Tuesday, June 19, 2012

A Quick Glance at News (19/06/2012)


European stock-index futures rose as Group of 20 leaders debated the region’s financial crisis, Asian shares edged down on Tuesday as rising Spanish bond yields stoked fears its tottering banking system is dragging Madrid deeper into crisis, snuffing out a relief rally that followed a win for mainstream parties in Greece's weekend election.
Crude oil futures slid as much as 0.4 percent after declining for the first time in three days yesterday. Spanish bad loans in April jumped to 8.72 percent of lending, the highest level since 1994, and data from the Bank of Spain showed. That overshadowed election wins by pro-bailout parties in Greece. International talks with Iran resume today in Moscow over the country’s nuclear program, with President Barack Obamasaying there is still time for a diplomatic resolution.
All the sanctions that are supposed to come into force on July 1 will come into force on July 1,” EU foreign-policy spokesman Michael Mannsaid in an interview today in the Russian capital. “We’ve taken a political decision that this is an important measure to put pressure on the Iranian regime.
The Australian central bank's decision to cut the cash rate in June was "finely balanced," according to the minutes from the latest interest-rate meeting, released Tuesday. The Reserve Bank of Australia minutes showed members weighed up relatively strong domestic data with "clear evidence suggesting a softening in global conditions." Uncertainty about the future in Europe had increased significantly, the RBA said.
The dollar slid against the euro and yen before the Federal Reserve begins a meeting today amid prospects policy makers will consider further monetary easing steps to sustain the U.S. economy.
Leaders at the Group of 20 major economies' summit will promise to take "all necessary measures" to resolve the European debt crisis, according to several reports citing a draft version of the group's communique

Gold rose for an eighth consecutive session on Tuesday, the longest winning streak since July last year, after a weekend victory for pro-bailout parties in Greek elections failed to shake off worries about a worsening debt crisis in Europe.
Treasury bonds firmed slightly in Asia on Tuesday, ahead of a U.S. Federal Reserve meeting at which the central bank could decide on more monetary stimulus to blunt the impact of Europe's debt crisis on the struggling U.S. economy.
Foreign investors' holdings of Japanese government bonds (JGB) rose to a record of nearly $1 trillion, Bank of Japan data showed on Tuesday, reflecting their flight to safety as the debt crisis in Europe shows no sign of letting up.
China Leads Nations Boosting IMF’s Firewall to $456 Billion. Emerging-market nations including China and Brazil formalized funding pledges to the International Monetary Fund, helping to almost double its lending power to protect the world economy from Europe’s debt turmoil.
China’s commerce minister said his nation’s economy is heading for a rebound this month following government measures to support growth, adding to signals of confidence among officials that the slowdown is ebbing.
Microsoft Corp. unveiled its own family of tablet computers Monday, using the brand of its Surface computing project for the new line of portable devices.
Face book Inc is paying $55 million to $60 million to buy Face.com, according to people familiar with the matter, acquiring the company that provides the facial-recognition technology used by the world's largest social network to help users identify and tag photos.

Asad Khan
Financial Analyst  (CFB)
050-8774861
asad@cfb.ae