Daily Market News 23 June 2011
Yesterday's Market Movers
- EU Industrial New Orders came out with a decent growth in April but grew less in comparison with the expectation. Euro dropped off a little bit but again climbed back to the day high 1.4442 before the US market opening bell, showing a strong preference from the investors.
- Euro then stopped its increase when the Consumer Confidence for June registered at -10, lower than the previous month. In spite of this, GBP/EUR has stabilised around 1.12, continuing the downwards trend and waiting for a further stimulus.
- Sterling also lost ground against the US Dollar. The BoE minutes showing a 2-7 vote in favour of keeping interest rate as they are in the UK also prompted concerns of a weak economy, Sterling trade-weighted index dropped to 8-mth low?.
- In the US, we had the interest rate unchanged at 0.25% as expected. However, we have not expected the following Fed’s Press Conference talking down of the economy, which caused the stock market shrink and risk aversion return.
Today's Market Movers
- PMI Manufacturing and PMI Services from Germany and EU are both to be released in the morning. Overall for the month, the figures seem to be not positive for the Euro.
- There is no data in significant from UK. From the US, we will have New Home Sales result in May. The expectation is a decline from the previous month. Combined with the whole economy negative outlook from last night, dollar might go further up due to the risk aversion.