DAILY

PSI20: -1.08% DAX30: -1.85% FTSE100: -1.99% S&P500: -0.70%

29th May 2013

NIKKEI225: +0.10%

Brussels rejects the plea made by Portuguese Government for more time to balance public accounts. The Government insists in the need for more time given the current Economic instability. Recession will be higher than forecasted for 2013. Portuguese Economy is expected to drop 2.7% of GDP during current year and grow slower than Government and Troika estimates in 2014. Lisbon is down by 1.08% following European stock market main trend. Uncertain regarding Fed stimulus policy continuity led to losses right after three day positive performance.

Frankfurt is bracing for as many as 30,000 demonstrators to descend on the city for four days of protests against European leaders handling of the sovereign-debt crisis. The EU is urging the U.S. to allow time for international talks before it imposes swaps rules on EU lenders, saying that the current timetable would lead to huge legal and operational uncertainty. Incoming Bank of England Governor may move to depreciate the pound, a gambit that would see the UK join the global battle of countries competing to soften their currencies.

Stocks finished off their worst levels but still closed in the red, dragged by defensive sectors, as investors continued to question when the Fed would curtail its stimulus program. Worries that Federal Reserve may begin to slow its stimulus efforts sent mortgage rates last week to their highest level in a year, drying up demand for home refinancings. The SEC slapped the Nasdaq with a $10 million fine for alleged securities laws violations resulting from its "poor systems and decision-making" during the Facebook IPO.

Asian stocks rose on Wednesday but ended off session highs as a weak AUD, volatile Japanese markets and renewed fears of the U.S. Fed. tapering its bond-buying program scaled back momentum. The International Monetary Fund cut its growth forecast for China this year to 7.75 percent from a previous 8 percent, citing a weak world economy and exports. The Australian dollar tumbled to its lowest level since October 2011 in early Asia trade on Wednesday, extending this month's sharp slide against a broadly-stronger U.S. currency.

OIL (WTI 93.18 $/bbl; -1.67% / Brent 102.44 $/bbl; -1.88%): Oil fell on concern that the Fed will cut debt purchases as the economy of the worlds biggest oil-consuming nation strengthens. GOLD (1393.25 $/oz t; +0.94%): Gold futures advanced for the first time in three sessions as lower prices lured buyers of the physical metal. WHEAT (700.38 $/bu; +0.99%): Wheat rose as hot, dry weather in the southern U.S. Great Plains threatens the winter crop and rain in northern states delays planting of spring varieties.

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