Todays news we are focusing on German IFO Survey and ECB’s Mersch talking.
Over in the Asian markets we saw equities benefit from the latest round of stimulus by the Peoples Bank of China thanks to Friday’s rate cuts, however there were concerns over the all-round health of the Chinese economy. Chinese Premier Li said that the 7% GDP growth target was never set in stone.
Reports from Barclays (L:BARC), Blackfriars and BlackRock said the rebound in China stocks following China’s measures to support their economy will likely fade as fundamental weakness is likely to outweigh (Bloomberg).
Over in Europe, the ESM said ti does not view a Greek haircut as politically stable (Bloomberg).
Moody’s affirmed Austria’s AAA rating, but revised its outlook to negative from stable. Fitch affirmed Spain’s BBB+ rating with a stable outlook and affirmed Italy’s BBB+ rating with a stable outlook (Bloomberg).
Barclays Prelim Pan Euro Agg month-end extensions +0.08 years (Prev. 0.10 years).
Over in the UK BoE Governor Carney said that 4% of the UK mortgage holders will be at risk of not being able to pay their mortgages if the BoE hike rates as expected and added that while there is no certainty rates will be hied, it is the central expectation of the MPC.
In the US Barclays lowered their US GDP 2015 tracker to 2.4% from 2.6% citing weaker than expected net trade and inventory accumulation in Q3.
Barclays prelim month-end extentions for US Treasury +0.11 years (Prev. +0.10 years).
In FX the USD-index remained firm having broken above it’s 50,100,200 DMA levels last week. JPY strengthened in trading sessions this morning amid profit taking in USD/JPY and traders positioning themselves for meetings from FOMC and BoJ this week.
WTI crude future held near last Friday’s lows with a lack of key data in the region. Goldman Sachs (N:GS) said crude prices could decline sharply as refine product inventories are close to maximum capacity (Reuters).