Danske Markets

The big event this week was the 3Y ECB LTRO allotment on Wednesday. The allotment ended at EUR489bn, which was considerably more than the market expected. The number could be interpreted both...

ECB member Bini Smaghi endorses QE for the eurozone if deflation risks emerge Jobless claims drop to the lowest level since April 2008 pointing to a payroll growth close to 200,000Republican Senate...

It is an understatement that it has not been a good year for the global economy or the global markets. We started the year with a horrible natural disaster in Japan, but the dominating theme...

Short-lived relief from the ECB liquidity injection yesterday. US equities ended the day with a modest gain, but Asian markets are in negative territory this morning. US bond yields on the rise after...

Main forecast changes• EUR/USD: Last month we cut our three-month and six-month EUR/USD forecast to 1.30. This target was reached last week, which poses the question: what now? Until a trough in...

The markets continue to be event driven. This is in particular the case for government bond markets, but also global  stock markets seem to be  more  sensitive to the development in the...

Key newsStrong rebound in risk assets – US stocks closed 3% higherEuropean bond spreads narrowed further following a strong Spanish bill auctionBrent oil trades above USD107 and EUR/USD above...

We recommended selling GBP/RUB (49.80) for a target of 47.00 and with a stop at 51.00 on 10 October. Today we recommend to book a 0.22% profit as GBP/RUB has decoupled from relative rates. Spot return...

With today’s rate announcement the Riksbank achieved - if anything - a monetary tightening. Rates on the first four FRA-contracts rose 6-9 points and the krona strengthened. This was not a...

Key newsEuro area finance ministers agree to channel EUR150bn to the IMF US equities trade lower, led by declines in financial stocks RBA minutes released this morning provide support to AUD The...

The euro area economy faces significant headwinds and is most likely in recession currently. We expect the economy to shrink in both Q4 2011 and Q1 2012. However, we do expect the recession to be...

Ireland on brink of return to recessionIrish GDP contracted sharply in Q3 posting a quarterly decrease of 1.9%, which could push Ireland back into recession if GDP declines again in Q4.Ireland’s...

Key newsBelgium was downgraded to Aa3 by Moody's on Friday – Fitch puts Spain and Italy on review for a possible downgrade US stocks closed with minor gains, but risk off has returned in Asian...

Global• A fairly quiet week in the US with no tier-1 movers. Main event will likely be negotiations on extending the payroll tax cuts and extended unemployment period. Agreement is so far not in...

On Wednesday, Norges Bank surprised the market by cutting the Folio rate by 50 basis points. In a note sent out yesterday, we illustrated some of the similarities between the countries. In some sense...

Market commentIt is getting darker in the Northern hemisphere, but after the winter solstice next week the days will start to get brighter – albeit slowly. Whether the same can be said about the...