European Market Update 3/19 - Swiss Industrial Production Reaches Multi-Year High

Discussion in 'Trading' started by TradeTheNews, Mar 19, 2007.

  1. TradeTheNews

    TradeTheNews ET Sponsor

    - The European indices are currently trading higher in today’s session led higher on increased takeover speculation as rumors circulate about a possible Barclay’s for ABN Amro bid, and after Tui announced plans to merge with First Choice Holidays.
    - European government bonds are trading lower in the session giving up gains made last week as investors roll back into equity. Bonds are also lower as traders add to bets that the ECB will raise rates within the coming months. Over in the UK gilts are trading lower as well.
    - Swiss industrial production for the fourth-quarter rose to its highest quarterly level in six years, while y/y industrial production rose to its highest level in six and a half years. Swiss industrial production was led by electrical equipment and watch production.
    - The US Treasury’s Kimmitt said in a speech delivered in Berlin that the US economy remains strong, noting that housing market softness in the US appears to be stabilizing.
    - The ECB’s Garganas said overnight that the ECB will not hesitate to act against price risks, pointing out that inflation risks remain on the upside. Garganas named wage developments as the top concern for inflation risks, noting that growth is near potential.
    - In a quiet session on the energy front, crude oil futures are trading just above the unchanged level. Spot gold is trading slightly higher in the session, while spot silver is relatively unchanged, and front month copper futures are trading lower.