MORNING BRIEFING: Asia mostly up, but Japanese Nikkei in the red

What’s new:
Asia: Most Equities modestly up
Japan: Ruling party loses majority in upper house election
Euro: Retraces some of its previous gains
GBP: Worries that Public sector debt could be worse weigh on the pound
Financials: SEB sells German retail banking ops to Santander
EU: Finance Ministers due to meet today
US: Earnings session awaited

Today:


Rates in Asia and Indices:
EURUSD: 1.2647 - 1.2577.
USDCHF: 1.0599- 1.0547.
GBPUSD: 1.5078 - 1.4959.
EURJPY: 112.39 – 111.68.
USDJPY: 89.15 – 88.57.
DowJones: 10’198.03 +0.58%
NASDAQ: 2'196.45 +0.97%
S & P 500: 1'077.96 +0.72%
Nikkei: 9’573.48 -0.12%
Shanghai: 2'492.54 +0.87%
Gold: $ 1'208.65
Crude Oil: $ 75.31

 
Comments:

Most Asian equities managed some modest gains earlier this morning on the back of registered growth in china’s exports as per data released during the weekend.  Japan’s Nikkei however was in the red as Japan’s Ruling party loses its majority in an election in the upper house of parliament boosting political uncertainty due to the possibility of political deadlocks and the constrained ability to properly deal with deflation and huge budget deficit. On the back of this news the JPY was losing ground against the USD.

Euro retraced some of last week’s gain this morning in what was probably a corrective move. Even the British pound was losing around 0.23% at the time of writing - on a report from the centre of Economics & Business Research and the Institute of Chartered Accountants that UK public sector debts could be worse than the official government figures.

Swedish Bank SEB reportedly sold German retail banking operations to Banco Santander for EUR 555M, to invest its corporate and Institutional business.

EU finance ministers are due to meet today – more news about the stress tests and the European Financial Stability Fund is likely to come out. US Earnings session ahead this week even though popular view was that strength of recovery was slowing – some market participants still anticipating favorable earnings reports.

Good day,

Rudolf Muscat
Trading desk

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