Hope Holding Regarding Ezone Crisis Resolution
August 17, 2012
German Chancellor Merkel endorsed ECB Pdt Draghi’s conditional commitment to aiding peripherals and the promise to preserve the euro.
Spanish 10-year sovereign debt yields remain well below the 7% threshold at 6.49%, and Italian 10-year sovereign debt are a tad below 5.8%.
The ten-year German bund and British gilt yields firmed a basis point. The 10-year JGB dipped by two basis points from Thursday’s 2-month high.
The dollar advanced 0.6% against the Australian dollar, 0.3% versus the kiwi, 0.2% relative to sterling and 0.1% against the yen, but the U.S. currency has slipped 0.1% against the yuan, euro and Swiss franc. The loonie is steady ahead of the release of Canadian consumer price data.
Gold prices are steady at $1619.10 per ounce. Oil followed its recent pattern of appreciating in North American trading but settling partly back overseas. West Texas Intermediate is at $95.15 per barrel, 0.5% lower than yesterday’s close.
Asian equity trading was mixed. Stocks are down 0.6% in South Korea, 0.3% in China and Taiwan, and 0.2% in the Philippines, but share prices rose 0.9% in Australian, 0.8% in Japan and Hong Kong, 0.7% in New Zealand, 0.6% in Vietnam, and 0.5% in Indonesia. Bourses closed unchanged in Singapore and Malaysia.
In European trading, the Spanish IBEX jumped 1.7%, and bourses in Paris, Frankfurt and London are each up 0.2%.
Euroland posted a EUR 12.7 billion current account surplus in June, best of 2012 so far. The unadjusted surplus in 1H12 was EUR 45.3 billion versus a deficit of EUR 23.0 billion in the first half of 2011. The seasonally adjusted trade surplus widened to EUR 10.5 billion in June from EUR 6.8 billion in May and EUR 4.8 billion in April. The unadjusted trade surplus was EUR 26.2 billion in 1H12 versus a EUR 23.0 billion deficit in 1H11. Merchandise exports climbed 2.4% in June from May and by 12.3% from a year earlier.
German producer prices were flat last month after drops of 0.3% in May and 0.4% in June. Their 12-month rate of increase slowed to 0.9% from 1.6% in July 4.0% last December and a highpoint of 6.4% in April 2011. In July, energy producer prices went up 0.4%, but non-energy was 0.2% lower.
According to the Conference Board, France’s index of leading economic indicators slid 0.3% in June following drops of 0.2% in both April and May, and the index of coincident economic indicators was unchanged in the latest month.
Italy’s current account posted a rare EUR 1.03 billion surplus in June versus a deficit of EUR 2.67 billion a year earlier.
Icelandic harmonized consumer price inflation slowed from 6.9% in June to 5.4% in July, thanks to a 1.6% on-month decline.
New Zealand producer output prices increased 0.6% in the second quarter and by 1.9% from 2Q11. The on-year pace was down from 2.3% in the first quarter and 4.8% in the year to 2Q11. Producer input prices rose 0.3% on quarter but just 0.5% on year, down from 1.6% in the year to 1Q12 and 4.5% in the year to 2Q11.
After reporting a 0.2% on-year dip of Taiwanese GDP, officials there cut their projected full-2012 growth projection to 1.66% from a prior forecast of 2.08%.
Singapore’s trade surplus widened 72% on month to SGD 3.5 billion in July.
The Central Bank of Chile retained a 5.0% monetary policy interest rate late yesterday as had been forecast.
Scheduled U.S. data releases today are the index of leading economic indicators and the U. Michigan measure of consumer confidence. Canada reports consumer prices.
Copyright 2012, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Angela Merkel, Euroland current account, German producer prices