S&P industry groups are trading mixed. Financial sector have been hit the hardest (-3.3%) amid falling shares of benks: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) and Barclays PLC (BCS) -4%, Barclays PLC (STD) and Barclays PLC (AGO) -3%.
The oil fell while the gold rose to a record high amid a lack of progress in the U.S. debt ceiling talks, that boosts concern the world’s largest economy may default. This hurts demand in commodities and rises demand for "save haven".
Currently September WTI Crude oil is at $99.21 per barrel (-0.71%).
Currently S&P industry groups are mixed within the range of 0.6%. But Financial sector is significant lower (-3.1%) amid a falling shares of banks: Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) и Barclays PLC (BCS) -4%, Barclays PLC (STD) и Barclays PLC (AGO) -3%.
The US dollar falls against a basket of rival currencies as U.S. lawmakers failed to agree on raising the nation’s $14.3 trillion debt ceiling and Greece’s credit rating was cut.
The euro bounces back after its drop amid investors are in a gloomy mood after Moody's Investors Service cuts Greece's credit rating three notches to Ca, their second lowest rating, from Caa1 and assigned a developing outlook to the ratings.
Canada’s dollar is at the highest level since November 2007 as investors sought shelter after U.S. lawmakers failed to find consensus on raising the nation’s $14.3 trillion debt ceiling. The loonie capped a second-straight weekly gain on July 22 on speculation the nation’s central bank will raise interest rates at least once this year.
Switzerland’s franc strengthened to a record against the dollar on demand for the safest assets amid U.S. debt ceiling talks and downgrade of Greece
The yen retreats from today’s advance against 15 of 16 major peers, including US dolar.
Initial support is near $1.4320/25 (38.2% Fibo level of $1.4140-$1.4440 move, Jul 22 low). The next one is at $1.4290 (50.0% Fibo). Minor resistance is at $1.4440. The rise may move to $1.4480.
The pair remains at $1.6290 after the London close after trading essentially sideways below $1.6300 for the last couple of hours. Earlier offers reported around $1.6300 and likely are residual interest still in place.Фунт завершает европейскую сессию в области $1.6390 против доллара. Последние несколько часов наблюдается боковое движение пары на выше $1.6300. Ранее скопление ордеров на продажу было отмечено на $1.6300 и, вероятнее всего, интерес к этому уровню не изменился.
The markets continue to suffer losses on concern about the apparent impasse in a politically negotiated settlement talks to raise the U.S debt ceiling and after Greece's debt was downgraded again.
U.S. stocks were headed for early declines Monday, after Congress failed to find common ground on a deal to raise the debt ceiling over the weekend.
On weekends the negotiations faltered and both parties indicated they would pursue separate legislative tracks.
If Congress fails to raise the $14.3 trillion debt limit, Americans could face rising interest rates and a declining dollar, among other problems.
World markets: European stocks edged lower in morning trading. Britain's FTSE 100 slipped 0.2%, the DAX in Germany was little changed and France's CAC 40 fell 0.4%.
Asian markets ended the session lower. The Shanghai Composite dropped 3%, the Hang Seng in Hong Kong lost 0.7% and Japan's Nikkei fell 0.8%.
Companies: Shares of BlackBerry maker Research in Motion (RIMM) fell more than 2% after the company announced it was laying off 2,000 employees -11% of its workforce.
ETrade (ETFC)'s stock jumped more than 5% on talk that TDAmeritrade (AMTD) may consider a bid for the online brokerage.
After the market close, investors will get results from chipmaker Texas Instruments (TXN, Fortune 500) and video rental company Netflix (NFLX).
The results from Netflix will be closely watched, in part due to massive run Netflix shares have had run this year - up nearly 60%.
As of Friday's close, RBS strategists observed that the earnings growth rate for the S&P 500 for Q3 2011 was at 16.7%. Of the 88 (28%) S&P 500 companies who have reported Q2 earnings, 75% beat estimates, 13% were in-line, and 12% were below estimates.
Kimberly-Clark Corp's (NYSE: KMB) Q2 earnings beat analysts estimates today. According to the figures, earnings rose to $1.18 per share versus expectations of $1.15.
“There’s room for the Canadian economy to continue with a relatively strong degree amid EU sovereign-debt problems", Stephen Gallo, head of market analysis at Schneider Foreign Exchange, said. “I’d be very surprised if a portion of the recent strength we’ve seen in the Canadian dollar weren’t related to safe-haven flows.”
08:00 Italy Consumer confidence (July) 103.7 104.0 105.8
Investors buy the safe-haven currencies like the Swiss franc and yen today as global sovereign debt concerns were heightened by a further downgrade of Greece and the continuing political disputes in the US over the country’s debt ceiling.
Moody’s, the rating agency, on Monday downgraded Greek sovereign debt by three notches, saying that following last week’s €159bn bail-out by the European Union and International Monetary Fund, the country’s second major rescue pay-out, the risk of default was now almost a certainty.
“The announced programme implies that the probability of a distressed exchange, and hence a default, on Greek government bonds is virtually 100 per cent,” Moody’s said. But the rating agency was broadly positive about the bail-out, adding that Greece could now stabilise and eventually reduce its overall debt burden.
The situation in the US also dominated investors’ concerns, as meetings between President Obama and senior Republicans to discuss lifting the country’s debt ceiling to avoid default ended in stalemate.
Although the dollar was broadly weaker it still managed gains against the pound as UK data disappointed. Research institute Markit revealed that UK household finances were at the weakest level since its survey started in 2009.
EUR/USD failed to break above $1.4400 and retreated to the lows around $1.4357. Rate still remains under pressure.
GBP/USD holds within the $1.6260/$1.6310 range.
USD/JPY continues to recover after it teated bids ahead of Y78.00. Rate currently holds around Y78.34.
There is no major US data for today.
EUR/JPY holds above earlier printed lows around Y112.07. Cross currently holds near Y112.36. Offers remain at Y112.80, extending to Y113.00. Bids at lows.
EUR/USD holds higher after breakng above $1.4384 (61.8% Fibo of $1.4418/1.4330) and extends recovery to $1.4395. Next resistance seen at $1.4395/00 (76.4%). Break above opens a move toward the overnight highs at $1.4418 with offers seen placed on approach to $1.4420.
AUD/USD retreats from session high on $1.0834 to current $1.0828. Small stops reported of note at $1.0890 ($1.0889 May 11 high), further stops at $1.0925 and $1.0950. Next target comes at $1.1012 (2 May high). On the downside stops through $1.0790/85, bids behind at $1.0775/70.
USD/JPY Y78.20, Y78.60, Y79.20, Y79.50, Y80.00
EUR/JPY Y111.75, Y114.80
Getting flashed up from a few directions that middle east seen showing good demand incurrent trade. Rate trades around $1.4375, but remains off retrace level at $1.4384 (61.8% $1.4418/1.4330).
Resistance 3: Y79.30 (Jul 15 and 20 high)
Resistance 3: Chf0.8250 (Jul 22 high)
Resistance 3: $ 1.6440 (Jun 14 high)
Resistance 3: $ 1.4580 (high of July)
01:30 Australia Producer Price Index (YoY) (Q2) 3.4% 3.1% 2.9%
01:30 Австралия Индекс цен производителей, кв/кв II кв +1.2% +0.6%
01:30 Австралия Индекс цен производителей, г/г II кв +2.9%
22:45 Новая Зеландия Торговый баланс, млн Июнь 605 404
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