Forex Bull

*** ECONOMIC DATA ***

- (SP) Spain May Industrial Output NSA Y/Y: -22.3 v -28.4% prior; WDA Y/Y: -20.5 v -16.4%e

- (HU) Hungary April Final Trade Balance: € v €429.7M prior

- (SP) Spain June Services PMI: 41.2 v 39.1 prior

- (SZ) Swiss June CPI M/M: 0.2% v 0.1%e; Y/Y: -1.0% v -1.1%e

- (IT) Italy June PMI Services: 42.3 v 42.9e

- (FR) France June Final PMI Services: 47.2 v 47.5e

- (GE) Germany June Final PMI Services: 45.2 v 44.3e

- (EU) Europe June Final PMI Services: 44.7 v 44.5e; PMI Composite: 44.6 v 44.4e

- (UK) UK June PMI Services: 51.5e v 51.7 prior

- (UK) UK June Official Reserves (Changes): No expectations v $2.1B

- (UK) BoE Q1 Housing Equity Withdrawal: -£9.0Be v -£8.0B prior

- (EU) Euro-Zone May Retail Sales M/M: -0.4% v -0.1%e; Y/Y: -3.3 v -2.7%e

- (MA) Malaysia May Trade Balance (MYR): 10.0B v 8.9Be

*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***

- In equities news overnight: BNP Paribas [BNP.FR] To form a fund management partnership with Greece’s Piraeus.The companies plan to set up joint ventures in both Greece and Switzerland and expect to complete the transaction some time in Q4 || Deutsche Telekom [DTE.GE] FT article that the company’s executives would prefer an asset-swap deal with any possible bidder for its T-Mobile UK unit. The executives favor swapping T-Mobile for an asset in another country as opposed to an outright sale of the unit. || Autonomy [AU.UK] Awarded $15M contract with major global bank || Vallourec [VK.FR] stated that 65% of its dividend would be paid in stock.- The option of receiving the dividend by delivery of shares generated strong interest amongst shareholders. The subscription rate for this option was close to 65% || F&C Asset Management [FCAM.UK] Friend’d Provident [FP.UK] Received court approval for F&C Asset Management demerger. The Demerger has been structured as a return of capital to Shareholders by Friends Provident Group. || Bank of Ireland [BKIR.IR] Provided an interim statement in which economic environment remained difficult and trading conditions were challenging. Keeping bank stability remained the primary management objective. || Balfour Betty [BBY.UK] Provided trading statement in which the YTD trading performance continued to be in line with expectations. Continue to have a high-quality order book, which, at the half year, is expected to be broadly in line with the £12.8B reported en the end of last December.Net cash in excess of £200M for the first six months of 2009. || Strabag [STB.GE] withdrew from purchase agreement with Mexico;s Cemex [CX] in Austria, Hungary. Strabag stated that it quit the deal because it was unable to reach anti-trust approval in Austria by June 30 deadline || Man AG [MAN.GE] Awarded 60 bus order || Tui [TUI1.GE] Hapag-Lloyd unit might seek additional government aid according to Frankfurter Allgemeine Zeitung (FAZ). The article cited 15% holder Klaus Michael Kuehn. || BMW [BMW.GE] CFO commented that it would hold intensive talks with Daimler regarding cooperation of the upper car segment. He also stated that he was very certain that the company will not seek gov aid from SOFFIN for its financial services business ||

- Speakers: Japan official reiterated view that USD would remain key global currency and that other countries should support this view. G20 might debate USD reserve status on the sidelines of the G8 summit next week ||| ECB’s Noyer commented that directing the economy in the current uncertain environment would be a challenge. Financial development in surplus countries will help reduce probability of future bubbles but the banking crises might lead to long slumps if not cured fast. He reiterated the primary, dominant target of monetary policy should remain price stability

|||Polish Central Banker Noga commented that he saw no further room for interest rate cuts this year due to inflation forecasts. He expected June inflation to stay at 3.6% y/y reported in May but believes it will pick up to 4% in Dec. Previouse Noga wanted inflation at 3.5% for any additional rate cut. He stressed need to peg Zloty to Euro ‘as soon as possible’ and saw ‘optimal’ entry to Euro currency peg in 2011, euro adoption ‘optimal’ in 2014. He expected Zloty to trade below ‘equilibrium rate’; equilibrium rate ’slightly’ above 4 zloty/eur || In contrast Poland Fin Ministry stated that it expected the Central Bank to continue with its easing policy and cut rates to 3.0% by the end of 2009. It also saw Polish unemployment rising to 12.5% at year end from the 10.8% reported for May

||| SNB’s Hildebrand commented that the global economy was no longer in ‘free fall’ but the Swiss economic recovery could be slower than in other regions. Swiss economic recovery might lag behind a rebound in the rest of the world because the country was hit relatively late |||Indonesia Central Bank guided its Q2 GDP growth in a range of 3.7%-4% y/y and year end inflation at between the 5-7% area. ||| South Korea’s Fin Min Yoon commented that it was not the time to implement ‘exit strategy’ ||| Philippine Central Bank also commented that it did not see need to ‘exit’ easier monetary policy at this time || Bank of Spain (BOS) commented that the Spanish and Euro-zone economies contracted in Q2 but at a slower pace. It noted that the ECB considers interest rates are appropriate at this time. The BOS added that both medium and long term inflation expectations were anchored.

- In Currencies: The USD encountered some retracement against the European pairs during the session following the gains on Thursday in the mist of the increase in risk aversion after the US payroll report. The EUR/USD recovered from the Asian lows of 1.3950 to hover around the 1.40 level throughout the session.. Japanese official reiterated the opinion that the G8 was unlikely to debate the USD reserve stat

- the CHF was weaker on continued concerns that the SNB might intervene in the markets again following its inflation data. USD/CHF approaching the 1.09 level while EUR/CHF recovered from session lows of 1.5180 to move towards 1.5250 as the NY morning approached.

- In Energy: IEA’s Tanaka commented that China’s state and commercial stocks of crude oil were equivalent to 86 days of net imports. The Figure was only 4 days short of the amount needed to join the International Energy Agency. The IEA would welcome China as an equal partner in the organization but was unsure if China would ever join || OPEC President Vasconcelos commented that it was ‘Necessary’ to build market stability; ’satisfied’ with current prices of oil and added that prices between $68-71/bbl were ‘appropriate’. || Poland might agree to purchase Russian gas through 2035 accorded to Polish press reports. ||

- Credit Crisis: S&P analyst commented that Hungary’s risk remained ’skewed to the downside’ but saw a number of encouraging developments

- Wider budget deficit would undermine investor confidence. Country outlook remained negative, citing that the debt burden was set to rise to 84% of GDP and the next general elections might derail economic policy || S&P affirmed Philippines’ sovereign rating with the outlook Stable. It did express come concern of the country’s revenue. The long-term foreign currency debt remains at “BB-” while the long term local currency debt stands at “BB+” || According to the head of China’s National Energy Administration, the Chinese gov’t is drafting a renewable energy stimulus plan

- Reminder: Back on June 25th, it was reported that China may launch a stimulus plan for the domestic alternative energy industry as soon as July – Shanghai Securities News

*** NOTES ***

- US celebrates its July 4Th Independence Day holiday

- Seven more U.S. Banks Seized by FDIC on Thursday

- Euro-Zone retail sales were worse than expectations

- Europe PMI services data shows stalling in confidence

***Looking Ahead*** US holiday with bond and equity markets closed

- 10:00 (TU) Turkey Jun Consumer Prices M/M: 0.1%e versus 0.6% prior; Y/Y: 5.7% e versus 5.2% prior

- 10:00 (TU) Turkey Jun Producer Prices M/M: 0.1%e versus -0.1% prior; Y/Y: -2.6% e versus -2.5% prior

www.tradethenews.com

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European market Update: Euro-Zone PMI services suggest a stall in confidence complemented with its Retail Sales data worse than expected

GFT wishes you a happy 4th of July

Today, U.S. markets are closed in honor of tomorrow’s 4th of July holiday. GFT would like to wish you a Happy 4th of July. Enjoy the long weekend.

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Happy 4th of July!

Posted By: Reuters

Investors have entered the third quarter deeply divided about what should be happening on financial markets.

While some reckon the global economy is well on the mend and therefore it is time to put more money into stocks and riskier assets, others see fragility and danger, and remain cautious.

With a relatively light data agenda and the next corporate earnings season yet to get fully under way, the coming week is unlikely to see an end to the dispute.

What investors need for a firm commitment to riskier assets — one that can sustain the relief rally of the last quarter — is concrete evidence that banks have begun normal lending, consumers are spending and that the economy is growing.

June’s U.S. payroll data, which was far worse than expected, provided the opposite message on the economy and brought out the bears.

“(It) suggests that the alleged “green shoots’ are mostly yellow weeds that may eventually turn into brown manure,” economist Nouriel Roubini wrote on his RGE Monitor blog.

But others expect the generally improving economic picture to continue emerging next week, including in Monday’s U.S. ISM non-manufacturing data and Friday’s Michigan consumer sentiment report.

This disparity of views has led to something of a hiatus on stock markets. While world stocks gained more than 21 percent in a record second quarter, they traded more or less flat in June.

“After having reacted quasi-euphorically to the first hopes that the recession may end soon, the market is now wondering about the timing, nature and strength of the expected economic recovery,” BNP Paribas Investment Partners said in a note.

Earnings Ahead

A key to this may come from the new earnings season. This does not start properly until the week after next, but there could be a taster on Wednesday when aluminum giant Alcoa [AA 9.86 -0.49 (-4.73%) ] reports.

Thomson Reuters Proprietary Research calculates that analysts expect S&P 500 earnings to have dropped an average 35.5 percent in the second quarter.

There have been 56 negative earnings-per-share pre-announcements heading into the reporting season and 37 positive ones, it says.

Analysts’ views on how stock markets will end the year ranged widely in Reuters polls released this week.

The consensus was for the S&P to gain another 8 percent, European shares 3 percent and Japan to end flat. Some people are more upbeat.

Barclays Wealth advised its clients this week to increase portfolio risk levels to normal, due to growing evidence that the decline in economic activity is ending.

In the next few weeks investors are likely to move away from wholesale buying of cheap stocks to more selective picking.

“Almost anywhere you go, you can find interesting stocks with value,” Schroders Chief Investment Officer Alan Brown told Reuters television.

G8 and the Dollar

Investor attention next week is also likely to focus on the Group of Eight summit in L’Aquila, Italy.

The slow-burning issue of international reserve currencies could cause some volatility if it is raised as China, which will attend with other large emerging market countries, says would be normal.

The issue is whether there is any serious momentum behind a potential move away from the U.S. dollar as the global reserve currency and into Special Drawing Rights, a basket of currencies which is the International Monetary Fund’s accounting unit.

But the discussions, if they take place at all, are unlikely to take any concrete form and so any related currency moves would probably be short-term.

“I don’t think that the dollar is at risk in the current context,” said Audrey Childe-Freeman, senior currency strategist at Brown Brothers Harriman.

Topics: Economy (Global) | U.S. Dollar | Currencies | Investment Strategy | Market Outlook | Stock Market | North America | Asia | Europe | Corporate News
Companies: ALCOA Inc

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Divisions Dominate as Third Quarter Begins

My picks: Staying Short AUD/JPY

Expertise: Fundamentals Combined With Technicals

Average Time Frame of Trades: 1 Day – 1 Week

As noted yesterday, I’m staying short AUD/JPY as solid resistance sits at 78.25/38 and risk aversion could remain a theme in the markets. I’m looking to the 6/23 low of 74.03 and the 50% fib of 66.84-80.46 at 73.68 as potential targets.

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Staying Short AUD/JPY (Daily FX)

My picks: Short NZDUSD

Expertise: Global Macro, Classic Technical Analysis

Average Time Frame of Trades: 1 week – 6 months

Last week, I wrote that the New Zealand Dollar was testing support at the bottom of a rising channel that has guided the pair higher since risky assets (including high-yielding currencies) began to rebound in early March. NZDUSD has now broken below the lower boundary of this channel while showing a Three Black Crows bearish reversal signal, a formidable sign of continued downside ahead. Enter short from here, initially targeting April’s swing lows at 0.5522. A stop-loss will be activated on a daily close above 0.6601, the 06/02 wick high.

For complete analysis of the major currencies, please see my latest weekly technial outlook report.

Originally posted here:
NZDUSD: Candlesticks Point to Bearish Reversal as Prices Break Channel Support (Daily FX)

UK and euro zone services PMI were slightly lower than expected for June. “What it suggests to me is that the quarter just gone for the UK economy suggests another quarter of contraction,” Bob McKee from Independent Strategy said Friday.

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UK to Contract in Second Quarter: Economist

Posted By: Reuters

Signs of a recovery in the euro zone’s dominant services economy took a backwards step in June but business optimism hit a near two-year high on hopes that the worst is over, surveys showed on Friday.

Markit revised up its Eurozone Services Purchasing Managers Index in June to 44.7 from the flash estimate of 44.5, but this was down from May’s 7-month high of 44.8.

Economists had expected 44.5 and this marks the 13th consecutive month the index has been below the 50 mark that divides growth from contraction.

“They are grinding slowly higher but we are still short of the 50 mark which suggests that as we approach the half-way stage of 2009 that the economy isn’t growing yet and it is going to take a few months before we get back above the gain line,” said Peter Dixon at Commerzbank.

The euro was unmoved by the data.

There was evidence of divergence in the big four economies in the region.

Earlier data showed activity in Germany’s services sector fell at the same pace as in May, while in France and Spain the sector shrank at a slower pace. The rate of contraction accelerated in Italy.

However, firms ranging from banks to restaurants were optimistic and the business expectations index rose to 62.3 from May’s 59.1, a level not seen since July 2007.

Data from Britain showed its dominant services sector expanded for a second month in June but the pace of recovery slowed as new business contracted.

The euro zone economy shrank a record 2.5 percent quarter-on-quarter in the first three months of this year.

But it is expected to contract much less severely in the second quarter, with a return to growth pencilled in for the last three months of this year.

The European Central Bank left interest rates at 1.0 percent on Thursday, and the market sees them staying there until October next year at least as the ECB battles to boost the flagging economy.

Composite Continues Climbing

The euro zone composite index, which includes manufacturing data released on Wednesday, rose to a 9-month high of 44.6 last month, revised up from the flash estimate of 44.4 and above May’s 44.0. Economists had forecast 44.4.

“The final composite PMI for June showed that the rate of contraction has eased substantially since February’s peak, but the rise in the Output Index was disappointing compared to improvements seen in previous months, and the Index has still yet to regain its pre-Lehman level,” Chris Williamson at Markit said.

The composite employment index rose to a 5-month high of 42.2, up from May’s 40.7, but showed that firms are still slashing jobs in an effort to cut costs and stay afloat.

Meanwhile, the composite output price index remained solidly sub-50, suggesting firms are having to slash prices to woo customers.

Official euro zone inflation fell 0.1 percent in June, the first time prices have dipped into the negative territory in the bloc, and economists expect it to fall further over the summer months before climbing in the later stages of the year.

Recovery in UK Services Sector Slows in June

Britain’s dominant services sector expanded for a second month in June but the pace of recovery slowed as new business contracted and firms stepped up the pace of job cuts, a monthly survey showed on Friday.

The headline PMI index eased to 51.6 from 51.7, confounding expectations for an improvement to 52.0.

Last month’s leap above the 50-mark that denotes growth raised hopes that Britain may be one of the first major economies to emerge from recession.

While a pause in momentum may not be a huge setback given the pace of improvement in recent months, it will play into policymakers’ fears that a sustained recovery is far from assured.

For the Investor:

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“The sideways movement in the headline business activity index in part reflects some consolidation,” said Paul Smith, senior economist at Markit. “Nonetheless, the underlying data indicate that the business climate remains fragile with tight lending conditions and rising unemployment remaining key threats to continued service sector recovery.”

The Bank of England meets to discuss monetary policy next week but markets do not expect any rise in interest rates until the end of the year at the earliest. Neither does the Bank appear in any rush to reverse its policy of pumping money into the economy to boost demand.

Indeed, the current debate is whether the Bank will raise its target for quantitative easing with many economists expecting an increase to 150 billion pounds to be announced as early as next week.

Fragile Recovery

Britain’s economy shrank at its fastest pace in more than 50 years in the first three months of this year but better data in recent months has generated hope of a return to growth in either the second or third quarters of this year.

Nevertheless, economists have also cautioned that much of the recent pick-up in activity could be due to re-stocking after firms ran down inventories last year.

Heightening such concerns, the new business index fell to 49.7 in June from 51.8 in May — the first decline in the index since November.

“Anecdotal evidence from the survey panel indicated that economic conditions remained difficult overall, with clients reluctant to commit to expenditure given ongoing uncertainty,” the survey noted.

In a bid to support sales, average output prices were cut for an eighth consecutive month in June. In contrast, average input prices picked up slightly on the back of higher fuel costs.

Despite the fall in new business and further job losses, business confidence continued to rise in June with the expectations index hitting its highest level in almost two years.

Topics: Interest Rates | Inflation | Consumers | Recession | Currencies | euro | Central Banks | European Central Bank | Europe | Italy | The Netherlands | Germany | France | Britain | Economy (Global)
Sectors: Industrial Goods and Services

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Euro Zone, UK Service Sectors Stumble but Optimisic

The Euro reached back above 1.4000 as a revised higher final PMI service reading to 44.7 from 44.5 helped provide support. A surprise improvement in Germany to 45.2 from 44.3 helped offset lower revisions in France and Italy.

Talking Points

•    Japanese Yen: Failed To Hold 96.00

•    Pound: PMI Services Falls

•    Euro: Retail Sales Falls More Than Expected

•    US Dollar: 4th of July Holiday

Euro Regains Footing But Drop In Retail Sales Could Be Weighing Factor

The Euro reached back above 1.4000 as a revised higher final PMI service reading to 44.7 from 44.5 helped provide support. A surprise improvement in Germany to 45.2 from 44.3 helped offset lower revisions in France and Italy. Euro bulls then chose to ignore a bigger than expected drop in May Euro-Zone retail sales of 0.4% versus expectations of -0.1%, which dragged the annualized reading to -3.3% from -2.3%. The drop in consumption was lead by non-food sales which fell 0.7% as unemployment reaching 9.4% continues to lead consumers to retrench.

The ECB acknowledged that growth will be difficult to come by for the rest of the year following its decision to lead its benchmark rate at 1.00%. However, President Trichet did forecast that positive results could come as soon as mid 2010. The central bank is expected to keep rates unchanged over the near-term as they asses the impact of their cover bond purchase program. However, President Trichet didn’t rule out future cuts which could limit the upside potential for the single currency. The 20-Day SMA continues to provide support at 1.3984 and until we see a break below a re-test of 1.4340-6/3 high remains a possibility.

The pound continued to see see-saw price action as GBP/USD would reach as high as 1.4632 before a sharp reversal back below 1.6350. Better than expected PMI service and BoE equity withdrawal prints have helped sterling regains its footing. The measure of the service sector fell from 51.7 to 51.6 but beat expectations of 51.5. Meanwhile, the amount of money Britons pulled from their homes fell by a record £8.1 billion in the first quarter but beat expectations of £9.0. The gauge is a strong indicator of demand for big ticket items like cars and vacations. The GBP/USD is threatening to close below the 20-Day SMA for the first time since 4/29 which would be a significant bearish sign. However, I would wait until I see a break below 1.6187-6/18 low before I have conviction of a significant break lower.

The dollar has given back some of its gains following yesterday’s dismal Non-farm payroll release which sparked a flight to safety. European equity markets are only trading slightly lower which could be a sign that optimism still remains. The labor picture is expected to lag and traders will turn their focus to leading indicators for signs of continued improvement. Monday’s ISM Non-manufacturing release will highlight next week’s calendar and if the sector gets closer to expansion then we could see risk appetite restored and the dollar trade lower.

Will The EUR/USD Fall Below 1.4000? Join us in the Forum

Related Articles:

US Dollar Range to Yield to Bullish Momentum Against Major Currencies

To discuss this report contact John Rivera Currency Analyst: jrivera@fxcm.com

Original post:
Euro Regains Footing But Drop In Retail Sales Could Be Weighing Factor (Daily FX)

The Czech koruna gave up all of its Wednesday’s gains yesterday as market sentiment turned negative after a release of the US payrolls report. As a result the EUR/CZK rebounded back towards the 26 level. Today, the only item on the domestic agenda is the CNB Minutes from the latest Bank Board meeting where the Board left its rates unchanged. In our view the Minutes sounded broadly neutral. What could be surprising is the fact that the Board really discussed the effects of a weak(er) koruna on core inflation. All in all, this kind of information won’t be a big item for today’s trading. We expect very a quite market as there is a holiday in the US today and the Czech Republic is heading for the long weekend.

The Czech yields fell across the board yesterday. Given the lack of domestic market movers t positive price action was exclusively a result of bullish developments in core bond markets. Today, the eye-catcher is obviously the CNB Minutes from the latest Bank Board meeting. The text shows that the Board saw (in our view very weak) inflationary factors – the unexpectedly high growth in household consumption and the slight upswing in adjusted inflation excluding fuels (in fact core inflation), which according to the Board might have been a result of the weaker exchange rate at the start of this year. We think that both threats will quickly fade away from Board members’ minds in the upcoming month and that the CNB will be forced to cut rates one more (though probably the last) time.

Hungary Yesterday, the Hungarian markets were affected by conflicting factors. Early in the session, the forint extended the gains from the previous sessions. On top of that, the positive sentiment towards the country was confirmed by a very successful auction of Hungarian government bonds. This combination of a rising currency and rising bond prices indicated that markets came to the conclusion the Hungary might have entered some kind of positive, self-reinforcing spiral that might open the way for rate cuts in the near future. The Government debt agency also indicated that it may raise the amounts offered at the next bond auctions, if demand remains strong. However, the tide turned after the publication of the weaker than expected labour market report in the US. A spike in global risk aversion also hit the Hungarian currency and EUR/HUF even returned above the 270 mark. Recently, the forint had a strong run on the positive domestic developments. However, if the global market context were to turn again more negative, this will cap the ascent of the forint and might even cause some further (moderate) profit taking. The technical picture remains forint constructive as long as the EUR/HUF pair holds below the 275 resistance area.

Poland The Polish zloty gave up part of the gains on Thursday as the sentiment on the global markets deteriorated after worse than expected US payrolls. Beside that also the stronger US dollar could have contributed to a nearly 1% loss of the Polish currency. The comments by the Finance Minister indicating that the budget deficit should not top recently revised 27 billions zloty were widely ignored as well as his remarks on green shoots in the economy. Today the calendar is once again empty. Beside that also the US Holidays should contribute to the calm trading ahead of weekend. The zloty should stay in wait and see mode ahead of the start of the US earning season, which may be decisive for the sentiment on the global emerging markets.

KBC

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KBC: CE currencies give up part of their recent gains

- In currencies, the US dollar and yen opened the session stronger, however both currencies have since pared their gains as dealers attributed the earlier moves to “stop hunting” and illiquid market conditions. EUR/USD moved below 1.400 in Asia, but has since pared its losses. Additionally, the Swiss Franc and pound have moved off of their worst levels against the dollar. In terms of the commodities currencies, the NZD, AUD and CAD have all rebounded from their opening losses against the USD and JPY. The Australian dollar may have been supported by the June AIG Performance of Services index which expanded for the first time since March 2008, due to a rebound in sales and new orders. In other currencies, GBP/JPY and EUR/JPY have bounced off of their lows, which were seen around 156.50 and 133.59, respectively. The launch of a ¥110B samurai bond by France’s EDF is seen as supportive for EUR/JPY. In Asian currencies, the Korean Won is marginally weaker against the dollar as yesterday’s missile tests by North Korea have had only a muted impact.

- In terms of foreign exchange commentary, as speculation regarding the US dollar’s reserve currency status continues going into the upcoming G8 summit, the former Chinese Vice Premier Zeng said he sees no dramatic change soon in the international currency system, while simultaneously urging more supervision of the reserve-currency nations. In other commentary, the Peoples Bank of China Governor Zhou noted that lower US demand posed risks to China, which include overcapacity, weaker GDP and unemployment.

- In equities, most Asian indices are in negative territory as the US nonfarms payrolls report has weighed on sentiment. The Nikkei 225 is lower by more than 1% on declines in shares of consumer services firms and oil/gas companies. Australia’s S&P ASX 200 is declining by more than 1.25%, led by losses in shares of basic materials companies and financials. South Korea’s Kospi is marginally lower on declines in shares of utilities and oil/gas companies. In other Asian equities, Taiwan’s Taiex is down by more than 0.10%, China’s Shanghai Composite is higher by more than 0.20% at the morning break and the Hang Seng is little changed. (Note: All equities quotes are as of 11:52 PM EST)

- Crude oil is lower by more than 0.30% and trading around $66.50/bbl. Crude is being weighed down by the declines in equities and the weakness in the EUR/USD currency pair. During the US session, oil prices declined by more than 3.5% following the release of the US employment figures. Spot Gold is higher by more than 0.20% and trading above $930/oz, after declining by more than $10 during the US session.

www.tradethenews.com

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Asian Market Update: Most Asian equities indices track the US session declines as nonfarm payrolls data disappoints