Daily review 13/06/12
Asian stock markets trade is conducted today (Wednesday) in price increases, in accordance with prevailing positive sentiment on Wall Street, following speculation and hopeful thinking of investors that the Fed intends to intervene and carry out another stimulus plan (QE3).
It seems that the rescue package that Spain received on weekend did not impress the Fitch rating agency, which last night announced credit downgrade of 18 Spanish banks.
As mentioned, last night trading on Wall Street closed in increase of more than 1%, due to investors' hopes for another intervention of the Federal Reserve in the capital markets and launch another stimulus plan.
In this context, last night the chief of the Fed in Chicago, Charles Evans, declared that he will support a variety of measures that accelerate the creation of jobs in the faltering U.S. labor market.
Although Spain received rescue package on the weekend of about 100 billion euros, it seems that it not particularly impressed by the Fitch ratings agency, yesterday announced credit downgrade of 18 other banks in Spain.
The response came quick and bond yields for 10 years of Spain jumped to a peak level of 6.86%.
In Japan there is big tension for the expected decision of the government of Japan led by the prime minister, as for the consumption tax (VAT) to a level of 10% - double than today.
The prime minister fight to achieve the necessary majority in parliament to pass the new regulation, designed to help reduce the huge deficit in which is the state welfare system.
Yesterday the U.S. government published the deficit for May, which stands on 125 billion Dollar - what's driving the U.S. deficit to 8 months of this fiscal year to -844 billion.
DOW 1.31% ↑ S&P 1.17%↑ NSDQ 1.19%↑
EUR / USD:
EUR/USD trading at 1.2506 an increase of 0.04% in writing.
The pair may find support at 1.2442 Tuesday low and resistance at- 1.2574 Friday high.
Meanwhile, the Euro gain strength against the British Pound and against the Japanese Yen, when the -EUR/GBP add a 0.14% to 0.8041 and –EUR/JPY add 0.22% to 99.63.
The British Pound weakens against the U.S Dollar today, trading at 1.5558 a decrease of 0.07%.
The pair may find support at 1.5482 Monday low and resistance at 1.5599 Thursday high.
Meanwhile, the British Pound weakens against the Euro and gain strength against the Japanese Yen, while the EUR/GBP add a 0.14% to 0.8041 and the GBP/JPY add 0.03% to 123.83.
The U.S Dollar gains strength against the Canadian Dollar today, trading at 1.0268 an increase of 0.07%.
The pair may find support at 1.0249 today low and resistance at 1.0324 Tuesday high.
Meanwhile, the U.S Dollar weakens against the Euro and gain strength against the British pound, while the EUR /USD add 0.04% to 1.2506 and the GBP/USD drop 0.07 to 1.5558.
WTI- Crude Oil:
The WTI weakens today, trading at 83.25 a decrease of 0.07%.
May find support at 81.08 Monday low and resistance at 84.62 Friday high.