Asian markets are trading lower today, as Euro Zone finance ministers put a hold on a rescue package for Greece and demanded more action and a parliamentary seal of approval before providing the bailout.
Greece must pass its latest austerity package into law and identify 325 million Euros ($431 million) in spending cuts before European governments sanction a second bailout for the country.
Greek Prime Minister Lucas Papademos stated yesterday that the government has reached an agreement on an austerity package needed to secure the 130 billion Euro rescue.
But investors kept a cautious view over Greece's debt restructuring prospect and this uncertainty with respect to Euro Zone debt worries led to rise in risk aversion in the global markets today.
China’s trade balance stood at a surplus of $27.3 billion in January as against a previous surplus of $16.5 billion in December.
US unemployment claims declined by 15,000 to 358,000 for the week ending on 3rd February from previous 373,000 a week ago. Wholesale inventories in the US increased by 1 percent in December.
UK’s Asset Purchase Facility increased by 50 billion Pounds to 325 billion Pounds in January from previous 275 billion Pounds in December. Official Bank Rate remained unchanged at 0.5 percent in January. NIESR GDP Estimate remained unchanged at -0.2 percent in January.
The CME Group cut trading margins for crude oil, gold, silver and copper contracts while increased margins for natural gas which will be effective after the close of business on 13th February 2012.
It lowered initial margins on Nymex crude oil by 8.9 percent to $6,885 a contract from the prior $7,560. Trading margin for gold was lowered by 11.8 percent to $10,125/contract from $11,475 and silver margin was cut by 13.5 percent to $21,600/contract from $24,975/contract.
Margins to trade copper were cut by 13 percent to $6,750 per contract from $7,763/contract, while margin requirements for Nymex natural gas were raised by 8.5 percent to $2,565 per contract from the previous $2,363/contract.
The US Dollar Index (DX) weakened slightly by 0.1 percent on Thursday as news that Greece reached an agreement on austerity measures led to rise in US equities which affected demand for the low-yielding dollar.
The index touched an intra-day low of 78.43 and closed its trading session at the level of 78.65 yesterday. We expect the US dollar to trade higher today, taking cues from uncertainty with respect to Greece debt worries.
The Euro witnessed gains on Thursday and rose around 0.2 percent, on the back of news that Greece reached an agreement on austerity measures in order to secure a rescue package to avoid a debt default.
This led to rise in European markets and dollar weakness which acted as a positive factor for the currency. The Euro touched an intra-day high of 1.3321 and closed at the level of 1.3286 yesterday. European Minimum Bid Rate remained unchanged at 1 percent in January.
Courtesy: Angel Commodities
Looking for Agri Research? Visit research.commodityonline.com
