European equities are trading in minor positive territory heading into the second half of the session, boosted by month-end flows adding to risk-on sentiment. Earlier this morning, German parliament formally approved the Greek aid bill with 473 voting in favour and 100 voting against the measures which has also added to confidence in European equities. Spanish bank, Bankia has seen losses of 19% today after it was announced the company is to cut about 6,000 jobs and forecast a loss of EUR 19bln for 2012. The bank is also set to sell EUR 50bln of assets through 2015 and reduce its branch network by 39%. In terms of data releases, Eurozone unemployment was released this morning and came in at record highs although this was expected so no reaction was seen across asset classes.
Overnight JPY weakness was seen across the board, and has carried through the European session, after the Japanese cabinet approved JPY 880bln in stimulus measures. The Japanese finance minister also said that he wants to work with the BoJ to end deflation. An option barrier at 82.90 could provide resistance in USD/JPY, currently trading at 82.68 (+56 pips).
Looking forward, the session remains light for tier-1 macroeconomic data although Chicago PMI for November is due to be released at 1445GMT/0845CST as well as any further economic commentary out of the US and Europe.
Print 11:57, 30 Nov 2012 - Market Analysis - Source: RANsquawk
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