France and Germany are emphasizing the need of stronger economic ties among common currency countries and pushing for stricter enforcement of budget cuts to stop debt crisis escalation. President Sarkozy called for stronger discipline and penalizing countries that do not follow fiscal rules. German Chancellor Merkel reminded that ECB should not accept political pressure.
On Friday S&P 500 benchmark index closed at 1,244.28, 0.02% or 0.3 points down. Nevertheless index gained 7.4% on weekly basis as Fed cut dollar borrowing rates for European banks and China announced monetary policy easing. For S&P 500 Index last week was the best since March 2009. Banking stocks were among main gainers. Morgan Stanley advanced 6.96%, J. P. Morgan Chase & Co. added 6.14% while Citigroup Inc. edged up 4.37%. Tenet Healthcare Corp. and Big Lots gave most negative contribution to the index declining 10.68% and 8.68% respectively.
The number of highly qualified staff for one vacancy in the City of London hit the record of the last two years, reported financial services recruitment firm. At the moment there are 5 professionals for each vacancy as compared to 1.7 candidates in the beginning of 2010, according to Astbury Marsden. Banks are decreasing jobs eyeing the global slowdown of the UK economy and spreading Eurozone crisis.
Swiss Market Index swung between rewards and losses as biggest Swiss banks extended gains on approved Italian austerity measures while Adecco, the world’s biggest recruiter of part-time workers, declined. Today Credit Suisse climbed 1.6% reaching 23.24 Swiss francs while UBS AG advanced 1.3% to 11.51 Swiss francs. Adecco lost 2.7% to 39.25 francs.
Japan’s bonds gained as their yields fell from a 4-month r ecord high as uncertainty across Europe boosted demand for sheltering assets. Japanese benchmark 10-year notes dropped 3 basis points reaching 1.045% while 20-year borrowing costs declined 2.5 basis points attaining 1.775%. Takeshi Minami, Norinchukin Research Institute’s chief economist expects a further increase in demand for Japan’s notes
Daily maximum: 1.3486
Daily minimum: 1.3399
The market mean at 1.3427 was successfully pierced today on fresh hopes the EU debt crisis will be resolved in the near term as the German Chancellor Angela Merkel and the French president Nicola Sarkozy met today to discuss the possible solutions to the financial turmoil in Europe.
Daily Resistance: 1.3513; 1.3623; 1.3699. Daily Support: 1.3327; 1.3251; 1.3141. Daily Bias: Neutral.
Daily maximum: 104.98
Daily minimum: 104.49
The single European currency inched higher today as investors are optimistic regarding the potential EU debt crisis solution, causing the market participants’ mean at 104.69 to breach.
Daily Resistance: 105.42; 106.34; 107.00. Daily Support: 103.84; 103.18; 102.26. Daily Bias: Bullish.
Daily maximum: 1.5725
Daily minimum: 1.5656
The British pound continued its recovery after the release of Price Manufacturing Index (PMI) at 52.1 – more than expected, leaving the market mean at 1.5622 intact today.
Daily Resistance: 1.5689; 1.5782; 1.5839. Daily Support: 1.5539; 1.5482; 1.5389. Daily Bias: Neutral.
Daily maximum: 78.09
Daily minimum: 77.85
The American dollar advanced today as investors sold safe-haven yens against USD on hopes the EU debt crisis solution will be revealed this week. As a result, the market participants’ target at 77.91 has been pierced.
Daily Resistance: 78.12; 78.30; 78.52. Daily Support: 77.72; 77.50; 77.32. Daily Bias: Strongly bullish.
Daily maximum: 0.9231
Daily minimum: 0.9165
USD/CHF is trading in a flat trend as the US m/m factory orders released at -0.4% and ISM Non-Manufacturing PMI at 52.0, which are less than expected. Thus, the market mean (0.9190) remained untapped today.
Daily Resistance: 0.9260; 0.9318; 0.9393. Daily Support: 0.9127; 0.9052; 0.8994. Daily Bias: Neutral.
Dukascopy carries on interviewing the experts from Scandinavia. Today Anders Löflund, Professor of Finance at Hanken School of Economics in Helsinki, unpicks for us the economic situation in Finland, being a part of the Eurozone, and reflects on how the potential breakdown of the euro could shake the Scandinavian countries.
While the investors speculate on the Eurozone currency’s dependence on the sovereign debt crisis, Dukascopy decided to have a look at the Scandinavian currencies who maintain their “safe-haven” status for quite a long time now and, according to IMF, are still in a very good shape. Today we have put the Norwegian Krona under scrutiny with the help of an expert in macroeconomics and monetary policies, Professor Kjetil Storesletten.
France, Germany to Propose New EU Treaty
France and Germany have agreed on a series of reforms to address the euro zone sovereign debt crisis that will be presented to EU President Herman Van Rompuy on Wednesday, French President Nicolas Sarkozy said after a meeting with German Chancellor Angela Merkel on Monday.
US factory orders fall for second straight month
Companies decreased their overall orders to U.S. factories in October for the second straight month, evidence that the economy remains weak despite other signs of improvement.
Japanese Stocks Advance After Italy Premier Announces Austerity Program
Japanese stocks extended the biggest weekly gain in two years after Italy’s premier announced a 30 billion-euro ($40 billion) plan to cut debt, boosting optimism Europe’s crisis would be contained.