Ransquawk Overnight News Summary 22/11/07

Discussion in 'Trading' started by Ransquawk, Nov 22, 2007.

  1. Ransquawk

    Ransquawk ET Sponsor


    The benchmark 10-year JGB yield sank to a 26-month low early in the session, however a pull back in the Nikkei into positive territory left JGB's trading back to unchanged at 137.30 by 0625 this morning (RTRS)

    BoJ's Nakamura said the that future downside risks for US economy are increasing but negative effects of subprime limited in Japan; has concerns about deteriorating consumer confidence, sees Japan's economy continuing to grow +2% over potential, and that the BoJ will adjust rates gradually (RTRS)**

    Japan's finance minister Nukaga said FX movements, subprime impact on US consumption and high oil prices are being closely eyed, and that the world would lose confidence in Japan if fiscal reform efforts were halted (DJ)

    Global economic growth is likely to ease next year due to the impact of the US subprime mortgage crisis, but the effect on China will be limited, according to PBOC's Zhou (Xinhua News Agency)

    SPREADS - US 2s/10s (0630) Unchanged (100.34 bps at 2100); US 10s/30s (0630) 45.19 bps (45.21 bps at 2100); EURO 2s/10s (0630) Unchanged (37.20 bps at 2100); EURO 10s/30s (0630) Unchanged (42.42 bps at 2100)

    US/GE 10s (0630): 0.63 bps (0.00 bps at 2100)
    UK/GE 10s (0630): Unchanged (54.92 bps at 2100)

    The strong EUR and weak USD is making it increasingly difficult for European companies to do business overseas, reported in today's Spiegel Online

    China may be hit hard when investors borrowing in yen to buy into higher-yielding assets unwind there "carry-trades", according the the Chinese Ministry of Commerce (RTRS)

    New Zealand finance minister Cullen said the RBNZ must retain its inflation-fighting focus, CPI is persistently high, weak USD and high NZ interest rates are driving NZD higher (DJ)

    US crude futures were steady above $97 overnight, after falling nearly a dollar in the previous session on EIA data showing a big increase in crude stockpiles at a key storage hub (RTRS) At 0625 crude was trading $97.54 up 25c.

    Fears of recession in the US spook commodity markets (Times) base metal prices dive as investors flee and speculators pump up the price of oil and gold.

    The above commentary was provided by Real-time Analysis & News (R.A.N) Ltd (known to traders as “Ransquawk”) operates from 0630GMT until 2200GMT to incorporate full coverage of the US bond and equity futures markets. Currently R.A.N covers Bond, STIR and Index futures in the US, UK and Eurozone as well as NYMEX crude and Gold. Furthermore, R.A.N has a stand alone Forex service (Ransquawk FX) which covers all the major currency pairs. Coverage is based around the economic calendar for that day but the product finds its value looking at flows, rumours and breaking news and delivers that information to the customer via an internet ‘squawk-box’.

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