On Tuesday Spanish central bank sold €4.94 bn ($6.51 bn) of 12 and 18-month notes, more than the Treasury had intended to attract. Central bank sold €3.44 bn 12 month notes at an average yield of 4.05%, compared to 5.02% in November. 18-month bonds created average borrowing cost at 4.2%, or 1 percentage point less than in November.
US retail sales increased less than expected last month, according to official data. The indicator increased by 0.2% on a seasonally adjusted basis in November as compared to 0.6% previously expected, reported the U.S. Census Bureau. On the yearly basis, retail sales rose 6.7% last month after 7.5% increase in October.
Yearly UK CPI for November was in line with the expectations at the level of 4.8%, slightly lower than the October result of 5.0%. During the afternoon trade FTSE 100 climbed 0.94% or 50.8 points to 5,478.66. On the upside the index was boosted by mining and energy companies, as Petrofac Ltd gained 6.19% and Essar Energy added 3.19%. Randgold LTD ascended 1.95% while Royal Dutch surged 1.97%. On the downside was Whitbread PLC tumbling 4.6% after renewed trade statistics.
Official SNB exchange rate for EUR/CHF is at CHF 1.2352 today; 3-month LIBOR CHF remains at 0.05% (within target range of 0.00-0.25). Yields for 10-year Swiss Confederation bonds declined to 0.77% today. SMI stock index has gained 0.31% since opening bell, and is currently fluctuating around 5765 points.
Japan’s Nikkei Stock Average tumbled 1.17% or 101.01 points to 8,552.81 on Tuesday as Fitch and Moody’s sceptically evaluated the outcome of previous week’s EU summit. Exporters, including car makers and technology stocks, led the drop in the index. Sony Corp. lost 2.6% and Chiyoda Corp traded down 4.68%. Honda Motor Co. declined 2.9% and Mitsubishi Motor dropped 2.17%. On the upside was Olympus Corp. which gained 5.38%.
Daily maximum: 1.3236
Daily minimum: 1.3162
The pair committed a correction after the German ZEW Economic Sentiment declined less than expected, reaching -53.8 versus estimated -56.1 while Spain sold more debt than it had planned. The forecast mean has been touched.
Daily Resistance: 1.3324; 1.3461; 1.3542. Daily Support: 1.3106; 1.3025; 1.2888. Daily Bias: Bearish.
Daily maximum: 102.98
Daily minimum: 102.43
The common European currency inched lower today, crossing the daily target at 102.98 as investors favour buying Japanese yens on EU debt concerns.
Daily Resistance: 103.53; 104.34; 104.79. Daily Support: 102.27; 101.82; 101.01. Daily Bias: Strongly bearish.
Daily maximum: 1.5629
Daily minimum: 1.5566
The British pound rebounded today after the Retail Price Index rose more than expected, inspiring optimism among investors and causing the market daily target at 1.5589 to breach.
Daily Resistance: 1.5647; 1.5713; 1.5768. Daily Support: 1.5526; 1.5471; 1.5405. Daily Bias: Neutral.
Daily maximum: 77.96
Daily minimum: 77.64
USD/JPY is trading in the 77-78 price channel as investors remain concerned over the European long-term economic prospects, thus the daily forecast mean at 77.83 has been pierce.
Daily Resistance: 78.09; 78.28; 78.57. Daily Support: 77.61; 77.32; 77.13. Daily Bias: Neutral.
Daily maximum: 0.9386
Daily minimum: 0.9342
The pair continues its rally as investors turn positive before the FOMC Statement release today. Meanwhile, the daily mean at 0.9346 has been successfully breached.
Daily Resistance: 0.9424; 0.9476; 0.9565. Daily Support: 0.9283; 0.9194; 0.9142. Daily Bias: Strongly bullish.