|
v Markets
respond positively to the new proposals from the Greek government
v The
ECB reportedly increase the cap on ELA for Greece
v Malaysians’
median monthly household income in 2014 increase by 11.7%
annually
v The
international reserves of BNM amount to RM390.2 billion as at 15 June 2015
v The
Bank of Japan maintains its upbeat view on the economy in its monthly report
v Taiwan's
unemployment rate hold steady near its lowest point in more than a decade for
the third consecutive
month
|
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OVERNIGHT MARKET
UPDATE:
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·
US existing home sales rose 5.1% m/m to an annual pace of 5.35
million in May. The trend in home sales remains firmly upward.
·
In the euro area, details of the new proposals being offered by
Greece included: ending of early retirement options from next year and a
gradual increase in the retirement age to 67; a tax surcharge on middle and
high income earners; a levy on companies with a net income in excess of EUR500
thousand per annum. But Greece has refused to increase the value added tax on
electricity and concerns remain with respect to the implementation of some of
the proposed reforms.
·
The ECB reportedly increased the cap on the Emergency Liquidity
Assistance (ELA) for Greece by a further EUR2 billion to EUR87.8 billion. This
follows an increase in the ELA by EUR1.1 billion and EUR1.8 billion last week.
Greek banks continue to suffer significant deposit outflows, with reports claiming
that banks have introduced an ‘unofficial ceiling’ of EUR3,000 on over the
counter withdrawals.
·
In the currency markets, improvement in US housing drove a
bounce in the USD. Meanwhile, news of more promising negotiations between
Greece and Europe were treated relatively agnostically and the EUR was broadly
unchanged.
·
A reversal of safe haven flows was evident for Government bond
yields. US 10-year Treasury yields rose 11 bps to 2.37%, with yields on 10-year
German bunds up 13 bps to 0.88%.
·
Equities were buoyed by signs of progress on Greece. US bourses
were up 0.6%-0.7% during the trading session.
·
Crude oil prices closed flat, with volatility falling. Crude oil
volatility is currently 30%, down from 38% earlier in the month. Crude oil
prices may find some support this week from expectations of a 1.5 million
barrel decline in US crude oil stockpiles for the week ending 19
June.
Gold fell more than 1% as global equities jumped on possible signs of
progress in Greek debt talks, which curbed safe-haven demand for the metal.|
INDICATIVE MAJOR CURRENCIES
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