8 Mar 2012: Markets recover, China offers Remnibi loans

  • Stocks recover, Commodities slightly bullish: Hopes that the last few days of Greek negotiations will end positively lifts stocks. Traders are wary of the massive consequences should the Greek deal fail at the last possible moment, though. Optimism on Greek deal also reduces yields on Italian 10-year notes to 8-month lows
    • Stocks: FTSE All World is up 0.8%; FTSE Eurofirst is up 1.2%; S&P 500 expected to open 0.8% higher; FTSE 100 is up1.35%, and is at 5869
    • Currencies: Euro gains and is up to $1.3211
    • Commodities: Brent Crude surges to $125.48/barrel; Copper is up to $3.82/pound; Gold pushes past $1700/ounce again
  • China offers Remnibi loan to Brics
    • China looks to extend Remnibi loans to Brics nations in a view to go international with the currency
    • China are set to sign a memorandum with India, Brazil, South Africa, and Russia towards the end of March
    • This will seek to promote the use of Remnibi in international trading, rather than Dollar; currently, under 13% of China’s asian trade is transacted in Remnibi; they aim to push this figure up to 50%
    • Chinese Development Banks recently extended a loan worth $30bn to Venezuela’s state-owned Oil company. Half of this loan will be repaid in Oil
  • Other news, briefly
  • Quantitative Easing blamed for pension shortfalls: Corporate Pension shortfalls have increased by £90bn since the QE in England. While QE bolsters demand and hence prices, it has also led to deficits ‘looking bigger’.
  • Air France-KLM, Lufthansa report losses and ‘tough conditions’
  • Japan posts record current account deficit: This has mainly resulted from increased Energy imports after the shutdown of Nuclear Plants last year.
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