News Headline Summary

US MID-SESSION UPDATE - 12/11/12

Today has been a quiet session so far with thin volumes and many US market participants are away from their desks for Veteran’s Day. Greece has been a dominant theme following yesterday’s parliamentary vote, both in the European session and after the close. Recent reports suggest the ECB is to cut the Greek ELA ceiling for T-bills to EUR 3bln from EUR 7bln and accept fewer t-bills and more alternative securities and collateral. Despite a cut to the ceiling, this effect is seen as overcompensated by accepting other securities with worse credit ratings. A draft of the Troika report has hit the wires which indicated an extension of 2yrs will be agreed upon for the Greek budgetary measures, and attention now falls on today’s Eurogroup press conference for any clarity on the situation.

Equity markets have traded with a clear lack of direction although there was some slight downside following the Wall St opening bell. In similar price action T-notes were seen drifting throughout US trade but now sit flat on the day. EUR/USD has traded within a very tight range since the London fix and the USD-Index is also now flat on the session; trading 81.042 last.

Looking ahead there are no data points on the calendar however as already noted the Eurogroup are scheduled to give a press conference this evening, tentatively pencilled in for 2100GMT. The Greek PM is also due to speak following the Wall St. close, his first public address since the austerity bill vote late yesterday.

Print 17:53, 12 Nov 2012 - Market Analysis - Source: RANsquawk