Europe's largest economy report factory orders report for the month of July, the first of second half economic reports. Seasonally adjusted orders fell in July by 2.2 percent, compared with the prior 3.6 percent, while on the yearly basis, not seasonally adjusted orders reached 17.7% in July, compared with analysts' estimates of 20.6 percent, and below the previous 24.7 percent.

Read more

Add comment (0)

Hits: 28

(SZ) Swiss Aug Unemployment Rate: 3.6% v 3.6%e; Unemployment Rate (Seasonally Adj): 3.8% v 3.7%e

(HU) Hungary July Preliminary Trade Balance: €240.7M v €500Me

(TU) Turkey July Industrial Production WDA M/M: 0.3% v 8.7%e; Y/Y: 8.9% v 10.2% prior; Industrial Production NSA Y/Y: 8.6% v 8.0%e

Previous session overview

The euro lost ground against both the dollar and the yen Tuesday as market concerns about the financial health of European banks came back to the fore.

The euro was at USD1.2807 and JPY107.67 as of 0450 GMT, from USD1.2879 and JPY108.51 in late London trading on Monday (New York was closed for a holiday).

News and Events:

Two central bank meetings had already taken place before European desks even opened today (BoJ and RBA), but the outcomes have been largely in accordance with expectations. Unsurprisingly, the Bank of Japan held its overnight rate steady at 0.10%, but Governor Shirakawa and his colleagues failed to exploit this opportunity to influence the rapidly appreciating JPY to any noticeable degree.

With the US out of action overnight, the session (as you can imagine) was less than stellar as far as price action and general developments.

Of note however were the 2 central bank meetings overnight which both yielded a no change result in Japan and Australia. The rhetoric out of Japan was practically nonexistent, while the Australians (for the first time mind you) drew a direct correlation to the potential (much anticipated on my part at least) slow down in China which for those out there that weren't sure would put Australia back into the dark ages in the context of the current global climate.

Sunrise Market Commentary

• Bund higher on bottom fishing
  A session without history yesterday, as US markets were closed. Investors were looking for bargains and bought some German bonds. While a consolidation phase has started on global bond markets, there are early and still diffuse signs that risk aversion might become again a theme.
  Read more

  Add comment (0)

  Hits: 21

Concerns over European debt are back as the members of the Eurozone prepare to auction some EUR 80 billion in September. This is roughly twice the 43bn that was auctioned in August. Spain is looking to auction 7bn in September up from 3.5bn in August.

What's going on?

We expect European equity markets to open roughly flat. However the continued rumour on another package from Obama & Co. has especially made steelmakers in Asia move against the trend of falling equity markets overnight.

Economic Data

(AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH TARGET RATE UNCHANGED AT 4.50%, AS EXPECTED

(JP) BANK OF JAPAN (BOJ) LEAVES TARGET RATE AT 0.10% AS EXPECTED; ECONOMIC ASSESSMENT UNCHANGED IN SEPTEMBER

The US Dollar Traded thinly against most pairs in a range bound fashion as the US market was closed for Labor Day Holiday. The USD remained near post Nonfarm lows though as Asian and European stocks rallied. Looking ahead we have Europe's August Employment Trends previously 97.