Barclays PLC
Societe Generale upgraded the group to “hold” from “sell,” saying the sale of its fund business to BlackRock, along with other actions in the second quarter, significantly added to its capital position.

New York Times Co
The publisher may be looking to sell the Worcester Telegram & Gazette together with the Boston Globe and is interested in passing on $59M in pension liabilities to the buyer, The New York Times reported.

Phoenix Technologies Ltd
The software maker for the personal-computer industry agreed to sell 5.8M common shares at $2.25 each to current and new institutional investors. The deal price is 22% below the three-day volume-weighted average price of the stock.

BE Aerospace Inc
The world’s largest maker of aircraft-cabin interiors may have its debt ratings reduced below investment grade by Standard & Poor’s as weak aircraft orders reduce the company’s sales and profit.

TRW Automotive Holdings Corp
The automotive supplier announced Friday that it amended its $2.5B primary credit agreement and was upgraded by J.P. Morgan to “overweight” from “neutral.”

"Nonfinancial corporates have likely frontloaded their issuance this year and have little need to
raise more funding for refinancing. In addition, another driver of issuance - M&A activity - is slowing into 2H."

Pushes to fresh highs for the day, finally vaulting $1.4080 to find stops, momentum thus far stalling the pair shy of $1.4090 as reported supply continues to slow upside progress. Offers seen to $1.4100 and beyond there at $1.4110/20.

Gains extend to Y96.18 area now as the pair traies to gain a firmer footing atop Y96.00 area of the 200d ma but no conspicuous players in the latest nudge higher, one trader says, affirming that flows remain scrappy here and elsewhere. Dollar last at Y96.15.

The yen dropped versus most of its major counterparts as a report showed confidence in the European economy increased in June, encouraging Japanese investors to buy higher-yielding assets overseas.
The euro gained versus the yen as the increase in European sentiment added to evidence record low interest rates are helping to pull the region out of a recession.
The yen dropped after the European Commission said in Brussels today that an index of executive and consumer sentiment in the 16 nations that use the euro increased to 73.3, the highest level since November, from a revised 70.2 in May.
“Any sign of improving economic conditions could encourage renewed outflows from Japan,” wrote Derek Halpenny, head of currency research at Bank of Tokyo-Mitsubishi in London, in a research note today.
The European Central Bank is likely to keep its main refinancing rate at a record low of 1 percent on July 2, according to the median forecast of economists. The same day, the U.S. Labor Department will report employers cut 355,000 jobs in June, according to the median forecast of economists. The elimination of 345,000 positions in May was the lowest number since September.
“The news and data over the coming week is expected to be asset-market-friendly, supporting risk appetite, suggesting that the U.S. dollar will remain under broad based pressure,” currency strategists at BNP Paribas SA led by London-based Hans- Guenter Redeker wrote in a research note today.

Citi economist Steven Weiting saus US output is still falling, but Q3 will see a modest rise in GDP that "could well mark the end of statistical recession." Citi ests +0.5% Q3 real GDP and +1.2% 4Q but warns "near term we face weaker employment and core retail sales news in June."

Stocks continue to trade near recently reached session highs, as only the health care sector (-0.1%) trades with a loss.

"We stay positive and look for the S&P500 to move over 1000 in 2H. The coming 2Q reporting season is likely to post a small positive surprise driven by nonfinancial sectors. US economic data are set to improve further into 3Q given our raised GDP forecast of 2.5%, well above the 0.5% consensus."

Stocks have rebounded from an early bout of selling and now trade near session highs. Energy stocks (+1.8%) remain the best performers, while health care stocks (-0.1%) continue to lag. Small-cap stocks are seeing some selling pressure of their own. As such, the Russell 2000 is down 0.3% as nearly 70% of its components trade lower. As for mid-caps, the S&P 400 is up a healthy 0.6%.

Pullback from earlier European highs above Chf1.0900 so far finds a cushion just ahead of the Asian lows in the Chf1.0830 area. Key support seen at Chf1.0808 (21-day m/a) after last week's break above, while some stops interest is seen under Friday's lows in the Chf1.0800/1.0795 area.

Crude has extended early morning gains and is now approximately 2.3% higher at $70.77 per barrel following news of planned reserve increases in China along with word that the IEA cut its demand forecast by 3 million barrels per day through 2013. Crude is trading just off session highs of $70.92. Natural gas, however, remains in negative territory and is back below the $4.00 level, currently down 2.6% at $3.99.
Precious metals are lower as the dollar is showing modest gains. Gold is 0.4% lower at $935.60 per ounce, while silver is showing a sharper decline and is currently 1.9% lower this morning at $13.860 per ounce.

Prices are generally higher after wires reported that Nigerian rebel group, MEND attacking Shell's offshore Forcados plant. Traders also note comments in the Japanese media, that China will be expanding its strategic oil reserves by 160% to 270m/bls in the next five years, helping to push prices longer in the curve. WTI Nymex crude oil trades at $70.45, up $1.29 on session.

A choppy start has given way to selling pressure, though losses aren't severe at this point. Among the major sectors in the S&P 500, health care (-1.1%) remains the only to trade with a loss of at least 1%.
However, energy (+0.5%) and technology (+0.2%) are the only two major sectors sporting gains.
Treasuries are making strong gains in the early going. The benchmark 10-year Note is up a healthy 20 ticks, which has pushed its yield below 3.5%.

Nudging back above stg0.8500, but again seen meeting resistance place toward stg0.8505. Through here and rate can push on toward stg0.8515, with offers noted from this level, strengthening into stg0.8520/25. Bids remain at stg0.8480/70, more at stg0.8455/50.

HFE economist Ian Shepherdson calls for -250k Jun jobs, better than consensus, saying this is "true trend" after the financial panic effects are wearing off. He says "claims and help wanted numbers are still consistent with rapidly declining payrolls."

Oil and energy stocks adding support as crude prices gain strength, with Total SA (FP), BP (BP.) and BG Group (BG.) still leading. The financial sector is holding strong, with BNP Paribas (BNP) and Lloyds Banking Group (LLOY) strongest. Banks are also seeing some interest in the options market, with the Liffe exchange reporting some large volumes in 280 calls on Barclays (BARC), in both Jul09 and Aug09 contracts. On the other side, mining stocks are still weaker despite some gains being made in the metals markets, with Anglo American (AAL) and Xstrata (XTA) hitting hardest.
The FTSE-100 is up 23pts (+0.5%), CAC-40 up 48pts (+1.5%), and Xetra-DAX up 69pts (+1.4%).

Data released
08:30 UK M4 money supply (May) final 0.2% 0.2% 0.2%
08:30 UK M4 money supply (May) final Y/Y 16.6% 16.6% 16.6%
08:30 UK Consumer credit (May), bln 0.3 0.3 0.2 (0.3)
09:00 EU(16) Economic sentiment index (June) 73.3 71.0 70.2 (69.3)
09:00 EU(16) Business climate indicator (June) -2.97 - -3.11 (-3.17)

The dollar rose after China said the U.S. currency may keep dominating global trade and ruled out any “sudden” changes to its foreign-exchange reserves. The dollar gained after Guan Tao, deputy head of the international payment department at the State Administration of Foreign Exchange, wrote that the greenback may maintain its status as the world’s reserve currency.
The yen fell against the New Zealand dollar after a Japanese report showed retail sales slid for a ninth month in May, reducing the currency’s appeal as a refuge. Japan’s Trade Ministry said retail sales dropped 2.8% in May from a year earlier and industrial production climbed 5.9% from April.
UBS AG revised its long-term forecasts for the dollar against the euro and the yen. The dollar will trade at $1.30 per euro by year-end, $1.40 at the end of 2010 and $1.50 by end 2011, Ashley Davies wrote in a report. The greenback will trade at Y100 yen by the end of the year, Davies said.

EUR/USD opened around $1.4017. Euro fell down to $1.3984, with traders then noting Russian demand around the base. A UK clearer then said to be the buyer as the rate lifted back above $1.4000, the recovery stretching to the $1.4030 area and then – to $1.4050.

Extends recovery to $1.4055, after touching lows in early Europe of $1.3980, but so far holds off Asian highs of $1.4078. Offers now reported in place between $1.4070/80, a break to open a move toward $1.4110/20.

EUR/USD: $1.4000, $1.3740
USD/JPY: Y95.35, Y95.25, Y96.20, Y94.00
AUS/USD: $0.8030
USD/CAD: C$1.1525, C$1.1500, C$1.1680

GBP/USD extended day's highs to $1.6547, but reported sell interest placed toward $1.6550 continues to cap the pound. Rate currently trades back around $1.6536. Offers now said to extend to $1.6565, a break to open a move on toward $1.6600.

EUR/USD extends recovery to $1.4055, after touching lows in early Europe of $1.3984, but so far holds off Asian highs of $1.4078. Offers now reported in place between $1.4070/80, a break to open a move toward $1.4110/20.

The dollar nudged higher on Monday as demand for risk assets was tempered by recent losses on equity markets and ahead of important economic data from the US.
Equity markets were generally higher on Monday, but most finished last week lower as demand fears hit mining stocks.
But with non-farm payrolls, the monthly US survey of job creation, looming on Thursday, few investors were willing to take out fresh speculative positions.

- Financing conditions improved
- EMU potential growth likely to be sharply lower after crisis

Resistance 3: Y97.20
Resistance 2: Y96.50
Resistance 1: Y95.60
Current price: Y95.40
Support 1: Y94.80
Support 2: Y93.80
Support 3: Y93.50
COMMENTS: Dollar holds within the narrow range with resistance remains at Y95.60. Strong resistance comes on Y96.50 (Jun 25 high), then - near Friday’s highs on Y97.20. Support comes at Y94.80 (Jun 23 lows).Break under will target May 22 lows on Y93.80 and further to Y93.50

Resistance 3:Chf1.1150
Resistance 2:Chf1.1020
Resistance 1:Chf1.0920
Current price: Chf 1.0875
Support 1:Chf1.0820
Support 2:Chf1.0760
Support 3:Chf1.0630
СOMMENTS: Dollar holds below session highs on Chf1.0910/20 (minor resistance). Strong resistance comes near Wednesday’s highs on Chf1.1020 (also 38.2% Fibo of Chf1.1720 - Chf1.0590 decline). Above the bullish momentum strengthens and opens the way to Chf1.1150 (50%).Support comes at Chf1.0820 (session lows), stronger one – on Chf1.0760 and Chf1.0630 (Wednesday’s low).

Resistance 3:$1.6800
Resistance 2:$1.6660
Resistance 1:$1.6560
Current price: $1.6524
Support 1: $1.6420
Support 2: $1.6210
Support 3: $1.6100
COMMENTS: Sterling rises, heading for Friday’s high at $1.6560 (minor resistance). Neat band of resistance is around $1.6660. Stronger level remains at $1.6800 (50% Fibo of $2.0144 - $1.3470 decline). Minor support is at today's lows on $1.6420. Stronger support is near $1.6210 (Tuesday’s low) and then – on $1.6100.

Resistance 3:$1.4330
Resistance 2:$1.4270
Resistance 1:$1.4180
Current price: $1.4026
Support 1:$1.3980
Support 2:$1.3880
Support 3:$1.3780
COMMENTS: Techs on euro hasn’t changed. Resistance comes at session high on $1.4180 with a break above opens the way to $1.4240/70 (04-05 Jun highs). Stronger level is near Jun 03 high on $1.4330. Support comes at session low on $1.3980, below – on $1.3880(Jun 24-25 lows). Strong level is near $1.3780 (38,2% Fibo of $1,2880-$1,4330 rise).

According to IEA estimates, oil prices are likely to remain tame over the coming five years, rising gradually to $72.40 per barrel in 2014. Supply from non-OPEC producers is expected to peak in 2011 at the equivalent of 57.73 million barrels per day (mb/d).

EUR/JPY tested both sides of the range, extending the lows in early dealing under Y133.40. Rate now holding around Y133.55, bids seen back at Y133.20/00 with stops below. Offers noted at Y134.10/15 in small, stronger at Y134.90/135.00 with techs traders then seeing resistance at Y135.40 (21-day moving average).

The FTSE-100 is trading higher this morning, having moved into positive territory shortly after the open. Mortgage approvals data had little effect on the index, despite net mortgage lending being the lowest level on record. Financial stocks are generally stronger. Mining stocks are also offering support as metals prices recover a little, although Xstrata is underperforming slightly. Vodafone is boosting the index by a few points, amid talk that the mobile phone company is exploring a bid to buy Deutsche Telekom. The FTSE-100 is currently up 17pts (+0.4%), CAC-40 up 12pts (+0.4%), and Xetra-DAX up 25pts (+0.5%).

EUR/USD
Offers: $1.4030, $1.4055/60, $1.4085/10, $1.4120
Bids: $1.3980/70, $1.3950/40, $1.3925/20

GBP/USD
Offers: $1.6560/65

USD/JPY
Offers: Y96.00, Y96.45/50, Y96.90/00
Bids: Y95.10/00, Y94.90 (stops)

EUR/GBP
Offers: stg0.8520/25, stg0.8550
Bids: stg0.8505/00, stg0.8480

EUR/CHF
Offers: Chf1.5250, Chf1.5300, Chf1.5350, Chf1.5380

The dollar rose against the euro for the first time in three days after China said it won’t alter its foreign-currency reserves suddenly, easing concerns overseas investors will shift away from the greenback. The dollar gained versus 14 of the 16 major currencies after China central bank Governor Zhou Xiaochuan told reporters in Basel, Switzerland, yesterday that the nation’s “foreign exchange reserve policy is always quite stable.” The yen fell after a Japanese report showed retail sales slid for a ninth month, reducing the currency’s appeal as a refuge from the global slump. “The dollar will keep its role as reserve currency,” said Koji Fukaya, a senior currency strategist at the Tokyo unit of Deutsche Bank AG, the world’s biggest foreign-exchange trader. “China is unlikely to change the composition of its foreign- currency reserves any time soon. That’s dollar positive.”
The dollar gained to $1.4007 per euro from $1.4056 in New York on June 26. It rose to $1.6464 per British pound from $1.6525. Against the yen, the U.S. currency climbed to 95.38 yen from 95.18 yen. Japan’s currency traded at 133.57 per euro from 133.85. The yen is poised to weaken against 14 of the 16 major currencies this quarter, heading for a 13.5 percent loss versus the Brazilian real and a 13 percent slide against the South African rand.
EUR/USD has broken 1.4000 key support in the early European morning after the Yesterday PBOC comments. During the Asian session, pair has been trading in a small range between 1.4000/30, but in the last hour EUR/USD has fallen around 50 pips from 1.4032 to post intra-day low at 1.3983, continuing its declining from 1.4118, June 26 high. Today, the pair is falling 0.50% from opening price action to the current 1.3990/1.4000. Last week, EUR/USD rose 0.90% from Monday opening price at 1.3950 to close 1.4068 on Friday. Pair reached 1.4138 as intra-week high and 1.3826 as intra-week low.

EUR/USD: $1.4000, $1.3740
USD/JPY: Y95.35, Y95.25, Y96.20, Y94.00
AUD/USD:$0.8030
USD/CAD:C$1.1525, C$1.1500, C$1.1680

The front-month Nymex WTI Aug 09 contract was last 31 cents lower at $68.85, having been as low as $68.36.

Major European bourses are seen narrowly mixed in early trade Monday. UK spreadbetters Cantor Index are calling the FTSE down 1, the DAX up 6, the CAC unchanged and the Eurostoxx 50 up 2.

The dollar fell against most of its major counterparts after China repeated its call for a supranational currency “delinked” from sovereign nations.
The greenback headed for its biggest weekly loss against the euro in a month after the People’s Bank of China said the International Monetary Fund should manage more of members’ foreign-exchange reserves. A rally in Treasuries this week pushed the yield on the benchmark 10-year note down the most since December, lowering expected returns.
“The dollar’s status as a reserve currency is being questioned,” said Benedikt Germanier, a foreign-exchange strategist in Stamford, Connecticut, at UBS AG, the second- largest currency trader. “Relative yield momentum is abating. There are reasons to sell the dollar.” The U.S. currency declined 0.8 percent to $1.4096 per euro at 12:53 p.m. in New York, from $1.3988 yesterday, extending its loss this week to 1 percent. The dollar fell 0.9 percent to 95.11 yen from 95.95 and was poised for a 1.2 percent weekly decline, its third consecutive drop. Brazil’s real was headed for a 1.5 percent gain versus the dollar this week as the sale of shares in the credit card network Visa Inc.’s local affiliate attracted foreign investors to the world’s biggest initial public offering in more than a year. The real was little changed at 1.9427 today after earlier reaching 1.9240, the strongest level since June 12. The Swiss franc rose against the euro and dollar on speculation traders will test the central bank’s resolve to keep its currency weaker.
Foreign-exchange strategists said the Swiss National Bank sold the franc twice on June 24 and once more yesterday as it tried to support the economy. Nicolas Haymoz, a Swiss central bank spokesman, declined to comment yesterday on whether the bank acted in foreign-exchange markets. “The SNB has to convince markets that it considers a strong franc as unwelcome,” Unicredit SpA analysts Armin Mekelburg in Munich and Roberto Mialich in Milan wrote in a report today. “We fear that franc bulls will start further attempts to wipe out the line in the sand of 1.50.”The franc climbed 0.4 percent to 1.5236 against the euro, one of only five major currencies to advance today versus Europe’s 16-nation currency. The franc advanced 1.1 percent to 1.0820 compared with the dollar.

paring early gains and turning lower as financials weighed. The Nikkei 225 was lower by 93.92 points, or 0.95%, to stand at 9783.47. The broader-based TOPIX was 11.48 points lower at 915.32. Volume for the Nikkei constituents totalled a preliminary 1.419 bln shares, with 37 issues trading higher, 180 lower and 8 unchanged.

Resistance 3: Y97.20
Resistance 2: Y96.50
Resistance 1: Y95.60
Current price: Y95.37
Support 1: Y94.80
Support 2: Y93.80
Support 3: Y93.50
COMMENTS: Dollar tries again to rise with resistance comes at Y95.60. Strong resistance comes on Y96.50.Stronger level is near Friday’s highs on Y97.20. Support comes at Y94.80 (Jun 23 lows).Break under will target May 22 lows on Y93.80 and further to Y93.50

Resistance 3:Chf1.1150
Resistance 2:Chf1.1020
Resistance 1:Chf1.0885
Current price: Chf 1.0863
Support 1:Chf1.0820
Support 2:Chf1.0760
Support 3:Chf1.0630
СOMMENTS:The dollar has become stronger to the nearest resistance at Chf1.0885. Strong resistance comes near Wednesday’s highs on Chf1.1020 (also 38.2% Fibo of Chf1.1720 - Chf1.0590 decline). Above the bullish momentum strengthens and opens the way to Chf1.1150 (50%).Support comes at Chf1.0820 (50%), stronger one – on Chf1.0760 and Chf1.0630 (Wednesday’s low).

The Hang Seng ended the morning session down 0.30% at 18554.

Resistance 3:$1.6800
Resistance 2:$1.6660
Resistance 1:$1.6600
Current price: $1.6482
Support 1: $1.6440
Support 2: $1.6210
Support 3: $1.6100
COMMENTS: Sterling set stable after growth. Resistance comes at highs on $1.6600/10, then – at $1.6660. Stronger level is around $1.6800 (50% Fibo of $2.0144 - $1.3470 decline). Minor support is at today's lows on $1.6440. Stronger support is near $1.6210 (Tuesday’s low).

Nikkei 225 opens down 0.11% at 9,866.28 on Monday. Then Japan's benchmark stocks ended the morning session higher, although just shy of the best levels. The Nikkei 225 was
up 38.74 points, or 0.39%, to stand at 9916.13.

Resistance 3:$1.4330
Resistance 2:$1.4270
Resistance 1:$1.4150
Current price: $1.4032
Support 1:$1.4000
Support 2:$1.3880
Support 3:$1.3780
COMMENTS: The euro decreases.The nearest resistance $1.4137/50 ( 24.06.09 high),ahead of $1.4270. Stronger level is June 03 high on $1.4330.The nearest support - $1.4000 (today's low), below - $1.3880 (yesterday's's low). The strong level is located on $1.3780 (38,2% FIBO of $1,2880-$ 1,4330).

Change % Change Last
Nikkei +29.79 +0.30% 9,907.18
Topix +7.03 +0.76% 926.80.
FTSE -11.56 -0.27% 4,241.01
DAX -24.09 -0.50% 4,776.47
CAC -33.37 -1.05% 3,129.73
Dow -34.01 -0.40% 8,438.39
NASDAQ +8.68 +0.47% 1,838.22
S&P -1.36 -0.15% 918.90
10yr Note -0.4000 -0.113% 3.506%
NYMEX Crude Oil -1.07 -1.55% 69.16
Gold +1.50 +0.16% 941.00

High Low Close
EUR/USD 1.4116 1.3981 1.4068
GBP/USD 1.6564 1.6365 1.6538
USD/JPY 96.04 95.03 95.21
USD/CHF 1.0949 1.0794 1.0837

EUR/JPY 134.91 133.69 133.84
EUR/GBP 0.8569 0.8501 0.8505
GBP/JPY 158.24 156.61 157.25
GBP/CHF 1.7999 1.7848 1.7900

06:00 Germany Retail sales (May) real unadjusted Y/Y -0.8%
06:00 Germany Retail sales (May) real adjusted 0.5%
08:30 UK Net Lending to Individuals (May) £1.3B
08:30 UK Mortgage Approvals (May) 43K
08:30 UK M4 Money Supply (YoY) (May) 16.6%
08:30 UK M4 Money Supply (MoM) (May) 0.2%
09:00 Е16 Consumer Confidence (Jun) -31
23:01 GB Gfk Consumer Confidence (Jun) -27
23:30 Japan Unemployment (May) 5.0%
23:30 Japan Household spending (May) real Y/Y -1,3%