Daily review 14/06/12
Investors are worried from the request of Italy for rescue, and respond to the downloads rating of Egan Jones and Moody's to the Spanish government.
Asian stock markets trading is conducted today (Thursday) in slightly prices decrease on the background of Spain's rating downgrade by rating agencies Egan Jones and Moody's at night - and in light of growing concern of increasing debt crisis in Europe, which could accelerate the slowdown in the global economy.
First Europe, where despite the rescue package to the banking system in Spain, the rating agencies took a variety of moves to downgrade rating: Fitch cut the rating of 18 banks in Spain, Egan Jones and Moody's lowered the credit rating of Spain (Moody's also lowered the rating of Cyprus).
Moreover, increasing speculation in Europe that after the rescue of Spain and rumors about a possible aid for Cyprus’s small economy, Italy - Europe's third-largest economy - will require also external assistance, to serve its debts.
Despite the concerns Italy raised yesterday about 6.5 billion euros in bonds, when interest rates have risen to a very high level since December - a good reminder that when looking at the numbers in Italy, unemployment, debt and deficit are encouraging than those of Spain.
Although a few days ago Bank of China cut rates for the first time since 2008 to a level of 3.25%, to stimulate the economy and trying to deal with the economic downturn, it seems that this step did not impress the investment bank Deutsche Bank, notifying today (Thursday) that it cuts its growth forecast for China in 2012 to 7.9%.
Previous growth forecast for China’s investment bank granted a position on a higher rate - 8.2%, and bank analysts explain their decision to lower its growth forecast for China's weak economic performance presented by the state in the second quarter, while the U.S. economy is slowing down.
DOW 0.62% ↓ S&P 0.70%↓ NSDQ 0.86% ↓
EUR / USD:
EUR/USD trading at 1.2560 an increase of 0.03% in writing.
The pair may find support at 1.2473 Wednesday low and resistance at- 1.2667 Monday high.
Meanwhile, the Euro gain strength against the British Pound and weakens against the Japanese Yen, when the -EUR/GBP add a 0.18% to 0.8111 and –EUR/JPY drop 0.03% to 99.75.
The British Pound weakens against the U.S Dollar today, trading at 1.5481 a decrease of 0.14%.
The pair may find support at 1.5453 Tuesday low and resistance at 1.5599 Wednesday high.
Meanwhile, the British Pound weakens against the Euro and against the Japanese Yen, while the EUR/GBP add a 0.18% to 0.8111 and the GBP/JPY drop 0.26% to 122.88.
The U.S Dollar weakens against the Canadian Dollar today, trading at 1.0280 a decrease of 0.20%.
The pair may find support at 1.0240 Wednesday 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 0.03% to 1.2560 and the GBP/USD drop 0.14% to 1.5481.
WTI- Crude Oil:
The WTI gain strength today, trading at 82.65 an increase of 0.07%.
May find support at 82.13 Wednesday low and resistance at 83.97 Wednesday high.