Danske Markets

Don't Rule Out Further Easing - But Things Have To Get Ugly FirstThe current Operation Twist is scheduled to be terminated at the end of June, which renders the 20 June FOMC meeting an obvious...

We believe deteriorating PMIs could trigger a move from the ECB. We now expect the ECB to lower interest rates at the June meeting. We expect a one-off rate cut of 25bp – leaving the refi rate...

China’s HSBC manufacturing PMI in May declined from 49.3 to 48.7 suggesting that growth remains stuck below trend with so  far few signs that growth is picking up substantially. On a...

Key NewsEU summit focused on growth and Greece. The leaders discussed Eurobonds as well as a common deposit insurance scheme.China’s HSBC manufacturing PMI declined to 48.7 in May from 49.3 in...

We have suggested entering a USD/JPY put butterfly. The rationale for the trade was for USD/JPY to trade within the 75.5 – 79.5 interval upon expiry in June. The pair is currently hovering just...

Bank of Japan (BoJ) as expected did not raise the limit for its asset purchases in connection with today’s monetary meeting. While BoJ sees increasing signs of the economy shifting to a pick-up...

Key NewsBoJ keeps monetary policy unchanged.Rising concerns about Greece leaving the euro once again weigh on sentiment as former Greek President Papademos said that “Greece is considering...

The US economy has so far proven resilient to the European crisis and the main risk does not come from slow euro area growth but from financial spillovers.We expect financial stress to get worse over...

A More Important "Yes" Than EverThe Irish people will vote on the European Fiscal Stability Treaty on Thursday 31 May. The referendum is crucial as it determines a crossroads for Ireland: either the...

Key newsRisk appetite improved a bit yesterday with equities up in the US and Asia.EU diplomats are planning "project bonds" according to FT.Focus today will be on UK CPI and US existing home...

• Newly elected president Vladimir Putin has approved a new government• Three fourths of the cabinet is new• We expect new winds but not radical changes in future movesAssessment And...

• While waiting for the Greek election on 17 June, we are likely to see continued uncertainty and stress in the markets. Things will get worse before they get better.• Amid this uncertainty,...

The latest IMM data covers the week from 8 to 15 May.Long USD positions at record high: The latest IMM data shows that investors added strongly to short EUR/USD positions last week. Bearish bets...

Key NewsG-8 summit  embraces further emphasis on  measures to support growth but fails to produce concrete results.Risk appetite continued to retreat on Friday, as US stocks posted their...

• This week, the scorecard  recommends  buying  SEK,  NOK and  USD while selling AUD, CHF and EUR (see suggested weights in portfolio in table below).• Not much is...

• Time to buy SGB1041 in ASW spread.• Heading down. Continuing pressure on rates likely in a troubled environment.TradesNew, buy SGB1041 in an ASW spread at -90bp. Profit/loss targets:...