Morning Meeting 20/07/12
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Let's start the day with the words used by German Finance Minister Wolfgang Schäuble at the start of the debate on Spanish banking bailout:
“We are helping Spain in this extraordinary situation to deal with the exaggerated nervousness on financial markets and by doing so we are making a contribution towards financial stability in the euro-zone as a whole,” and ”The Spanish state will be liable to the EFSF and in the future to the ESM for the repayment of the loans,” said Mr. Schäuble. “Nothing else is possible under the agreed treaties and laws.”
German Parliament voted 473 to 97—from a total of 583 valid votes—to approve awarding up to €100 billion in loans from the European Financial Stability Facility, the euro-zone's temporary bailout facility, to allow Spain to refinance its banks; clearing the way for Euro-zone Finance Ministers to approve the Spanish bailout in a conference call today.
While , as Schäuble said, European politicians were buying time, China was pointing out that it will not relax property control policies and will instead seek to keep a “firm grip” on the real estate market to prevent a rebound in housing prices, Xinhua News Agency said. The real estate market in Asia has long been seen as a time bomb by investors world wide, reason why the news sent Asian benchmarks lower.
Nikkei fell 0.95% to 8,711.84, Shanghai Composite Index fell 0.42% to 2175,75, while the Hang Seng was able to trade in positive territory to 19,602.21 or 0.22%. Gold rose 0.11% to 1,582.20$ while Oil (WTI) fell 0.60% to 92.10 giving back yesterday gains. The Eur/$ cross traded 0.18% lower to 1.2259$.
Today, traders will be busy in performing the July derivatives expiration, while investors will be ready to act as soon as any news from the EU Finance Ministers' conference call will spill over.
Have a nice day.
Originally posted at www.77sigmatrading.com