Daily review 05/06/12
Asian stock markets trade is conducted today (Tuesday) in slightly prices increase, as investors expect a response from the world's financial policy leaders of a fear from global slowdown, in light of four days of a prominent negative sentiment in markets.
Leaders of the G7 forum will discuss today about Europe's debt crisis, as investors continue to fear from the results of upcoming elections in Greece and from Spain's collapsed banking system.
Last night trading on Wall Street closed in a mixed trend as investors continued to respond to U.S. disappointing employment report for May (pointing to 69 thousand new jobs only) led to new speculation about a third bond purchases program (QE3).
However, according to U.S. data, the world's largest economic situation is not so grim: household debt totaled approximately $ 100 billion in the first quarter, more profitable banks in the country (increased financial results for first quarter 11th quarter in a row), and the faltering housing market continues to recover slowly but surely (four months of 2012 prices rose by 24% compared to last year).
In the background, continued concerns from Greece's leaving the Eurozone, through the collapse of the banking system in Spain to the slowdown in China - leading the sentiment.
Against that investors streamed to U.S. bonds, which carry a low yield of 1.5%.
Against this background, hope in Europe that the continent's leaders are about to agree soon on the establishment of permanent stabilization fund (ESM) - totaling about 500 billion euros.
The fund is expected to begin operating this month, according to reports of foreign agencies.
DOW 0.14% ↓ S&P 0.01%↑ NSDQ 0.46%↑
EUR / USD:
EUR/USD trading at -1.2528 an increase of 0.23% in writing.
The pair may find support at 1.2491 today low and resistance at- 1.2575 Tuesday high.
Meanwhile, the Euro gain strength against the British Pound and against the Japanese Yen, when the -EUR/GBP add a 0.13% to 0.8134 and –EUR/JPY add 0.30% to 98.19.
The British Pound gains strength against the U.S Dollar today, trading at 1.5391 an increase of 0.06%.
The pair may find support at 1.5340 Monday low and resistance at 1.5436 Friday high.
Meanwhile, the British Pound weakens against the Euro and gain strength against the Japanese Yen, while the EUR/GBP add a 0.13% to 0.8134 and the GBP/JPY add 0.20% to 120.72.
The U.S Dollar weakens against the Canadian Dollar today, trading at 1.0365 a decrease of 0.25%.
The pair may find support at 1.0316 Friday low and resistance at 1.0445 Monday high.
Meanwhile, the U.S Dollar weakens against the Euro and against the British pound, while the EUR /USD add 0.23% to 1.2528 and the GBP/USD add 0.06 to 1.5391.
WTI- Crude Oil:
The WTI gain strength today, trading at 84.64 an increase of 0.80%.
May find support at 81.18 Monday low and resistance at 86.57 Monday high.