Ramsey
27-08-2002, Tue 10:32 AM
عن دواوجونز نيوزواير
EUROPEAN OUTLOOK: Trendless Before U.S. Figures
Euro-USD 0.9762 gain 0.0038 up 0.4%
Stlg-USD 1.5280 gain 0.0060 up 0.4%
USD-Franc 1.5070 loss 0.0065 dn 0.4%
ZURICH (Dow Jones)--European shares may try a feebly higher opening, while government bonds ride Treasurys' overnight strength. The euro opens in a range against the dollar.
STOCKS: European shares might open slightly higher after Wall Street's late comeback, but prices will then stabilize and some could even sink back into the red. Monday's bumpy session continued to reflect the volatile conditions in the market, although gyrations have narrowed in scope.
U.S. economic data later will determine the course for European shares as well. On the corporate agenda, Telecom Austria reports first-half earnings.
BONDS: Euro-zone government bonds should trail U.S. Treasurys slightly higher to start, then hold little changed pending key U.S. economic reports on durable goods and consumer confidence.
Euro-zone government bonds were mostly lower Monday, but recovered from earlier losses.
Bunds continued to underperform U.S. Treasurys Monday, with the yield spread on 10-year notes widening to 40 basis points late Monday from 35 late Friday.
"As such, it is difficult to find a compelling reason for the underperformance of European bond markets (versus Treasurys) and current high short- and long interest rates (given lower economic growth expectations)," Deutsche Bank analysts said in a research note.
"Even though yields could back up further in the near term due to the weaker technical position and rebound in equity markets, we believe this trend will be short-lived and recommend taking advantage of the recent selloff to build longs in five-year and 10-year sectors," they added.
FOREX: With talk of parity firmly in the background, the euro faces a crucial test of will this session, when the U.S. will present critical figures on durable goods orders and consumer confidence. These figures should give investors a clearer idea of which of the two economies is slowing more. For now, the euro starts in a range of around $0.97 to $0.98.
A surge in the Australian dollar, meanwhile, came on a rumored options play involving a major bank, dealers said.
EUROPEAN OUTLOOK: Trendless Before U.S. Figures
Euro-USD 0.9762 gain 0.0038 up 0.4%
Stlg-USD 1.5280 gain 0.0060 up 0.4%
USD-Franc 1.5070 loss 0.0065 dn 0.4%
ZURICH (Dow Jones)--European shares may try a feebly higher opening, while government bonds ride Treasurys' overnight strength. The euro opens in a range against the dollar.
STOCKS: European shares might open slightly higher after Wall Street's late comeback, but prices will then stabilize and some could even sink back into the red. Monday's bumpy session continued to reflect the volatile conditions in the market, although gyrations have narrowed in scope.
U.S. economic data later will determine the course for European shares as well. On the corporate agenda, Telecom Austria reports first-half earnings.
BONDS: Euro-zone government bonds should trail U.S. Treasurys slightly higher to start, then hold little changed pending key U.S. economic reports on durable goods and consumer confidence.
Euro-zone government bonds were mostly lower Monday, but recovered from earlier losses.
Bunds continued to underperform U.S. Treasurys Monday, with the yield spread on 10-year notes widening to 40 basis points late Monday from 35 late Friday.
"As such, it is difficult to find a compelling reason for the underperformance of European bond markets (versus Treasurys) and current high short- and long interest rates (given lower economic growth expectations)," Deutsche Bank analysts said in a research note.
"Even though yields could back up further in the near term due to the weaker technical position and rebound in equity markets, we believe this trend will be short-lived and recommend taking advantage of the recent selloff to build longs in five-year and 10-year sectors," they added.
FOREX: With talk of parity firmly in the background, the euro faces a crucial test of will this session, when the U.S. will present critical figures on durable goods orders and consumer confidence. These figures should give investors a clearer idea of which of the two economies is slowing more. For now, the euro starts in a range of around $0.97 to $0.98.
A surge in the Australian dollar, meanwhile, came on a rumored options play involving a major bank, dealers said.