From the Desk of Lou Brien:
- Stocks were broadly higher in Asian trade overnight. The Nikkei led the way with a gain of 1.8% and the Hang Seng added 0.9%; but mainland China is closed for a holiday for the first few days of the week and Australia was off today for the Queen’s birthday celebration. Europe is generally higher; the Dax currently has a one percent gain and the Footsie is up by about a half percent. Spain’s IBEX has been trending lower for the last couple of hours after an early rally and is now down by one third of a percent. US stock futures are higher by about three quarters of a percent as I write.
- The Bank of Japan meets later today; no one expects any change in their 0.10% target rate to come from the Tuesday, local time, meeting.
- The May reading of Switzerland’s Producer and Import Price Index was +0.3% on a month on month basis, well above the -0.1% expectation; the annualized rate of +1.4% was also stronger than forecast.
- The euro is quite strong this morning. The single currency is back above the key dollar/euro level of 1.2134, it is currently up by about 120 pips at 1.2230. There does not appear to be any particular news driving the euro, maybe just a technical move.
- Greek and Spanish debt is wider by a five or ten basis points against German debt this morning. The EU Commission says there is no indication that Spain is preparing to ask for aid; there is no request from any EU member, they say and Spain’s Deputy Finance Minister Ocana says they have no plan to use EU aid. The comments are apparently in response to a report in the German press that the EU was readying an aid package for Spain.
To view this article at World Market Media click on the link below: http://www.worldmarketmedia.com/779/section.aspx/1816/post/5-things-to-read-before-trading-today
Disclosure: no positions