European markets outlook: Stocks seen little changed as fin market regulation curbs risk appetite
First Published Saturday, 11 July 2009 from Need to Know News
European indices are expected to open little changed as concerns about the future effects of proposed financial market regulation in the US and the EU are sapping risk appetite. The DAX future and the CAC future were both up 0.1%.
Asian shares declined, led by exporters, as a slow recovery in the US would hurt their business prospects. The Nikkei lost 1.5% with Honda off 3.7% and Canon down 2.5%. The Hang Seng fell 2%. The ASX dropped 0.7% with Rio Tinto, the world third-largest miner, declining as much as 8% as the company started to sell new shares in the amount of $15.2bln.
The European calendar starts at 7:30am GMT with the interest rate decision of the SNB, which is expected to keep rates unchanged at 0.25%. The UK has May retail sales and public sector finance data at 8:30, followed by the CBI industrial trend survey at 10am. All UK numbers will be broadcast live at Need to Know News' Scream Audio.
The greenback was off 2wk lows against the yen as recent US data suggest that the Fed is unlikely to raise rates soon. USD/JPY added 10 pips to 95.76 after touching 95.52 yesterday. GBP/JPY was up 45 pips at 157.22 and EUR/JPY was up 38 to 133.78. Cable gained 25 pips to 1.6413. EUR/GBP was flat at around 0.85 and EUR/USD advanced 26 to 1.3967.
European bonds were narrowly mixed. The Bund future was down 18 ticks to 119.68. In the cash market, the 2yr Schatz yield was up 1bp to 1.54% and the 10yr Bund added 3 to 3.51%. The 2yr Gilt lost 1bp to 1.33%, while the 10yr Gilt gained 1 to 3.77%. Elsewhere, the 10yr T-note was up 1bp to 3.70%, with yields hovering around 2wk lows ahead of the Fed's policy meeting next week. The 10yr JGB was down 1bp at 1.46%.
Oil was little changed as fears about declining demand offset supply concerns arising from a potential attack on a Nigerian pipeline. WTI was up 8 cents at $71.11. Brent dropped 5 to $70.80.
- Regulatory approval for Eurex in Québec
Michael Peters, member of the Eurex Executive Board: "This is an exciting opportunity to admit customers as new members in Quebec." Eurex, the international derivatives exchange, has announced that it has received regulatory exemption from the Autorité des marchés financiers (AMF) in Québec to offer its full suite of products in the province of Québec, Canada.
Eurex is the first-ever foreign derivatives exchange to receive such an exemption by AMF.
“For the first time, Eurex’s entire product range will be available in a key North American market....continued - SGX to offer Nifty options
The Singapore Exchange (SGX) has announced that it expects to offer options on the S&P CNX Nifty Index (Nifty) and related products in the coming year.
This follows SGX’s obtaining of licensing rights from India Index Services & Products Limited (IISL) for the product range including derivative contracts on the CNX Nifty Junior, CNX 100 and CNX Midcap indices....continued - Bursa Malaysia selects Patsystems to provide OMS for derivatives trading
Barry White, Regional Director Asia Pacific, Patsystems: "We are extremely excited to have been selected as the front-end provider for Bursa Malaysia Derivatives' electronic trading platform." Patsystems, the trading solutions provider to the derivatives industry, has announced that it has been selected as technology provider for Bursa Malaysia Derivatives Berhad's new front-end for derivatives trading, known as Order Management System (OMS).
Bursa Malaysia Derivatives will offer white labeled versions of Patsystems J-Trader and Pro-Mark front-ends as options to the trading community who wish to access Bursa Malaysia Derivatives products....continued - UBS admits 69 ETCS to London Stock Exchange
The London Stock Exchange has announced that UBS has become a new issuer of Exchange Traded Commodities (ETCs) on its markets....continued
- Automated Trader Updates
Following the launch last week of Bloomberg Tradebook’s new MTRX algorithm, Bloomberg has this week introduced its correlation-weighted currency indices, a tool for measuring the strength of currencies....continued
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