The recent release of the FOMC rate decision and comments saw the largest moves of the session, as the FOMC disappointed some by not announcing any further QE although they did announce an extension to Operation Twist. There was also lesser expectations of a change in language from the Fed, and a possible expansion to MBS purchases, but with no announcement to this effect this added to immediate disappointment. US equity markets saw immediate downside, with moves higher in US Treasuries and significant strengthening in the USD-Index. 13 minutes after this release, comments from EU's Van Rompuy caused a move back higher in riskier assets and strength back into the Euro currency.
The morning session saw the Greeks finally form a coalition after much anxiety and uncertainty after the Hellenic nation went to the polls for a second time last weekend. Despite this first step, there remains much to be done, most importantly pushing through the EUR 11.5bln in austerity measures needed in order to secure their next tranche of aid. The period over which these cuts must be made continues to be a topic of discussion as Samaras looks for an extension of two years, a measure unpopular and unlikely to be agreed upon by European leaders.
The energy complex has seen weakening since the NYMEX pit open, which continued into the DoE inventory numbers for the latest week. Numbers showed an unexpected build in the headline crude, prompted further moves lower in WTI, Brent, Heating oil and RBOB Gasoline.
Print 17:00, 20 Jun 2012 - US Equities - Source: RANsquawk
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