27 Mar 2012: Equities rise on QE3 hopes, Coutts fined for laundering

  • Equities rise to highs, Commodities lose: Equities rise on hopes for another Fed QE and many indices consolidate their highs. FTSE All-World has risen to its 8-month high, while S&P is likely to gain over a 100bp on open. Commodities have lost demand after the rally late last week.
  • Stocks: FTSE All World is up 0.5%, and FTSE Eurofirst is up 0.3%; In Asia, FTSE Asia Pacific has gained 1.9%, while Tokyo is the day’s winner with a 2.4% gain; S&P 500, driven on QE3 hopes is expected to gain 1.4% at open; FTSE 100 is adding 0.1% at open and is at 5903
  • Currencies: Euro lost half a percent and is at $1.3342; Dollar has gained 0.31% against Yen and is at 83.11. Sterling has gained 0.12% against dollar and is at 1.5983
  • Debt: US 10-years gained 0.2% and are at 2.25%; Bunds at 1.92%; Gilts are at 2.29%
  • Commodities: Brent Crude lost 12 cents to $125.53/barrel; Copper falls 0.3% and is at $3.87/pound; Gold adds 0.1% to $1693/ounce
  • OECD urges ‘ambitious’ reforms in Eurozone: OECD have said that the Eurozone will need ambitious structural reforms to overcome its debt problems. It also forecast a 0.2% growth for the bloc in 2012. The gist of their report says that the lack of credit combined with fiscal consolidation will cause short term contractions. While it has said more money in circulation will generally help the crisis, it recommended even further consolidation in Ireland, Greece, Spain and Italy even as these countries struggle through an imminent third bout of recession.
  • Coutts fined for laundering: Coutts, the UK-based private bank, has been fined £8.75mn, for violating laundering rules after failing to conduct proper checks on some of the politically eminent people banking with it. The regulators found deficiencies in 73 out of the 103 files it checked, with most problems centred around Middle-East and Easter Europe.
  • BMW to recall 1.3 million cars for rechecks: BMW is to recall 1.3 million cars for rechecks because of a potential fault that could cause electrical problems or fire. They have decided to do this because of a small number of incorrectly fitted battery cable cover in the 5 and 6 series models assembled at one particular plant in Germany between 2002-2010. No accidents/injuries have been reported because of this fault yet.

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