9 Jul 2013
Flash: Overnight snap-shot - TD Securities
FXstreet.com (London) - Alvin Pontoh, Strategist at TD Securities gave us an overnight update.
He said Equity markets in Asia-Pac rallied, led by the Nikkei (+2%) and the ASX (+1.5%), following positive overnight leads on the back of an upbeat start to the US earnings season. He said news that Greece had secured the disbursement of a €3bn bailout tranche from the Eurogroup meeting overnight may have added to the positive sentiment, though was hardly a focus during the rest of the Asia session. He also explained there has been some retracement of sorts in yields across bonds and the key swap rates across the region, mirroring US Treasuries overnight. “The ACGB curve bull steepened following a poor NAB business survey, with the 3s10s widening past 111bp—steepest since June 2009—as markets price in a better-than-even chance of an August rate cut. AUDUSD dipped to sub-91c temporarily but has since found good support above $US0.9120, while NZDUSD is holding just above $US0.78.” He added that China’s CPI surprised to the upside but should have little, if any, implication for monetary policy.
He said Equity markets in Asia-Pac rallied, led by the Nikkei (+2%) and the ASX (+1.5%), following positive overnight leads on the back of an upbeat start to the US earnings season. He said news that Greece had secured the disbursement of a €3bn bailout tranche from the Eurogroup meeting overnight may have added to the positive sentiment, though was hardly a focus during the rest of the Asia session. He also explained there has been some retracement of sorts in yields across bonds and the key swap rates across the region, mirroring US Treasuries overnight. “The ACGB curve bull steepened following a poor NAB business survey, with the 3s10s widening past 111bp—steepest since June 2009—as markets price in a better-than-even chance of an August rate cut. AUDUSD dipped to sub-91c temporarily but has since found good support above $US0.9120, while NZDUSD is holding just above $US0.78.” He added that China’s CPI surprised to the upside but should have little, if any, implication for monetary policy.