IMF agrees a standby agreement (SBA) with Ukraine

Thursday, March 27, 2014

IMF just announced that it has agreed a $14-18 billion standby agreement (SBA) with Ukraine, with the prospect to reach a total of $27 billion over the next two years. The reaction in the European equity markets was fairly tepid as the CAC, DAX and IBEX indices started to decline slightly between 0.2% and 0.35%, in early trade. The euro continues to remain under pressure, trading around 1.376 against the US dollar.

 

In the US, the Dow Jones index retreated by 0.6% and the S&P 500 index fell by 0.70% last night as the Federal Reserve Bank said that there were “qualitative concerns” over five US banks’ capital plans, warning that the Fed would not allow them to survive possibly in the event of another financial crisis. The plans of the US subsidiaries of HSBC, RBS and Santander as well as Citigroup have been rejected. Furthermore, Bank of America and Goldman Sachs managed to have their programmes been approved only after re-submitting them to include more conservative plans for buybacks and dividends.     

 

Oil: Brent front month futures have been consolidating around $107 per barrel as investors remain cautious following President Obama’s comments about tougher economic sanctions against Russia, including in the energy sector. The WTI front month contract has been trading just above the $100 per barrel level.

EUR Spot Daily Chart

EUR Curncy (Euro Spot )  Daily 27 2014-03-27 09-02-59

Dow Jones Index Daily Chart

INDU Index (Dow Jones Industrial 2014-03-27 09-02-21

Brent Front Month

CO1 Comdty (Generic 1st 'CO' Fut 2014-03-27 09-01-51

 

 

Events for today:

 

0930

UK

Feb

Retail Sales  

1230

US

Q4

GDP & Personal consumption

1230

US

w/e

Weekly jobless claims

1400

US

Feb

Pending Home Sales

1430

US

w/e

EIA Nat Gas

1500

US

Mar

KC Fed Manufacturing

2330

JP

Feb

CPI

 

All times UK Local Time

Economic Market Calendar

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