Project Report in Finance of Bharti Axa Insurance Co

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        EQUITIES                              MORNING REPORT
    Invest with an edge                                                                                       June 13, 2011
    Invest with an edge                                                                                       June 13, 2011

INDEX        POINT       Chg.
NIFTY        5862.7
             5485        +32
                                        Markets are expected to to open on a flat note trackingfrom overseas
                                       Markets are expected to open down,negative note mirroring trends in
                                         Markets are expected open on a tracking weak cues mixed cues
                                             from overseas markets and of Portugal’s credit rating being
                                         weak regional markets on news lack of any positive triggers.
SENSEX      19521.25 +116
            19136.6 -181.5                            Support concerns over slowing domestic and global
                                         markets, as persistent@ 5649|| Resistance @ 5863.
SENSEX      18268.5 -116                               growth @ 5769|| Resistance @ 5933.
                                            economic Supportmay influence the investors sentiments.
Hangseng 22839.6 -37.6
Hangseng 22965       -42
(8.15 a.m.) 22246     -174                              Support @ 5432Resistance @ 5531
NIKKEI      9931
            10069.3      -5
(8.15 a.m.) 9441          -73
                                  MARKETS ON FRIDAY
US DJIA      11092
             11952       -95.28
                          -172    MARKETS YESTERDAY
                                   Morning Session: Markets had a gap down startred after makingto trade in the red taking
                                                           The markets slipped into the and continued a positive start, tracking
   YESTERDAY VOLUMES                               the weak Asian markets and red after low the bribery scam had not lower
                                      cues from the regional markets which were the fears ofand US markets brief periodleft the
                                  Morning Session: The market slipped into the as tradingturning positive for a which endedafter a
                                  subdued start.minds. that the Ireland bailout package would not stop the crisis from spreading
                                      on apprehensions
 BSE CASH(Cr)     4,619.48
                  2,638.60            to the Session: The market was range bound in afternoon trade.
                                  Afternoon rest of Europe.
                                   Mid Session: Benchmark indices recovered from their early loss based on buying in select
NSE CASH(Cr)      22743.62
                  8959.59          stocks at lower levels and indices started recoveringgreen terrain once again covering huge
                                      Mid Session: Benchmark the markets entered the from their days low and entered the
                                      positive terrain key benchmark indices reached their lowest closing level in nearly two
                                      ground from The intraday low.
                                  Closing Session: theon the back of better than expected second quarter GDP numbers which
                                  weeks Caution prevailed as the RBI is seen raising its key lending rate by 25 basis points at its
                                      stood at 8.9%.
 NSE F&O(Cr)     89453.69          Closing Session: Marketsreview not16 June 2011 to tame inflation. the week in the nega-
                                  mid-quarter monetary policy could on sustain their recovery and closed
                                   tive terrain mainly due to the panic sellingto close withthe bribery scam a second consecu-
                                      Closing Session: Indian markets managed on fears of steady gains on also on cues from
TOTAL (Rs. Cr)   116,428.33
                 168,887.50           tive day based on the robust GDP numbers that came in during the day, eventhough the
                                      the weak global markets.
TOTAL (Rs. Cr)   101,051.88
                                  MARKET NEWS were not so supportive .
                                      global cues
                                  MARKET NEWS
                                   Jan-Mar earnings to be detailed by: Idea Cellular, and Tourism Finance Corp
                                   Bhushan Power & Steel to raise up to $700 mln via international listing.
                     +491.88          MARUTI SUZUKI: The company's management has accepted the demand of the striking
  FII (Rs. Cr)                     State-owned MOIL Ltd's 33.6-mln-share issue subscribed 28.62 times at the end of Day 3.
  FII (Rs. Cr)       -170.05       GMR Group inks deal to sell to form a separate union, but said company InterGen to China
                                      workers at its Manesar plant 50% stake in its overseas power the union cannot be affili-
                                   Huaneng Group for $1.23 bln.
                                      ated to any political party signed a multi-year infrastructure management pact with US-
                                      HCL TECHNOLOGIES: Has or have outsiders as members
  DII (Rs. Cr)
  DII (Rs. Cr)        959.41
                     336.98           based Purdue Pharma L.P.
                                   SHIPPING CORP OF INDIA fixes follow on public offer price band at Rs.135-140 per share.
                                   RELIANCE INDUSTRIES: Company along with RELIANCE INDUSTRIAL INFRASTRUCTURE an-
                                   HINDUSTAN COPPER: Postpones plan for FPO fromits joint ventures Bharti AXA Life Insur-
                                                                                             December this year may launch it after
        PRECIOUS METALS            nounced buyout of Bharti Enterprises' 74% stake in Corp gets show cause notice from Envi-
                                      HINDUSTAN CONSTRUCTION CO’s subsidiary Lavasa
                                      Jan 15, 2011.
                                      ance Co Ltd and Bharti AXA General Insurance Co Ltd
                                      ronment ministry for violation of green laws.
     GOLD            Rs.22517
                     Rs. 20575
                     Rs.20405      KALPATARU POWER’s Open offer for 20% in JMC PROJECTS to start Dec 8 andclose Dec 27.
                                   OIL INDIA and OIL & NATURAL GAS CORP as TATA CONSULTANCY SERVICES, and HCL foray
                                      INFORMATION TECHNOLOGY: Majors such have joined hands with BPCL and IOC for
                                   into city gas distribution.race for Himachal data centre project cost estimated at 100 bln ru-
                                      INFOSYSTEMS are in set
                                      NEYVELI LIGNITE: To the up 2,000 MW unit in Kanpur; project.
    SILVER        Rs. 40840
                  Rs. 54539           pees, may be completed by 2014.
                                  MARKETS TODAY
                                  MARKETS TODAY
                                   SESA GOA: Will stop mining operations at Thakurani mine in Barbil, Orissa from Wednesday
          BASE METALS              Key SGX NIFTY is trading at 5462down by 23 point.
                                                  indices are trading mixed today,
                                   The Asian the expiry of its existing contract. with Japan's Nikkei rising higher backed by gains
                                      in shares of exporters.
    NICKEL        Rs 1030.6
                 Rs. 1024.6
                  Rs. 1054.1       The Indian government's fiscal deficit fell 33.8% onon Wall Street,trln concerns over slow-
                                      Asian equities fell in early session, mirroring peers year to 1.623 as rupees during Apr-Oct,
                                   The SGX NIFTY is trading at 5779 down by 6.5 points.
                                      the first seven months of recovery led investors to cut their exposure to riskier assets.
                                      down in global economic 2010-11.
   COPPER        Rs. 401.75
                  Rs 388.75
                                  MARKETS TODAY
                                  Res:5788-5826-5863|| Sup:5714-5677-5649
                                   Asian markets are trading in the red today as investors stay on the sidelines on news that
                                  NIFTY SUPPORT AND RESISTANCE LEVELS FOR THE DAY
          COMMODITIES                 Standard & Poor's may cut Portugal's credit ratings .
                                  Resistance — 5494, 5512, 5531 & Supports — 5469, 5453, 5432
  CRUDE OIL               3924
                     Rs. 4432
                      Rs. 3861     The SGX NIFTY is trading at 5879 down by 10 points.
                                  SECTOR ALERT
                                  NIFTY SUPPORT AND RESISTANCE LEVELS private DAY
                                  FERTILISERS: Government likely to allow FOR THEsector to import urea freely, but will peg the
   NAT. GAS           Rs.204.2
                     Rs.213.9     domestic price in a tight band around what it costs to produce urea locally, thus making imports
                                  Res:5893-5913-5933|| Sup:5831-5800-5769 F&O
   RUBBER         Rs 19504
                  Rs 19504
                 Rs . .22525      Nifty June futures ended the day at 5484.15, with a price decrease of –0.63% and an Open Inter-
                                  F&O decrease of –2.6% from the previous day’s future close. Market trend was negative due
                                  est (OI)
                                  Nifty December Futures regained its footing after losses in the early session. It closed at 5886.9,
    PEPPER        Rs .21790
                 Rs .23049
                  Rs 21880        to lower than expected closed and a selling by investors before the weekend.
                                  Nifty December FuturesIIP data a volatile session on Friday at 5778.15, with a premium of 26.2.
                                  with a premium of 24.2. We see that Open Interest (OI) has increased by 2.38% and that future
                                  We see that Open Interest (OI) has decreased by –3.87% and that future price has also de-
                                  price has also increased by 0.63%. We also see that premiums for the series have increased. This
                                  creased by –1.15%. This suggests a weak market with a bearish trend.
                                  indicates a positive consolidation in market.
                                                                                          June 13, 2011

                                TECHNICAL OUTLOOK
     Hedge Equities Ltd.

                                                                   The S&P CNX Nifty is still trading
                                                                    below the 100 days EMA which re-
                                                                    mains a negative bias for the current

                                                                   Oscillators like RSI has closed with
                                                                    negative divergence trade.

                                                                   Overall, the market may expect a
                                                                    negative bias until Nifty break up
                                                                    5515 level.

                                                                   Resistance — 5494, 5512, 5531 &
                                                                    Supports — 5469, 5453, 5432.

    R1         5494        R2     5512   R3            5531
    S1         5469        S2     5453   S3            5432

Events to watch today                         Corporate Actions update

                                                 Castrol India Limited : DIVIDEND RS 8 PER SHARE

IPO Updates

                                                                                                                                   June 10, 2011
                                                                                                                                   June 13, 2011

                                            FUTURES & OPTIONS
      Hedge Equities Ltd
      Hedge Equities Ltd

Futures Market:
                                     day at 5484.15, with a price decrease of –0.63% and an Open Interest (OI) decrease of –2.6%
      Nifty June futures ended the day at 5519.15, with a price decrease of –0.19% and an Open Interest (OI) decrease of –1.96%
                                                                 negative no to lower than expected IIP data markets and a inves-
      from the previous day’s future close. Market trend was mixed as dueclear trends emerged from globaland a selling by flat to
      tors before the weekend.
      slightly higher inflation data hit the markets.
                      5521.05 which means that the June months futures traded a discount of –1.65 a increase
      Spot closed at 5485.8 which means that the June months futures traded atat a discount of –1.9 andecrease from the previ-
           –1.9; this decrease in the discount does not indicate much some lingering weakness in the market although as we
      ous premium of 6.55; this decrease in the premium is a show of but does suggest some short covering possible. Overall
      trend over the past past few days trend has been consolidated..
      have seen from the few sessions has been consolidation.
                 futures ended at 5498.05 with a price decrease of and an OI increase of 3.82%; 4.72%; the market stands is
      Nifty July futures ended at 5575.8 with a price increase of 0.5%–0.64% and an OI increase oftrend fortrend for the market
      stands at slight negative.
      slight positive dependant on fundamental market cues.
Options Market:
                                                                    at 1.26 a decrease no change from the previous 1.35, this de-
      Nifty 3 month Put-Call Ratio (PCR) on the basis of OI stood at 1.35 with almostfrom the previous days PCR ofdays PCR, this
      crease in the PCR is seen due to a increase in the OI of OI of Puts over the increase in puts of Calls This stability seen
      stability in thePCR is seen due to ansimilar increase in the calls over the decrease seenin the OIOI. Calls. saw short buildup
      while market does suggest some consolidation, but could be a precursor to a volatile movement in the market.
      in the puts were under some short covering.
                                         5400 PE            slight short buildup and may indicate some at this level and a negative
      Highest OI increase was seen for 5500 CE which saw short buildup and may indicate a resistance form of pivotal support for
      sentiment; for calls highest OI increase was seen for 5600 CE,
      the market;for puts highest OI increase was seen for 5100 PE. suggesting a possible target/resistance for the market.
                                                                            5574                5410.
      Immediate resistance on the basis of options for the Nifty stands at 5722 and support at 5355.
                          18.58 which decrease of –0.22% from the previous VIX 18.58. This period of non movement from the
      India VIX stood at 18.54 a slightmeans that there was no change in the daysyesterday. This may indicate some uncertainty
      VIX a possible volatile movement for the market.
      anddoes still suggest that a volatile movement is possible.

                           Most Active Futures in Terms of Contracts                                             Trade Stats for 6th June

   SCRIP (MAY)     FUTURE PRICE      SPOT PRICE        PREM TO         CHG IN PR%   CHG IN OI%     Product           No. of       Turnover     Put-Call
                                                        CASH                                                        Contracts      (Rs. Cr.)    Ratio

      SBIN            2276.7           2263.55           13.15            -1.28        6.71      Index Futures        368984       9467.06        -

  TATAMOTORS          1023.1           1021.15            1.95            -0.84        -0.30     Stock Futures        375893       9437.10        -

       LT             1729.75          1725.95            3.8             1.38         -2.05     Index Options       1833714      51047.12       0.93

    ICICIBANK         1051.45          1048.00            3.45            -0.24        -2.02     Stock Options        82468        2108.44       0.39

    RELIANCE          955.75            954.00            1.75            0.40         -1.79      F&O Total          2661059      72059.72       0.90

                                                         Derivative Option Strategy

                                                      Bull Call Spread on DCB Limited
                  Scrip: Development Credit Bank Ltd. | Lot Size: 4000 | Expiry Date: 30th June | CMP: Rs.59.45

Rationale: There is some positivity seen for DCB and the stock underlying may rally up to near 62.8 levels. Long buildup was seen
on futures side of the market and this supports the positive expectation for the stock. The strategy suggested is the Bull Call
Spread with an extra call sold out of the money to cover the costs.

                              is constructed by purchasing one 60 CE at Rs.2.25,
Construction: The strategy is constructed by purchasing one 60 CE at Rs.2.25, selling one 62.5 CE at Rs.1.15 and selling 65 CE at
selling the total cost Rs.1.15 and selling 65 is at Rs.0.7; the total cost to create
Rs.0.7; one 62.5 CE at to create the strategy CE Rs.0.4. The strategy initiates at 60 and breaks-even at 60.4 and maximizes profits
the strategy is Rs.0.4. The strategy cost incurred and breaks-even at 60.4 and
between 62.5 to 65 with Rs.2.1. Theinitiates at 60 in creating the strategy is the maximum downside loss the strategy incurs if un-
derlying stays below 60 on expiry. A65 with Rs.2.1. The cost incurredafter which losses occur.
maximizes profits between 62.5 to Breakeven is formed above 67.1 in creating
the strategy is the maximum downside loss the strategy incurs if underlying
stays below 60 on expiry. A Breakeven is formed above 67.1 after which losses
Cost and Initiation: The total premium cost and downside loss is Rs.1,600 (Rs.0.4*4000lots) and the maximum profit is Rs.8,400
(Rs.2.1*4000lots). The strategy may be entered at current levels and profit booked at a total premium of Rs.1-1.25 at an underly-
ing of 62.25.                                                                                                                       3
                                                                                                    June 13, 2011
                                                                                                    June 13, 2011

Hedge Equities Ltd
Hedge Equities Ltd

                        The rupee rupee ended firmly onagainst the weakertracking theweak fallmore thanas
                        The Indian rupee marginally44.70per dollar ondollar,itsthan noting thelocal ingains44.70.
                        Asian currenciestraded at 44.72 firm againstFriday,concernsof yesterday sharesstrong
                               Indian was ended at 44.75 on Wednesday ondollar Wednesday's the shares, pull
                                       rupeewere trading Friday, close the greenbackEuro and closethe euro.
                                             ended at 44.73 per dollar US byweakest level in morning a
                                              continued to trade supported onstrong of Euros local and and
                                                   at weak against the to           cues    weak gains of were
                        weekin asfor and overshadowedThe forfollowingsharedollarthe IndianThe of fall shares.
                        appetiteexporter importer and pullforbroadEuro pressurizedand limitedat 44.70/71 the
                        However,Wednesday, weighed bybackUSwas atfrom importersthe index from curren-
                        limitedon there in dollar selling. by robustlocal strong economic data Indian in US.
                        volatile euro was markets improved USof corporate indices versus major dollar
                        Asian & Euro riskier assets demand euro dollars $1.4623 inflows. weal localthe per
                        backchoppyrise was high currencies, and dollar. in the rupee ended rupee. the rupee
                                      Indian Asian demand             gains Indian dollar and the The index
                        cies rupeerupeethesix major of weak, greenback 73.790on banks' points at local close
                        The Indian majordomestic to Thursday's percentwas weakpoints. thecurrency Indian
               44.72 comparedagainst per dollar againstbecauseagainst the On Fridaymoved
                        ended Though ended
                        of the dollar against euro shares. The was of 44.73. % 73.854
                        dollar against Tuesday’s at 44.81up 0.01Asian currencies Intraday indices were do-
                        against six was steadyclose currencies rupee at 44.84 at Thursday. dollar as was
                        The and weak currencieswas 44.67/68. down 0.10 Inand sharedollar supply local
                                                      was the close
                        ing well so ofpointsband of 1.0% and.Thethe the euroThe one-month dollar/rupee
                        shares73.700companies' purchases also as market. rates in the fall against the
                        offsetrange there was44.7644.79-44.92. dollar/rupee extended itsnon-deliverable
                        rupee moved the
                        in the
                        versus   by oil indown-over range.
                                  ended 44.66 on Wednesday. in
                                                  two-way flow
                        futures rates on near a asas the Stock Exchange,gains againstGreek US dollar Ex-
                        forwardshovered the National 44.75 gave upprior to dollar sales from corporate,
                              rupee weakened to       low as euro against        dollar on and United was final-
                        The euro markets roseone-month high intraday the MCX-SX, as the deal Stock to-
                        Currency Reliancedata releasingwhich will the was dollarin aFridaydollar/rupee well.
                        Industrial speculators Asian ,betsas the limitedan the localinon to Indian rupee.NDF
                        including anticipation of one-month high dollar ECB. influencethe theas straight highAc-
                        ized and hoveredfirmboostedcurrencies againstup dollar disappointingmarket week of
                        The eurowere marginally higher ratesproppedU.S.the riseonunitspotthe day's asantici-
                                    output near a interest today hikehave the The for the
                                             Industries       against by
                        day .However,                                           firm       second investorsdata in
                                                                                                   US jobs       is
                        The latest level notaccording thethe5.from thesoft patch in Aprilworld'smoved in a nar-
                        44.5750 to rupee dollar in to could signal a today for Futures
                        pressurizing U.S.US rates expectdata Industrial output yesterday. Trading Commission
                        pated.The period, seen since May US dollar Commodity the banksbiggest economy
                        rate dollar/rupeefelldataand made an one month low because to be atpurchased the
                        the weak the jobs against non-deliverable forwards market
                        cording a Reuters, they that the                                            5.5% from
                        greenback yesterday currency. value of againstemerging from yesterdayto $22.98
                        rowpressurize the were trading lower the Somethe greenback the euro the green-
                        (CFTC) released on Friday. in local shares. dollar's net short position rose tracking
                        Asian currencies US because of mixed cues importers also bought and Asian
                        year band
                        and earlier. noting the fall The
                        back. Dollar/rupee dollar to fall, pressurized byof since yesterday waseconomic the
                        currencies. rise against Juneeuro. lackedwereto an overbillionsluggish earlier. day
                        the dollar's Market forward 7, from net shorts downeuro and abanks moderated by
                        India's industrial output probably rose 5.5 % in April from aone-week low againstdata
                         Analysts expects the                              rising
                                               participation Rupee luster $15.73 year earlier, sold first
                        billion in the week ended the premiums fell                today as week the forward
                        successivebanks futuresrupee greenback noting near-month dollar-rupee dollar up on
                         In the as interest The rises declinewould support may in Asian the median forecast
                        in the worlds largest economy.rose slowedtradedUSIndianattractand could contracts lo-
                        dollars on expectation the
                        of   the new year. rate market This againstmanufacturing rupee declining move sales
                                 currency boughtthe which most the the fall growth, currencies and on
                                                          , the in spot rupee dollar after forward earlier to
                        in the
                        44.50. currencyfrom foreign institutional investors as rates share indices rose.
                        the Reuters pollfutures market dollar/rupee futures local Stock Exchange were at
                        from inflowsStock.One-month the MCX-SX output will be crucial for Indian rupee The
                        cala share indices Exchange, ,the most traded near-month dollar-rupee contracts on
                        likely exporters.showed. Friday’s Industrial and near-month dollar-rupee contractsand
                        In National                                         the United on the National Stock
                        In the currency futures market , the most traded                                       on
                        rupee slid again against the thethe MCX-SXvolumeboth yesterday as the fall were at
                        the markets. Stock Exchange and Stock in a were choppy trade
                        Exchange, MCX-SX, and United dollar Exchange rose at 44.8475 as the greenback
                             National                    US MCX-SX and on the United Stock Exchange United
                        45.0025, 45.0075, 45.0050 respectively. Total day of was $8 billion. and on thein euro
                        the dollar edged Exchange,
                        The National Stockhigher on Tuesday after upbeat U.S. data suggested the world's
                        gained in the spot market. The dollarvolume atbanks billion . and pound sterling
                        Stock Exchange at to buy with the total rose against the euro
                        prompted banks 44.8500,the greenback. Some $7.01 also bought the greenback
 DOLLAR INDEX CHART     biggest economy will accelerate in 2011, helping it make smart gains against the
                        44.8675, 44.8800 and 44.8725 respectively, with the total volume at $8.01 billion
                        yesterday of oil companies and to buyimporters.
                        on behalf as traders preferred other the greenback on better-than-expected US
                        yen and the Australian dollar. The rupee also ended lower against the dollar.
                        economic data. Dollar strengthened yesterday as investor confidence in the US
                        The Indian rupee continued to hold in a tight range on Monday tracking mixed
                        economy improved after factory orders for November rose 0.70% as against an
                        cues, as positive sentiment due to firm domestic shares and Asian peers, was
                        expectation of a decline.
                        offset by broad gains in the dollar versus major currencies.

                        EUR/USD continued its northbound momentum yesterday as the annualized
                        EURO: difficult to get price estimateMonday in the first December from of 2011,
                        The euro fell against the accurate read on the euro yesterday. This can 1.9 per-
                        It was
                        Euro-Zone consumer an dollar on rose 2.2 percent in trading session be par-
                        reversing year-end gains Friday65.1700at 64.7900 about The Euro rose 1%. The euro
                        tially attributed euro ended the rate for June contract. euro zone debt. October
                        cent in November. Indeed, at market inflation was are still facing asThinned
                                                     on on persisting conditions June contract. since well as
                        The rupee against to the unusualended ofconcerns for wethe highest The euro fell for
                        trade and was led by the day. We on Friday, currency rose for the second for
                        the datastraight day ,against the dollar May 5. addedreading of of particular impor-
                               1% and holidays the most energy prices. Theconcerns is Greek debt rose day
                                       $ news increasing and note that on to volatility. Peripheral euro
                        rosethird to to 1.4635 forin Tokyo since London TheGerman unemployment crisis and
                        2008 due
                        The rupee against euro endedinflation pressures day(though fell 1.1% Centralnear %
                        diminished against euro ended2009 euro previous lead the Theiteurorose forThursday
                        againstdueagainst euro endedearly63.8075 forJune contract. beThedoesn’t on near sin-
                        zone debt expectations at of at65.5000offor June contract. The Euro traded thealter
                        The rupee Japanese yen that atat65.5600 for June hikes. Euro aeuro was really 0.5 a
                        tance the issuancesJune 117.the part zone rate contract. The catalyst down Bank
                        the first time since in about at 65.6100 for May contract. European on Friday one
                              rupee to the euro ended 48. the
                                                fact the                  the year could          euro traded    and
                        month at $1.4343 on thatdaydollaris going to receive its200signalpackage byfinance in out-
                                       on news thethethe European Central Bank which a European July to avoid
                                                      Greece on it , hurt at doubts down by 1.2%. industry July
                        traded hightrend) andfromthe the yenMonday on 115. thethatshowedof 2010hike minis-
                                                   againstat $1.4626 ended by data to lastisanother rate 2008likely
                                                           exaggerated rate. reading hit an Aprilthat the ECB
                        as investors expected
                        against to raising the benchmark Euro Zone CPIin
                        seven-weekdollarfall andthe initial interest gains Though it daysOctober are high
                        gle currency toagainst
                        closer the low while
                        the larger                                                  bailout
                        ters'inzone its borrowing costsgap governmentszone debtunexpected 0.6 %.
                        putbe reversed onceEuro. moreas betweeninterest in an aid, but losses their push it
                        the defaultofficials agreed to launch a second GreekEuro zone interest rates maythe 110
                        Euroraisethe ECB is wideningeconomy really picks up.the to bring down were limited
                        (thoughmeeting would offer to take more euroand bailoutlater-released core debts,
                                euro zone the likely
                                       and the                clarity on US struggle that would replace data).
                        that would boostpowerhouse activity Germany fell by
 EURO/INR DAILY CHART   billion euro $1.50 in Euro seen around picture once and and last level.
                        withGreek debt restructuringweeks.intothe psychologically IMF dragged the Euro south-
                        The demand for the coming came
                        towards the scheme put together by European Unionagainkey $1.40 year. The new plan
                        On short term developments may provide the catalyst needed for the single
                        the the headlines, the ECB announced it had successfully sterilized its cumulative
                        wards, many investors expect the Greece restructuring, the Europeanraised would on
                        In fact, as to gain a short term boostdebtits own Greekbut skepticism place.
                        The continuedbond purchases roll over an extra yearcorrection takes certainly get
                                     ECB 2014 would not                              of financial support again
                        would go up tosaid itand providingeuro to push higher, as bond holdings. Webeyond the
                        currency going possibility of Greek before a week; ,which was to German news
                        government to receive more through last larger                               Central Bank re-
                        original is is in athis issue when Euro arrestfinance among theaccording and Euro see up
                        The euro initiallyletter from German finance ministerEuros meetSchaeuble, could shotthe
                        Greece bailout. fell to $1.after flag confidence minister month, June 20.
                        Wednesday widely news gave the zone onbillion assault charges of IMF chief view
                                                               than rate sexual next investors
                        Thursday on Thisexpected tosome a $100 rise for Wolfgang on reinforcing theDomi-
                        some clarity
                        against the markets opened the year on conference.
                        mains surrounding risen made one monthstrong note as investor's confidence on
                        European EurodollarEuropean highs,three weeksbyon account of aid for
                        magazine. US pressure more than 4%
                        that euro zone interest rates willthe ECB newspastthan U.S. rates. the bad US non farm
                        niquecome underhas prompted speculation fasterchanges at the top of the multilateral
                        euro Strauss-Kahn and after rise much that              supported
                        global may affect discussionsimproved,indebted Zapatero said that the 2010interest
                        Greece economic
                        Spanish Prime ECB meetingsonLuistarget unchanged, zone states. increase in of Euro
                                            Minister Joes aid Rodriguez euro which indicates the pace deficit
                                                                      and European manufacturing activity accel-
                        employment2012 recovery on Thursday , where markets expect
                        lender and the inflation forecast for
                        ECB kept its change.
                        zone sterling, the euro EUR wastarget, and% at low versus the euro 89.76 pence
                        to beinterest rate hikes will be slower than be went Trichet gave signals that interest
                        rates. while under pressure, falling to a one-month88.99 pence that a ofBank of Eng-
                        European services better follow the to of starting to add down. new continue
                                         Chinese not than                    manufacturing
                        erated“somewhat”dideconomy seemssuitexpected. onto cool as it did not round of
                        Sterling came                            last up 0.1                  after the
                        Bailoutsessiononon of $1.6355 be carried widely after creditThe Moreover,Moody'sand
                        stress plans low hold approved by all 17manufacturing rating agencylastzone, re-
                        expansion possible in July. yetagainst as out “immediately.” services expanded at
                        and hike is in December,
                        land kept rates lenders will European national governments in was
                        rate a tests need to be at record lowsthe dollar expected. and eurothe euroMr. Zapa-up 0.3 %
                        further a it pace than what was lose its some of the the Spanish economy and
                        terofastestdollar that the UK couldexpected in December; north European data (due
                        the said indeximportant that China low confidence inrating.
                        peated the is slipped to is mounting in of 73.64 after disappointing jobs countries
                        US dollarwarning at Greeceone month has prized triple-ArichPMI composite remained
                        against funding for $1.4620.
                        which wouldthat Chinamost 9.1%announced
                        at the fact contribute recently and the expectations that US interest rates debt).
                        unemployment rate rising to to a new rescue. that it will buy Spanish public will re-
                        to 55.5.
                        main tightening of fiscal one monthstronger states such as Germany and France
                        The lower. Euro rose to a policy by high of $1.4659.
                        provide additional hurdles for the 17 member euro area. In turn, the short up-
                        swing in the EURUSD may be short-lived.

                                                                                                                        June 13, 2011

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