- German newspaper reports that all Landesbanks passed stress test
- Microsoft better, Amazon worse than street forecasts, as we come towards the latter part of the reporting season
- Australian Q2 Import Prices +1.9% q/q/ Q2 Export Prices + 16.1% – strong numbers provide good economic support
- SEC Breaks Impasse With Rating Firms; the new financial reform bill regards bond-ratings firms as “experts” and holds them liable for the quality of their ratings
- Andy Xie, Shangai economist argues in this FT article that ‘more stimulus won’t stop Asia’s rise’
- Bank of Ireland & Allied Irish Banks also said to be a thumbs up for the stress test
- Japanese Minister Arai on the reuters wires
Yet again the Asian market falls into a lull waiting for europe to give the market impetus with the results due on banks’ stress tests
Early Asia we thought we may have a risk-on session as the Nikkei showed a positive start after the overnight positive reporting particularly by Microsoft and the stronger close of the S&P.
It was not to be and cautious longs in the JPY crosses were eased through the session but without fanfare and without any news or serious flows to create interest.
EUR/USD ranged 1.2884/18 and EUR/JPY somewhat more exciting 111.78/112.68 as it followed the USD/JPY drift from a high of 87.24 down to a low of 86.73
EUR/USD orders are scarce outside 1.2750/1.3050 at the moment and I suspect we may see both sides tested tonight; EUR/JPY has heavy sellers reported at 113.30/50 including sovreigns and good stops above and more above 114.00
USD/JPY buy orders support at 86.30/40 and sovreigns below at 86.00; corporate sell orders reside on a test of 87.50 with stops above 87.65
CABLE has traded quietly 1.5251/91 and we hear large stops above 1.5350
After a well-bid overnight the AUD/USD raged 0.8903/51 and AUD/JPY 77.22/78.08 currently they trade 0.8919 and 77.47
GOLD 1195.70 in the middle of a $5 range and OIL (light crude) 79.15