JPMorgan Early Look at the Market – Fri 8.6.10
Adam Crisafulli (212) 272-8635; firstname.lastname@example.org
Jonathan Rich (212) 272-7069
Tim Hanks (212) 272-2151
Mike Pagliarulo (212) 622-2668
Distribution Note – the Early Look is published each morning by 6:50amET. If you don’t receive
in a timely manner via email, you can check this link for the latest: www.morganmarkets.com/mi
• SP500 futures are flattish at 1124
• Europe: DJ Euro Stoxx up 50bp; FTSE up 66bp; CAC/DAX up 40-50bp.
• Asia: Japan dn 0.1%; China +1.4%; Hong Kong +0.6%; India dn 0.2%; Australia flat
• Sov CDS – some widening – Greece +7bp; Ireland, Italy, Portugal, Spain all flattish-to-out
• Treasuries – 2yr yields ended Thurs @ record lows at 0.534% and are ticking up small to
0.549% today; 10s off small too; 30s are flattish.
• Commodities: copper up 0.3%; copper off 0.3% (has been falling for last three sessions);
gold flat (ended Thurs flat too).
• FX – DXY up ~20bp and GBP/EUR off same amount; eurozone currencies weak after some
soft eco #s (IP in Germany and UK); yen off ~20bp vs. the US$.
Today’s Top Stories
• Quiet morning all around with little newsflow and stocks again trading flattish for the most
part. China is the major outperformer overnight (rallying 1.4%), after China Banking
regulators issued a statement saying the dn 50-60% housing stress test does not mean the
government’s assessment of market trends or policy has changed, providing some
reassurance to the market.
In Japan, a few articles out discussing whether the BoJ would ease policy further w/a former
BoJ official saying they may ease if the yen rises to under 80 however a separate Bloomberg
article says the BoJ is probably not ready to ease further yet despite the rise in the Yen.
In Australia, the RBA released its quarterly Statement on Monetary Policy (SoMP) with a
similar tone to that offered by the RBA on Tuesday in the statement accompanying the
Board’s decision to leave the cash ra