Daily US Opening News And Market Re-Cap: June 28

From RanSquawk

  • ECB's Trichet reiterated that the ECB is in a strong vigilance mode, adding that the ECB will not participate in a Greek debt plan
  • EU's Almunia said the Greek crisis may seriously impact growth in Europe and Europe is in a period of acute crisis
  • According to Eurozone sources, up to 15 of 91 banks are expected to fail the EU wide stress tests
  • BoE’s Tucker said the BoE should not just cast aside BIS suggestion to raise interest rates

Market Re-Cap

Markets lacked any firm direction in today’s session as participants looked ahead to tomorrow’s key austerity vote in the Greek parliament. Comments from EU’s Almunia that the Greek crisis may seriously impact growth in Europe dented appetite for risk. Elsewhere, GBP came under pressure following a decline in final first quarter year-by-year GDP reading from the UK, however did receive some support on the back of hawkish comments from BoE’s Tucker. Moving into the North American open, markets look ahead to key US economic data in the form of consumer confidence and Richmond Fed manufacturing report. In fixed income, there is another Fed's Outright Treasury Coupon Purchase operation in the maturity range of Aug’18 – May’21, with a purchase target of USD 4-5bln, allied with USD 35bln 5-year Note auction.

Asia Headlines:

BoJ’s Governor Shirakawa said monetary policy conducted to address immediate inflation trends can cause bubbles and central banks need to make decisions bearing in mind their long-term effects. (Sources)
In other news, room for China to further tighten monetary policy has become small as inflation may peak in June or July. (China Securities Journal)

US Headlines

US Treasury Secretary Geithner is not expected to significantly shift the August 2nd date when the government will have exhausted all of its emergency measures to stave off default, a source familiar with the administration’s efforts said. Meanwhile, President Obama is confident Democrats and Republicans can cut a significant deal to trim the US deficit and increase its borrowing limit to avoid a damaging default, the White House said. (RTRS)
Fed’s Dudley said so-called bank stress tests must use scenarios that are “severe” in order to be “credible” and disclosure of the results must be “sufficiently granular” so that they can be readily analyzed. (Sources)
BarCap month-end extensions: US Treasury +0.06 years

EU and UK Headlines:

German CPI - North Rhine-West (Jun) Y/Y 2.5% vs. Prev. 2.3%
German CPI Hesse (Jun) Y/Y 2.1% vs. Prev. 2.0%
German CPI Brandenburg (Jun) Y/Y 1.9% vs. Prev. 1.9%
German CPI - Bavaria (May) Y/Y 2.1% vs. Prev. 2.1%
UK GDP Q/Q (Q1 F) 0.5% vs. Exp. 0.5% (Prev. 0.5%)
UK GDP Y/Y (Q1 F) 1.6% vs. Exp. 1.8% (Prev. 1.8%)
UK Current Account (GBP) Q/Q (Q1) -9.4bln vs. Exp. -4.7bln (Prev. -10.5bln, Rev. to -13.0bln) (RTRS)
BarCap month-end extensions: Euro Sovereign Index +0.06 years
BarCap month-end extensions: Sterling Index +0.22 years

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Daily Us Opening News