Market update 12-07

Asia:

Chinese Minister of Finance says it expects 7% GDP in 2013 and that the economy will suffer a hard landing. Macquarie cuts its 2013 GDP forecast from 7.8% to 7.3%, and 2014 of 7.3% to 6.9%.

Japanese bonds traded slightly upward at the Asian opening to go to negative territory the rest of the session. Investors have reacted sales to the Bank of Japan's decision not to buy bonds to 5 and 10 years in the session. Its impact has the performance of 10-year bonds above 0.830% May-end levels, and close down 8 ticks at 143.04. The Nikkei adds 0.25% to close slightly encouraged by the positive close on Wall Street.

Europe and the UK:

Constancio, ECB says it requires the central bank's accommodative policy and advanced guidance offered by members of the institution, has helped stabilize the markets.

Praet, the ECB proposes to introduce the publication of the minutes of the meetings of its members to help clarify any misunderstanding about the decisions of the central bank.

Portugal indicates that the Troika has delayed its quarterly assessment until August, due to the current political situation.

S & P affirms Germany's triple-A with a stable outlook. Check up the prospect of Ireland from stable to positive, and maintains its rating to BBB +.

USA:

The T-Notes are listed on the intervention range from Bernanke on Wednesday night. However, the auction of 30-year bonds yesterday was well received and allowed a slight reduction in the income paid. However, the demand for this bond line was the lowest in 2 years. The T-10-year Notes log off 126.10, up 33 ticks. 126.13 listed prior to the European open.

Forex

Dollar / Yen remains certain gains in Asian session despite activate stops above 99.10 98.88 takes it. Low volume in today's session. Dollar / Australian crops part of yesterday's losses attributed to macro sales from Asia. Listed on pending 0.9174 GDP data from China next week.

  

Commodities

WTI crude fell 0.15 USD at 104.76 after hitting the 107 USD in the increases of the last two sessions. The EIA has eliminated the possibility of a third consecutive week of gains, indicating that the global supply exceeded demand in 2014.

Macro Data:

- IPC Spain (Jun) (09:00 am)

- IPC Italy (Jun) (10:00 hours)

- Leading Indicators United Kingdom (Jun) (11:00 hours)

- Eurozone Industrial Production (Sep) (11:00 hours)

- U.S. Producer Price Index (Jun) (14:30 hours)

- Consumer Sentiment from the University of Michigan (Jul) (15:55 hours)

Conferences:

- Costa, the ECB, speaking in Lisbon (10:00 hours)

- Parliament of Portugal discusses the State of the Union (10:30 am)

- Williams, of the Fed (FOMC non) monetary policy speech in Vancouver (23:15 pm)

- Plosser and Bullard, Fed, speaking in Jackson Hole, Wyoming (no set time)

Auctions:

- The ECB announced the LTRO program returns (12:00 hours)

- United Kingdom Pounds sold 2,000 million in letters at 1, 3 and 6 months (12:10 hours)

- The Fed buying USD 1,000-1,500 million in bonds maturing range Feb36-May43 (17:00 hours)