Short recap
Asian stocks with cautious on Greece and Italy
China, Hong Kong closed on account of public holiday
Europe opening lower
Greece readying for not paying EUR 7 bln
installment if bail out agreement/haircut not reached
Some banks in Italy and Portugal still facing issues
Macron met with Putin in Paris
Draghi is please by improving economy but
stimulus/extra low rates to stay
Weidmann said that ultra-loose policy still
appropriate
Equities
Akzo Nobel’s rejection of the offer from PPG
Industries (EUR 25 bln) blessed by court
Clouds mounting over Canadian banks (Home Capital
& real estate) as well as Australian banks (Chinese capital controls
not boding well for Aussie real estate)
US equities printing new highs and volatility down
putting global equities to positive light
Bonds
10-yr Trys yield at 2.24%%
10-yr Bund yield at 0.30%
EURUSD
Under pressure from Greece, potential snap elections in
Italy, mess around UK and dovish Draghi
IT to introduce a new election threshold for parties
(5%+)
What in turn will reduce number of parties elected to 4
from current 10+
Greek debt not to be included to QE program from ECB
anytime soon
Nor Greece financing themselves in the markets
1.1140/55 range acting as resistance
If we close below the 1.1000 in sight
If we break than the 1.0840 will likely be the next
1.1000 – growing importance
1.1128 (61.8% Fibo Nov/Jan)
1.0978 (50.0% Fibo Nov/Jan)
Large option EUR 2.7 bln with strike 1.1100 expiring
today
USDJPY
Offers around 111.50
Stops likely below 110.85 level, bids can show up on a
break
Large options (USD 2 bln) with strikes below 111.00
expiring today
200 DMA at 110.15 – a pretty strong support…
Data
GE: Flash CPI m/m expected at -0.1% and y/y
expected at 1.6% vs 2.0% prior
US: PCE m/m expected at +0.1% vs -0.1% previous;
y/y was 1.6% previously
ECB’s Liikanen (1015 GMT)
ECB’s Nowotny (1600 GMT)
Fed’s Brainard (1700 GMT)
Wed
EZ: Flash CPI – should move back to 0.8% level
from 1.2% prior
Former FBI director James Comey to testify
before Senate
Beige Book
ECB’s Coeure, Lautenschlaeger
Fed’s Kaplan, Williams
Thu
ECB’s Villeroy
Fed’s Powell
Fri
US NFPs 185k exp vs 211k prior
Unempl. rate 4.4% exp vs 4.4% prior
Average earnings +0.2% exp vs +0.3% prior
Fed’s Harker
EU-China Business summit (Juncker/Li)
June 8 – ECB meeting
June 8 – UK elections including Scotland, if SNP/Sturgeon
wins the independence referendum likely to follow
June 11/18 – French Legislative (Parliamentary) elections
(a big question mark for Macron to gain majority)
June 13/14 – FOMC meeting
June 15/16 – EcoFin meeting to discuss Greece
Should you have any questions feel free to contact me
anytime.
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where
despite this disclaimer someone would consider this material as an investment
advice. All rights reserved ©2016. Contact: landoftradingATgmailDOTcom
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