06 June 2012: Markets gain, Spain makes plea for aid

Markets- Stocks gain today, Commodities higher: The impending action from the world’s central bankers in terms of providing growth stimulus has seen the demand for risk assets increase. The mood although positive, is still cautious.
•    Stocks: FTSE All World is unchanged as FTSE Eurofirst climbed 1.2%; In Asia mood is bullish as FTSE Asia Pacific gained 1.3% and Tokyo’s Nikkei rose 1.81%; S&P 500 was flat in the last session but will open a bit higher today; FTSE 100 has climbed 0..9% to 5309
•    Currencies: Euro trades at nearly $1.25 against Dollar; Sterling against dollar is up 0.7% at $1.5481
•    Debt: The German Bunds rose to 1.26% while US 10-years gained to trade at 1.60%,
•    Commodities: Brent Crude is trading at nearly $100/barrel; Copper gains 1% today to sit at $3.36/pound; Gold advanced 1.3% to $1637/ounce

Global Economy
•    Spain makes explicit plea for bank aid: The Spanish PM warned that the country’s situation was in ‘extreme difficulty’ and has made a plea for external sources to revitalise the banks. Due to the perceived high risk, Spain doesn’t have its doors open to the markets. An auction of up to €2bn of bonds is planned for Thursday.

•    Australian GDP surges in first quarter: Australian GDP increased by almost twice as much as analysts had predicted owing to gains in household spending and heavy investment in mining projects. GDP expanded 1.3% from the previous quarter, and the GDP growth in the year to March was 4.3%

Companies
•    Lloyds sells distressed Australian loans: Lloyds is attempting a further clean up by selling a large basket of its loans portfolio in Australia. It plans to sell its holdings of £809 million to J.P. Morgan and Blackstone for less than half the value at £388 million.

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