DAILY

20th June 2013

PSI20: -3.41% DAX30: -3.28% FTSE100: -2.98%
th

S&P500: -2.50%

NIKKEI225: -1.74%

Euro zone finance ministers have enabled the 8 tranche of financing to Portugal. Additionally, they could get to an agreement regarding European banking union. 7 year maturities extension is now approved and Euro promises support after troika is gone. More>> PSI 20 fell 3.41% as it recorded the worst performance among EU partners. Yields on 10y Government bonds have increased to more than 6,4%. Chinese poor industrial activity and Feds intention to stop monetary stimulus led EU markets down and have moved away investors from peripheral. More>> The euro area and the International Monetary Fund said Greece is assured of sufficient international aid next month as long as the country presses ahead with its economic-overhaul program. More>> Pressure on services and manufacturing activity in the euro zone eased more than expected in June, analysts said the signs point to a more moderate downturn. More>> Euro zone finance ministers will decide on Thursday when and how their bailout fund can invest in a bank to save it from failure More>>

U.S. stocks fell, giving the Standard & Poors 500 Index its biggest decline since 2011, as global equities tumbled after the Fed said it may phase out stimulus and Chinas cash crunch worsened. More>> Fears about the Fed buying fewer bonds later this year pummeled the U.S. bond market, pushing benchmark yields to the highest levels since August 2011. More>> U.S. home resales rose in May to the highest level in 3-1/2 years and prices jumped, a sign the housing sector recovery is gathering steam and could give the economy a significant boost this year. More>>

Asian equities got hammered on Thursday after the Federal Reserve signaled an end to its bond-buying program later this year while shrinking factory activity in China further added to market gloom. More>> Chinas manufacturing is shrinking at a faster pace this month, a trend that threatens to stem an economic recovery in the euro area from the currency blocs longest-ever recession. More>> Japans government is ready to provide extra spending if a sales -tax increase next year damps economic growth, a senior finance ministry official said. More>>

OIL (WTI 94.87 $/bbl; -2.98% / Brent 102.11 $/bbl; -3.48%): Crude prices dropped on Thursday after weaker-than-expected Chinese factory spooked investors, while growing sentiments that the Federal Reserve is closer to scaling back stimulus programs pushed the commodity even lower. More >> GOLD (1273.75 $/oz t; -5.34%): Gold prices hit lows not seen since September of 2010 in U.S. trading on Thursday after a manufacturing gauge for the Philadelphia area of the U.S. beat expectations and strengthened the dollar, which tends to trade inversely with gold. More >>

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