Tuesday, June 30, 2015
Monday, June 29, 2015
The European Commission gave its blessing to Greece's imposition of capital controls on Monday, saying Athens appeared justified in temporarily breaching EU laws on free capital movement in order to protect its banks.
"As guardian of the Treaties and with a view to safeguarding the integrity of the single market, the Commission has made an immediate, preliminary assessment of the Greek measures that introduce the controls and finds them to be, prima facie, justified," Financial Services Commissioner Jonathan Hill said.
The EU executive could have raised legal objections to the measures, imposed overnight as Greece faces a default on its debt payments after talks with its creditors broke down.
However, Hill said in a statement: "In the current circumstances, the stability of the financial and banking system in Greece constitutes a matter of overriding public interest and public policy that would appear to justify the imposition of temporary restrictions on capital flows."
"Maintaining financial stability is the main and immediate challenge for the country."
Friday, June 26, 2015
Thursday, June 25, 2015
Monday, June 22, 2015
At the central bank's policy meeting last week, it acknowledged that the exchange rate it manages is overvalued, which means it is likely to undermine economic growth, turn away tourists and hold back long-term prosperity. Yet the SNB refrained from doing anything about it, and the franc immediately appreciated even more, adding to the challenges facing the bank and Switzerland.
Friday, June 19, 2015
Asian shares rose for a third consecutive day on Friday even as China stocks tumbled into correction territory, while the Federal Reserve's cautious stance towards lifting interest rates kept the dollar on the back foot.
Caution over Greece also tempered gains, as euro zone leaders prepared for an emergency summit on Monday to try to avert a Greek debt default.
Financial spreadbetters expected Britain's FTSE 100 .FTSE to open up 0.1 percent. Germany's DAX .GDAXI was seen up 27-38 points, or 0.2-0.3 percent, while France's CAC 40 .FCHI was seen up 2-4 points, or 0.1 percent.
A broad index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.6 percent while Japan's Nikkei .N225 rose 0.9 percent from a one-month low set on Thursday.
But China shares fell heavily, tumbling more than 4 percent at one point. By midday, the key CSI300 index .CSI300 and benchmark SSEC .SSEC were down more than 9 percent for the week and over 10 percent from their early June peak.
This week's correction was triggered by regulators' fresh moves to tighten margin financing - a key engine behind the market's frenzied rally - and was worsened by a tidal wave of initial public offerings that greatly increase share supply.
"First... room for further monetary easing could be less than anticipated, and inflows of new investors could have already peaked," Bosera Asset Management Co said in a note to clients on the correction.
"Secondly, a highly-leveraged bull (market) is not sustainable," Bosera said, citing moves by the government to reduce margin loans, which the asset manager estimates have reached between 3 trillion and 4 trillion yuan.
Shares elsewhere in Asia were buoyed by views that the Federal Reserve may be more cautious about raising rates this year than earlier expected.
A moderate recovery in the U.S. economy in previous months had raised concerns the Federal Reserve would strike a hawkish stance at its meeting on Wednesday, but its cautious tone sparked a sense of relief and prompted investors to snap up risky assets.
"This removes a source of uncertainty for Asian markets in the near term and should be a positive factor going ahead, though the Greek and Chinese factors will temper any optimism," said Stephen Chiu, a strategist at Mitsubishi UFJ Financial Group in Hong Kong.
While analysts broadly concluded the Fed is on track for its first rate increase in more than a decade in September, fixed income derivatives markets such as Fed fund futures <0#FF:> expected the first hike only in December.
"The markets seem to be concluding that the Fed will raise rates only once this year, and not twice as had been priced in (before the Fed's policy meeting ended on Wednesday)," said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.
Growing expectations of a slower trajectory of U.S. interest rate increases sent the dollar swooning against a basket of currencies with the broad dollar index =USD languishing near one-month lows.
That broad undertone of caution from global investors reflected in the latest flows data. While emerging Asian bond and equity markets saw a sharp moderation in outflows from last week, overall capital flows were still in the red, according to EPFR data and ANZ strategists.
In bonds, ten-year U.S. Treasury yields US10YT=RR settled at 2.33 percent while comparable Japanese yields JP10YT=RR held at 0.44 percent.
In commodities, oil prices were a shade weaker, but plentiful output was broadly met by demand.
U.S. crude futures CLc1 edged lower to $60.41 a barrel, while Brent LCOc1 slipped 8 cents to $64.18.
Gold was sidelined at $1,199.15 an ounce XAU=.
Thursday, June 18, 2015
Wednesday, June 17, 2015
Tuesday, June 16, 2015
Monday, June 15, 2015
Friday, June 12, 2015
Thursday, June 11, 2015
European shares saw fresh gains on Thursday after their best day in over a month and as bets that the United States could be edging towards its first interest rate rise kept upward pressure on global bond yields and the dollar.
At the other end of the policy spectrum, the New Zealand dollar NZD= tumbled to a five-year low after its central bank cut interest rates for the first time in four years and South Korean shares got a lift as it cut rates to new a record low.
Underlying both moves was sluggish global demand, and in particular from the region's powerhouse China.
Fixed asset investment there grew at its slowest rate in over 14 years new data showed, although industrial output and retail sales growth did show signs of steadying following a recent dive.
Europe's main bourses <0#.INDEXE> picked after a slow start with the region's benchmark FTSEurofirst 300 .FTEU3 last up 0.5 percent, as hopes returned that Greece was close to sealing a deal with its creditors. Athens' stock market surged more than 6 percent. .ATG
The euro EUR= helped too with it back down to $1.1250 as the dollar .DXY got a lift ahead of what are expected to be healthy U.S. jobless claims and retail sales data later that could nudge the Federal Reserve towards an September rate rise.
It would be its first hike in almost a decade and would finally mark a turn in the direction of the flow of easy money that has repeatedly driven world stocks and bond prices to record highs in recent years.
"The day is going to be dominated in the end by whether signs of spring in the U.S. economy have continued, will Americans come out and flash cash at last," said Kit Juckes head of global currency strategy at Societe Generale.
"And from everything overnight, its the chill from China. There could be further downside in Australia and New Zealand (currencies) and we could be talking about Asian FX weakness as a theme going forward."
Overnight, Tokyo's Nikkei .N225 had added 1.4 percent while Australian shares gained 1.3 percent and South Korea's Kospi advanced 0.3 percent, as they reacted to regional macro news and followed Wednesday's strong gains by Wall Street.
New Zealand's rate cut saw its dollar slide more than 2 percent on the day to a five-year low of $0.7000 NZD=D4. Most economists had not expected a cut and though traders had been saying it was going to be a close call, it got a further hit as the RBNZ said it would ease again if needed.
"The RBNZ has again proved to be more flexible than the market gives it credit for," said Michael Turner, a strategist at RBC Capital Markets.
The yen gave back some of its previous session's gains against the dollar made on comments from Bank of Japan Governor Haruhiko Kuroda who said the yen was already "very weak."
The greenback was last up 0.4 percent at 123.21 yen JPY=, but still some distance from a 13-year high of 125.86 touched Friday on robust U.S. non-farm payrolls data.
The stronger dollar meant commodities were on the back foot again with Brent oil flat at just under $66 a barrel and metals markets from industrial copper to precious gold all deep in the red.
German benchmark 10-year Bund yields DE10YT=TWEB dipped in line with the euro as has become the trend in recent months but held above the psychological 1 percent mark as higher U.S. yields US10YT=RR kept them on a tight leash.
(Editing by Toby Chopra)