European shares opened higher after Christmas holidays, though trading volumes are predicted to be relatively low. Stoxx 600 gained 0.2% at 242.41, whereas France’s CAC 40 added 0.5% to 3,116.11. German benchmark DAX index surged 0.4% attaining 5,902.32. London markets stayed closed in prolonged holiday break.
The prices of real estate decreased more than predicted, said S&P/Case-Shiller group on Tuesday. S&P/Case-Shiller index of real estate value in 20 cities fell 3.4% in October compared to corresponding period last year. Economists surveyed by Bloomberg forecast a 3.2% decline. Index currently is down 32.1% compared to its top figure in 2006.
UK retail sales slumped on the Boxing Day – the major December sales day in the high street shops of London. Although the sales had been up by almost 22 per cent in comparison with the same period last year, they were flattened out by results of the sales day. Experts from Experian research agency claim that the post-crisis year has not been tremendous for the retailers.
Swiss UBS consumption indicator decreased in November, falling for the first time in the last three months. The indicator eased down by 0.09 points to 0.81 last month from 0.90 in October. Analysts claim the indicator was affected by lower prices and increased number of purchases made abroad. After the data release, the Swiss Franc appreciated against the USD with the pair USD/CHF edging down 0.1% to 0.9352.
India and Japan are expected to announce new currency swap agreement with the purpose to ease problems with liquidity. The agreement will allow two countries to swap currencies for the USD and use each other’s foreign-exchange reserves. The pact followed the growing volatility in currencies of both countries. The deal is likely to be concluded during Yoshihiko Noda’s, Japan’s PM, next visit to India due next week.
Daily maximum: 1.3083
Daily minimum: 1.3043
EUR/USD pierced the daily forecast mean at 1.3053 as the US home prices felt more than expected. Daily Resistance: 1.3087; 1.3127; 1.3158. Daily Support: 1.3016; 1.2985; 1.2945. Daily Bias: Neutral.
Daily maximum: 101.90
Daily minimum: 101.66
The shared European currency continued its recovery versus the Yen as investors expect the Christmas rally will make the European retailers benefit from it; thus, the daily forecast mean at 101.90 has been hit. Daily Resistance: 102.13; 102.40; 102.61. Daily Support: 101.65; 101.44; 101.17. Daily Bias: Bearish.
Daily maximum: 1.5697
Daily minimum: 1.5596
The British pound slumped today, crossing the market participants’ target at 1.5612 as investors consider the UK economic prospects gloomy for the next quarter. Daily Resistance: 1.5665; 1.5749; 1.5790. Daily Support: 1.5540; 1.5499; 1.5415. Daily Bias: Neutral.
Daily maximum: 78.02
Daily minimum: 77.80
USD advanced today as investors continued acquiring the US dollars against the yen on strong US consumer confidence. Daily Resistance: 78.17; 78.30; 78.39. Daily Support: 77.95; 77.86; 77.73. Daily Bias: Neutral.
Daily maximum: 0.9385
Daily minimum: 0.9333
The daily market forecast mean for USD/CHF (0.9360) has been breached as the American dollar advanced on sound US consumer confidence. Daily Resistance: 0.9387; 0.9415; 0.9441. Daily Support: 0.9333; 0.9307; 0.9279. Daily Bias: Neutral.
Italy to Kick the Cash Habit as Monti Cracks Down
The government on Dec. 4 reduced the maximum allowed cash payment to 1,000 euros from 2,500 euros.
US Republicans in climbdown on payroll tax deal
House of Representatives Republican Speaker John Boehner has agreed to accept a bipartisan deal to extend a payroll tax cut, in an abrupt Uturn.
China CIC sovereign fund to get $50 billion boost
China’s $410 billion sovereign wealth fund China Investment Corp. CIC.UL is set to receive additional funding of up to $50 billion, two sources with knowledge of the matter told Reuters on Friday.