Daily Market Report 30/10/12

As the East coast of the US geared up for hurricane Sandy, investors appeared to be preparing in the same vain. Yesterday saw the dollar gain against many of its peers, whilst the currencies perceived riskier saw losses.

A second day of closure at the NYSE today was expected to show dollar strength, a condition amplified by the disparity in opinions between Greek leaders and euro ministers; however an early morning rally in European stock markets enabled confidence in the region.

German Finance Minister Wolfgang Schaeuble rebuffed Greek hopes of a debt restructuring deal, whilst frustration over Spain’s reluctance to apply for a bailout is showed signs that the safety-net promise of the ECB’s bond buying scheme was tempering.

The day’s main loser was surprisingly the pound. Despite the positive GDP data from the UK last week, investors took a pessimistic view that the economy will fall back as the effects of the Olympics fade away, causing losses against most of its counterparts.

ECB president Mario Draghi speaks today, whilst Spanish GDP data, German unemployment and Italian bond sales will all be important announcements. Any surprise positive news could see euro strength. Whilst overnight the Bank of Japan announced further stimulus of 11tn yen, a move that was deemed insufficient as investors wanted more to boost the ailing economy.

Key Announcements Today:
  • 05.46am – JPY – Monetary Policy Statement
  • 09.00am – EUR – Spanish GDP q/q: contracts by 0.3% slightly better than expectations
  • 09.00am – EUR – ECB President Mario Draghi Speaks
  • 09.55am – EUR – German Unemployment Change: expected increase by 10k
  • Tentative – EUR – Italian 10y Bond Yield
  • 12.00pm – GBP – CBI Realised Sales: expected increase

 See previous Daily Market Reports