Asian markets slightly better this morning, a preliminary manufacturing PMI reading out of China this morning showed that the slowdown may be easing with recent easing measures starting to work.

In Europe, the main news is that Moody’s have lowered their outlook on Germany, Holland and Luxembourg’s Aaa rating to negative from stable, whilst affirming Finland’s Aaa rating. The change is due to increased likelihood of a Greek Euro exit and need for greater financial support for the weaker nations. According to sources close to the Spanish Government, if the ECB does not resume its bond buying programme on Spanish bonds, the government may considering asking for a full bailout. European equity futures are pointing to a slightly higher open.

In FX, we saw an initial sell off in the EURUSD following the Moody’s announcement, with the pair again testing the 1.21 level.

 

Posted by Philip Ball | Sales and Trading