FX: Not much besides consolidation in Asia;
USDmixed versus G10- USD gains versus NOK (0.40%),EUR, CHF (both 0.20%). USD flat against JOY, SEK,AUD. USD down near 0.08% vs. CAD, GBP. Asian FX isvery quiet, but posting modest gains vs. USD led byTHB, KRW (0.10-0.15%). PBOC set the yuan centralparity rate at Cny6.4684 against the dollar today,compared with Cny6.4680 set for the previous tradingday.
Equity markets all trading around 0.50%in the red in Asia with SHCOM down 0.75%. US boursesovernight closed lower; SPX -0.81%, DHIA -0.76%,BOVESPA -1.08%.
DATA/EVENTS IN THE DAY AHEAD (MNI)
It is a fairly sparse calendar for Europe again on Tuesdaywith data limited to the 0900GMT release of both
data for May and also the closer-watched
data for July, which is expectedto show the expectations index decline to -12.0 and thecurrent conditions slip to 85.0.
starts at1145GMT with the weekly ICSC-Goldman Store Salesdata, which is followed at 1230GMT by
data. The pace of housing startsis expected to rise to a 575,000 annual rate in June,which would be a second straight gain. US data thencontinues with the 1255GMT release of the weeklyRedbook Average
NEWSAustralia/ New ZealandRBA minutes signal no immediate rate rise.
A reviewof financial markets in the wake of European debt worrieswas the main topic of discussion at the RBA July 5 Boardmeeting indicating this would be main determinant of monetary policy in the near term, the minutes of themeeting showed. Domestic inflation took a backseat withthe minutes making no mention of expectations of a pick-up in inflation, rather saying there was more time at handto assess the likely strength of inflationary pressures inAustralia. The upcoming July 27 CPI data release wouldhelp shape views about inflation, and therefore the futurepath of interest rates, the minutes said.
JapanFinance minister Noda
cited by wires saying he willwatch markets carefully. No comment if will intervene inFX market, recent forex moves one-sided, Commentscome as dollar-yen slides to Y79.03 morning low,matching last night's NY low, while euro-yen has jumpedto Y111.72 high from Y111.46 earlier.
BoJ Deputy Governor Yamaguchi
testifies at theHouse of Representatives Budget Committee. Mustwatch high yen's negative impact closely, watching firmsmoving operations overseas. To take appropriate policyaction for economy. High yen has benefit, loweringimport costs.
Summer bonuses climbed 4.21%
to an average of Y728,535 before taxes, rising for a second straight year,according to a survey of 645 firms by Nikkei Inc.
Greek default or credit event "should beavoided". EUR continues to be "very solid currency".Euro area price stability underpins currency. Failure of US debt talks would create global problem. A stateexiting euro "not an assumption I envision"Earlier, new
French FinMin Baroin
spoke to the press inWashington. He said talks were going well ahead of Thursday's EU leaders’ summit and he was confident EUleaders would respond to the crisis, with investors beingreassured. He added that France would not back asolution leading to a "selective default".
Eurozone governments are considering a levy onbanks
a way to involve private creditors
in a bailoutof Greece, eKathimerini reports, citing a story inGermany's Die Welt newspaper.
Greek fin min
on the wires overnight says the
UScannot do much when it comes to buying Greekbonds.
Says Greece has not yet accepted a solution of selective default. Says if liquidity can't be secured by theECB it should be secured by the EFSF or the Eurosystem
Greek PM Papandreou
might make another attempt tofind some common ground with opposition leaders aheadof a euro zone summit in Brussels on Thursday, whichGreek government sources referred to as the mostimportant such meeting in the last 20 years, Kathimerini'sEnglish website reports. It is likely that the prime minister or Finance Minister Evangelos Venizelos will speak toopposition leaders, probably over the phone, before thesummit, the website says.
Germany's opposition Social Democrats (SPD)
haveoffered Chancellor Angela Merkel their support to get a"Marshall Plan" for Greece through parliament amidgrowing nervousness in her own conservative camp, theIrish Times says. Ahead of Thursday's emergencysummit, the offer to back substantial debt for Athens andother unpopular European decisions indicates that Berlinpoliticians are beginning to take to heart criticism of Germany's role in the euro zone crisis, the paper says.
As the first unpopular elements of SilvioBerlusconis austerity drive come into force this week,hitting the pockets of lower-paid Italians, pressure isbuilding to rein in the high cost of the country'spoliticians, who have amended the budget to protect their own interests, the FT says.
UKGeorge Osborne must reverse his VAT hike
to restoreconfidence and boost growth,
according to a leadingbusiness lobby group
, the Guardian reports. The rise to20% in January is battering hard-hit industries that have