Risk markets were sold off deeply earlier today after French borrowing jumped in today’s bond auctions even though demand was solid. In addition, Markets are in deep worry of the situation in Hungary and the possible impact on European banks. However, risk markets are staging a strong rebound in early US session afte strong employment data. The ADP report showed an impressive 325k expansion in the private job sector in December, nearly double of expectation of 175k. That’s also the strongest number since ADP survey began in 2001. Planned layoff, according to the Challenger report, dropped -1.6% mom in December, making the lowest number since June. Initial jobless claims also dropped slightly to 372k in the week ended December 31. Major European indices extend the intraday rebound and is … Read entire article »

By: Barbara Zigah In Asian trading, the Euro continues to hold close to multi-year lows versus the Australian Dollar and Japanese Yen as Eurozone troubles come back into focus ahead of an auction of French sovereign debt later in the trading day. Yesterday’s German bond auction resulted in a bid-to-cover ratio of 1:1.3 on the sale of €4.06 billion of the €5.0 billion offering, an improvement over last November’s disastrous bond sale but disappointing nonetheless. France will try to raise €8 billion at their auction today, and the concern is that a less than positive outcome could renew worries of a French credit rating downgrade. On the flip side, strong response will give the Euro a boost and helping support potential short-covering. As reported at 11:31 a.m. (JST) in Tokyo, the Euro … Read entire article »

Euro remains soft after overnight’s selloff, with EUR/USD pressing 1.29, EUR/JPY below 100 while EUR/AUD is hovering around record low. Focus will first turn to France’s bond auction today. France plans to sell up to EUR 8b in debt today, including securities that mature in 2021, 2023, 2035 and 2041. Markets are still waiting for actions from rating agencies after SP placed 15 eurozone nations on review in December while Fitch cut France’s rating outlook. Euro has been weak since yesterday’s lackluster and today’s result, if uninspiring, would possibly trigger deeper selloff. Economic data would remain the a major focus too. This week’s risk rally has been triggered by a string of solid manufacturing data. and investors will look into UK PMI services, US ISM non-manufacturing index and Canadian Ivey … Read entire article »