News Headline Summary

DAILY US OPENING NEWS: Press reports suggested that Greece public sector restructuring said to be incomplete due to delays in implementation and the full Troika report on country likely to be delayed...

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Press reports suggested that Greece public sector restructuring said to be incomplete due to delays in implementation and the full Troika report on country likely to be delayed.

Fitch said that Italian bank loan impairment charges are to remain high. While Moody's said that Spain's banking system outlook remains negative.

Japanese stocks rallied to fresh multiyear highs, however bond yields dropped sharply, 30y bond yields have now fallen 30bps over the past couple of days to the lowest since at least 2006.

Market participants will now await the release of the latest jobs report from the BLS.

RANsquawk European Morning Briefing Video: http://youtu.be/-M4ctgYBdnw

Market Re-Cap
Heading into the North American open, equities in Europe are trading lower, with the latest move lower taking place in the last hour, driven by the German DAX index where sell stops were tripped on the break on 7800 and then through 7700 level. The price action was exacerbated by thin trade volumes, where the FTSE 100 trade volume is approx. 7.5% below and Eurostoxx volume trade volume approx. 12.5% below 20DMA levels. There was little in terms of fresh macroeconomic news flow as market participants remained on the sidelines ahead of the eagerly awaited jobs report from the BLS.

Asian Headlines
Japanese stocks rallied to fresh multiyear highs, however bond yields dropped sharply on long-dated JGBs. Borrowing costs on 30-year bonds have now fallen 30bps over the past couple of days to the lowest since at least 2006. Of note, Moody's said it sees risks in Bank of Japan's new easing policies over the long-term.

EU & UK Headlines
Press reports suggested that Greece public sector restructuring said to be incomplete due to delays in implementation and the full Troika report on country likely to be delayed.

Even though German 2/10 and 5/10s are flatter, the short end of the curve is under pressure, while the equivalent Swiss paper remains bid. The disparity between rates, with the Swiss 2y back at its lowest level since mid-January, indicates that market participants remain wary of potential shocks that the bail-in plans will have on the European banking system. Especially when considering that the chief executive of UniCredit said yesterday that uninsured deposits could be used in future bank failures provided global rulemakers agree on a common approach.

George Soros said Europe is adopting the same policies that led Japan into a quarter of a century of "slow death" that it is desperately trying to escape with "dangerous" new monetary expansion.

Cyprus Finance Ministry says there is no truth to reports of additional depositor losses.

Italy's Berlusconi says early elections not first option, according to ANSA. He added that Italy needs stable and strong government urgently and that polls indicate his bloc would win elections.

Portugal's Prime Minister Coelho says country is not preparing a second bailout. As a guide, Portuguese PM Coelho faces a Constitutional Court ruling on the legality of some elements in this year’s budget.

Dexia's main subsidiary doesn't rule out it will need ELA from the Bank of France again this year.

US Headlines
According to administration officials, the president’s budget plan would reduce projected annual deficits by USD 1.8trl over 10 years, even with the select spending increases. Together with the USD 2.5trl in deficit reductions that Obama and Congressional Republicans have agreed to since 2010, that would bring the total deficit reduction to more than USD 4.3trl over 10 years by the administration’s computations, which is just over the goal that both parties have set for stabilizing the growth of the national debt.

Equities
Heading into the North American open, equities in Europe are trading lower, with the latest move lower taking place in the last hour, driven by the German DAX index where sell stops were tripped on the break on 7800 and then through 7700 level. Basic materials and consumer services sectors underperformed and surprisingly, financials were less affected by the sell off.

Fitch said that Italian bank loan impairment charges are to remain high. While Moody's said that Spain's banking system outlook remains negative. Also of note, French banks are set to contest the French government's proposed fiscal plans, financial transaction tax and banking legislation.

For a full rundown of EU equity news, please refer to European Equity Opening News report located in research section. Complete rundown of US equity news will be available on the website at 1400BST (0800CDT).

FX
EUR/USD and GBP/USD traded steady this morning, with market participants in the wait and see mode ahead of the eagerly awaited jobs report from the BLS. Elsewhere, having traded above the 97.00 (USD/JPY) handle for the first time since August 2009 overnight, the pair has since edge lower and into minor positive territory.

Commodities
There were plenty of geopolitical related headlines to digest this morning. P5+1 talks are ongoing on Iran, while Russian news agency Vesti reported that North Korea is to fire a test missile towards Japan on April 15th. Also, reports that Russia is considering the evacuation of its diplomats in North Korea were denied by the Russian embassy in Pyongyang. This comes after the North Korean army announced that it has final approval for a nuclear attack on the US and is moving missiles to the east of the country.

Goldman Sachs raises H2 2013 balance gas forecast to USD 4.4/mmbtu from USD 3.75/mmbtu, based on weather and demand factors.

The IEA is in preliminary talks on building an alliance with China and other emerging nations. The deal would include an agreement by all countries to share their energy data.

Complete rundown of energy news is available in research section of the website.

05 Apr 2013 - 13:05 - Equities Bank Speaker - Source: RANsquawk

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