- German govt source: EU summit will produce no detailed decisions but seeks to accomplish important work on EU roadmap
- German govt source: Detailed deal on banks unlikely at EU summit
- German June adj unemployment rose +7,000, slightly worse than Reuters’ median forecast of +5,000. Adjusted unemployment rate 6.8%, steady from upwardly revised 6.8% in May (prev 6.7%)
- Eurozone June economic sentiment falls to 89.9 from 90.5 in May, but slightly better than median forecast of 89.5
- SNB’s Danthine: Swiss had rough road since onset of crisis. Franc cap is necessity for Swiss economy
- ECB’s Noyer: Europe has arrived at crucial moment, must advance towards more Federalism, stronger budgetary union
- Greece’s National Bank CEO: impaired loans in Q1 at 15.5%, pace accelerating
- UK Nationwide house prices -0.6% m/m, -1.5% y/y, fair bit weaker than median forecasts +0.1%, -0.6% respectively
- UK Q1 GDP (final) -0.3% q/q, -0.2% y/y. Y/Y read revised down from previous -0.1%
- JP Morgan’s losses may rise to $9 bln – New York Times
German govt source comments hit the wires this morning (see above) and quickly extinguished lingering hopes of anything meaningful coming from the two-day EU summit. Risk aversion rose and was fuelled further by the release of a disappointing German jobs report (see above) Talk of increased JP Morgan losses (see NYT’s story) also impacted negatively.
Eurostoxx down around 1%, gold off circa 10 bucks, oil touch lower, US treasury yields lower (benchmark 10 year at 1.5920% from early 1.6313%), yada, yada, yada you know the gig…..
EUR/USD down at 1.2425 from early 1.2515 having been as low as 1.2407 after sell stops tripped through 1.2440. Some further sell stops seen through 1.2400.
USD/JPY unchanged at 79.35 having dipped slightly to session low 79.22. Talk of semi official buy interest between 79.30 and 79.00 is lending some tenuous support against the risk off backdrop with it’s lower US treasury yields.
Cable lower at 1.5535 from early 1.5590. Talk of buy orders clustered 1.5500/10, sell stops below there.
EUR/USD down at 1.24
