP/USD and commodity-linked currencies. Also, JPY came under pressure following comments from Japan's Economy Policy minister overnight that Japan may announce measures to counter the currency's strength as early as tomorrow.

Moving into the North American open, the economic calendar remains thin, however markets will keep a close eye on the outcome of the teleconference between Greece and Troika. In fixed income, there is another Fed's Outright Treasury Coupon Purchase operation in the maturity range of Mar'13-Mar'14, with a purchase target of USD 0.5-1bln.

Asian Headlines:

According to Wu Xiaoling, a former deputy central bank governor, China should refrain from boosting credit and fiscal spending again as stimulus measures to avoid fuelling inflation and pushing up government debt. (RTRS)

**Note: Today is a Japanese market holiday.

US Headlines:

A White House official said President Barack Obama is expected to seek a new base tax rate for the wealthy to ensure that millionaires pay at least at the same percentage as middle income taxpayers. The so-called "Buffett Rule” is due to be unveiled Monday. (Sunday Telegraph) However, US Republicans criticised President Obama’s proposal for a new tax on millionaires, calling it ‘class warfare’ and predict it will face heavy opposition in congress. (RTRS)

In other news, Fed Bernanke has asked Philadelphia Fed President Clarles Plosser and Chicago Fed President Charles Evans to work with Vice Chairwoman Janet Yellen on how the Fed can better explain its economic goals to the public, citing people familiar with the matter. The main agenda would be to detail the changes in unemployment and inflation it would take to make the central bank turn away from its low interest-rate policy. (WSJ)

EU and UK Headlines:

According to an article in the Kathimerini newspaper, Greece plans to supply banks with loan guarantees of up to EUR 30bln to ease their liquidity squeeze. (Kathimerini)

•    UK Rightmove House Prices (Sep) M/M 0.7% vs. -2.1%
•    UK Rightmove House Prices (Sep) Y/Y 1.5% vs. -0.3% (RTRS)

EQUITIES

European equities traded lower amid risk-aversion as concerns surrounding the Eurozone debt persisted, while focus remained on Greece. Underperformance was observed in financials partly due to a funding-shortage faced by Greek banks, together with a study by the DIW research institute suggesting that Germany's 10 biggest banks need EUR 127bln of additional capital. Markets remained nervous ahead of a teleconference between Greece and the Troika, which has already been delayed till 1700BST today. Downbeat comments from ECB's Liikanen on the Eurozone growth allied with a downgrade of the German 2012 growth by the IW research institute further dented the appetite for risk. Elsewhere, strength in the USD-Index weighed on commodities, which resulted in underperformance in basic materials and oil & gas sectors. Moving into the North American open, equities continue to trade lower, with basic materials and oil & gas as the worst performing sectors.

FX

EUR traded lower across the board on the back the ongoing Greek debt fears, whereas strength in the USD-Index weighed upon EUR/USD, GBP/USD and commodity-linked currencies. Also, JPY came under pressure following comments from Japan's Economy Policy minister overnight that Japan may announce measures to counter the currency's strength as early as tomorrow.

COMMODITIES

WTI and Brent crude futures traded lower during the European session weighed upon by strength in the USD-Index together with the Eurozone debt concerns.

Oil & Gas News:

•    Kuwait and the UAE are pumping more than their OPEC quotas and aim to maintain output, oil officials from the countries said.
•    The OPEC secretary general said IEA has assured that OPEC will not release more oil stocks and they have agreed to improve cooperation over the oil market.

Geopolitical News:

•    China urged regional powers on Monday to revive moribund nuclear disarmament talks with North Korea, with its foreign minister Yang Jiechi defending Beijing as an honest broker seeking to defuse confrontation with Pyongyang.
•    Tension is prevailing on the streets of the Yemeni capital, Sanaa, a day after at least 26 anti-government protesters were shot dead and hundreds wounded by troops and gunmen loyal to President Ali Abdullah Saleh.
•    Troops loyal to Libya's interim leaders have been advancing towards the coastal town of Sirte, Col Gaddafi's birthplace and a stronghold of his loyalists.

 

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Mon, 09/19/2011 - 08:09 | 1683975 oobrien
oobrien's picture

Good citizens of Metropolis!

Hope is dead.

World slavery is next.

Even Thor can't save our sorry asses.

My advice?

Desert the ship.  And fast!

http://geraldcelente.proboards.com

Mon, 09/19/2011 - 08:09 | 1683978 janus
janus's picture

is bst the same as gmt?

Mon, 09/19/2011 - 08:13 | 1683983 Broomer
Broomer's picture

Disclaimer: I'm saying this out of my ass.

It might be that one of them is not adjusted for daylight saving time?

Mon, 09/19/2011 - 08:17 | 1683990 janus
janus's picture

yeah, not a bad guess -- when you consider the fuckedupedness of global time zones.

why do people screw with acronyms?  i mean, GMT is and always should be GMT -- you learn to figure it where ever you are in the world; and then some asshole's gotta go and throw in BST...throwin my whole equinamity outta kilter.

Mon, 09/19/2011 - 08:20 | 1683992 Stoploss
Stoploss's picture

BST = Bullshit Standard Time ;)

All i know is, if German banks are in need of capital right now, the shit is worse than the lies are able to cover.  I think this is where the euro wheels start to come off the buggy.

Mon, 09/19/2011 - 08:24 | 1683995 Construct
Construct's picture

''According to Japan’s Economic Policy Minister, the country may announce outlines of measures to counter the strong JPY as early as tomorrow''

Why not allow it to appreciate? Why deny their own citizens the right to enjoy the fruits of their labor? Japan has stagnated for nearly 30 years now.

Mon, 09/19/2011 - 08:32 | 1683998 Zero Govt
Zero Govt's picture

"ECB’s Liikanen said that Eurozone growth risks are substantially on the downside, adding that sovereign debt crisis is not just individual countries' problem, but is a systemic Eurozone crisis"

Oh Dear, the horse appears to have bolted doesn't it Mr Liikanen?

The Regulators, Govt over-sight and warehouses full of stacked dusty regulations appears to have (all) missed the massive, obvious to all but the retarded, crank up of uber-leverage and Eurozone systemic risk. Wasn't that your Regulators job? Indeed it was Govts greedy out-stretched hands wanting "more, more, more" that helped create it. The fox was 'guarding' the hen house, how silly, how stupid, what a giant shot in the foot!

And what has the now just awoken Mr Liikanen of the ECB discovered? Maybe that the ECB has been helping to dig this debt hole deeper and deeper for the past 2 years, 'solving' a debt crisis with more soft pandering zero interest debt, bending over backwards to pervert the market pricing coreectly and, just like utterly corrupt and moronic Federal Reserve, do anything but face the music (reality).

So what does super-retard Mr Liikanen want for his dumber-than-mud statement of the bleedin obvious, a medal???

Give that man a bullet

Mon, 09/19/2011 - 08:35 | 1684012 the not so migh...
the not so mighty maximiza's picture

so what do you really think?,,,  ahahahahahahah

Mon, 09/19/2011 - 09:00 | 1684070 Smiddywesson
Smiddywesson's picture

"ECB’s Liikanen said that Eurozone growth risks are substantially on the downside, adding that sovereign debt crisis is not just individual countries' problem, but is a systemic Eurozone crisis"

Translation:  We decided that we are all going bankrupt together, and that includes you too, Germany, so don't get any clever ideas about backing out because nobody gets out of here alive.

Mon, 09/19/2011 - 08:36 | 1684014 msmith
msmith's picture
USDCAD bullish price action. A large move higher could be developing. http://bit.ly/pYLx6u
Mon, 09/19/2011 - 09:49 | 1684265 Georgesblog
Georgesblog's picture

Disclaimer: I just started my 2nd cup of coffee, so don't expect too much. Just off the top, this whole Eurozone soap opera is getting old. Just cut to the chase. I know this thing will come down to who has gold and who doesn't. Prople can say that gold is just another commodity. Really? Everybody should get in line early at the soup kitchen. Sometimes there isn't enough food to go around. I've been homeless 7 times in 30 years. In that situation, everybody finds out that what they thought they knew, made them a dumbass. Live and learn. I did.

http://georgesblogforum.wordpress.com/2011/07/21/the-island-of-uncle-sam/

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