2012.06.26 23:31:58 Argentina's Bonds Rise, Peso Steady; Merval Stock Index Off 0.5%

   All dates are in GMT.         Wednesday, June 27, 2012                              Exp        Prev   GMT   0600  GER  May     Foreign trade price indices   0800  ITA  Jun     Business Confidence Survey                         Business Confidence Index       85.4       86.2   0800  GER  Jun     Brandenburg CPI                         MoM Pct Change (Current                         Period)                                    -0.2%                         YoY Pct Change (Current                         Period)                                    +2%   0800  GER  Jun     Hesse CPI                         MoM Pct Change (Current                         Period)                                    -0.2%                         YoY Pct Change (Current                         Period)                                    +1.9%   0830  UK   May     BBA main high street banking groups statistics                         BBA Net Mortgage Lending, GBP              +700M   1000  GER  Jun     Bavaria CPI                         MoM Pct Change (Current                         Period)                                    -0.2%                         YoY Pct Change (Current                         Period)                                    +2.3%   1000  UK   Jun     CBI Monthly Distributive Trades Survey                         Retail Sales Volume Index                  21                         Retail Sales Volume Index                         (Future Expected)                          25   1100  US   Jun 22  MBA Weekly Mortgage Applications Survey                         Market Composite Index                     941.5                         Market Composite Index Cur Chg             -0.8%                         Purchase Index (S.A.)                      188.1                         Purchase Index (S.A.) Cur Chg              -8.5%                         Refinance Index                            5385.8                         Refinance Index Cur Chg                    +1%   1200  GER  Jun     Provisional CPI                         CPI Monthly Preliminary         0%         -0.2%                         CPI Yearly Preliminary          +1.8%      +1.9%                         EU-Harmonized CPI (Mon)                    -0.3%                         EU-Harmonized CPI (Year)                   +2.1%   1230  US   May     Advance Report on Durable Goods                         Total Orders                    +0.4%      0%                         Orders, Ex-Defense                         +1.2%                         Orders, Ex-Transportation                  -0.6%   1230  CAN  Jun     Preliminary estimates of principal field crop areas   1230  US   Q1      State Quarterly Personal Income   1230  US   May     Chicago Fed Midwest Manufacturing Index                         Manufacturing Index (MoM)                  +2.4%                         Manufacturing Index (YoY)                  +12%                         Auto Output Index (MoM)                    +7.6%                         Auto Output Index (YoY)                    +28.2%                         Machinery Output Index (MoM)               +0.6%                         Machinery Output Index (YoY)               +11.5%                         Resource Output Index (MoM)                -0.1%                         Resource Output Index (YoY)                +1.4%                         Steel Output Index (MoM)                   +0.7%                         Steel Output Index (YoY)                   +10.7%   1400  US   May     Pending Home Sales Index                         Current                                    95.5                         MoM Pct Change (Current                         Period)                         +2.3%      -5.5%                         YoY Pct Change (Current                         Period)                                    +14.4%   1400  US   May     Metropolitan Area Employment & Unemployment   1430  US   Jun 22  EIA Weekly Petroleum Status Report                         Crude Oil Stocks                           387.3M                         Crude Oil Stocks (Net Change)   -0.5M      +2.86M                         Gasoline Stocks                            202.74M                         Gasoline Stocks (Net Change)    +0.8M      +0.94M                         Distillate Stocks                          121.13M                         Distillate Stocks (Net Change)  +0.9M      +1.16M                         Refinery Usage                  92.1%      91.9%                         Total Products Supplied                    18.6M                         Total Products Supplied (Net                         Change)                                    -0.81M   1730  US           Federal Reserve Bank of Chicago - Chicago Fed President                      Charles Evans interview   2350  JPN  May     Preliminary Retail Sales                         Overall Retail Sales (on year)             +5.8%                         Large-Scale Retailers' Sales                         (on year)                                  -0.5%   2350  JPN  Jun     Provisional Trade Statistics for 1st 10 days of Month   N/A   US           U.S. President - Obama meets Abu Dhabi crown prince at the                      White House   N/A   GER  Jun     North Rhine Westphalia CPI                         MoM Pct Change (Current                         Period)                                    -0.3%                         YoY Pct Change (Current                         Period)                                    +1.5%   N/A   GER  Jun     Saxony CPI                         MoM Pct Change (Current                         Period)                                    -0.2%                         YoY Pct Change (Current                         Period)                                    +1.9%   N/A   GER  Jun     Baden-Wuerttemberg CPI                         MoM Pct Change (Current                         Period)                                    -0.2%                         YoY Pct Change (Current                         Period)                                    +1.9%      Thursday, June 28, 2012                               Exp        Prev   GMT   0030  JPN  May     Detailed Import & Export Statistics   0600  UK   Jun     Nationwide House Price Index                         House Prices Monthly            +0.1%      +0.3%                         House Prices Yearly             -0.6%      -0.7%   0645  GER          Ifo Economic Forecast   0730  EU   May     EuroCOIN indicator of euro area economic activity                         Eurocoin                                   -0.13%   0800  GER  Jun     Labour market statistics (incl unemployment)                         Jobless Claims (Adjusted)       0          0                         Jobless Claims (Unadjusted)                2.86M                         Jobless Rate (Adjusted)         6.7        6.7                         Jobless Rate (Unadjusted)                  6.7   0800  ITA  May     PPI                         Producer Prices Monthly                    +0.3%                         Producer Prices Yearly                     +2.5%   0810  EU   Jun     Eurozone Retail PMI   0830  UK   Q2      Bank of England Credit Conditions Survey   0830  UK   Q1      Quarterly national accounts (GDP)                         GDP Qtr                         -0.3%      -0.3%                         GDP Yr                          -0.1%      0.5%   0830  UK   Q1      Business investment revised results                         QoQ 2nd Estimate                           +3.6%                         YoY 2nd Estimate                           +14.2%   0830  UK   Q1      Balance of Payments                         Current Account Balance, GBP    -9.1B      -8.5B   0900  EU   Jun     Business & Consumer Surveys - Business Climate Indicator &                      Economic Sentiment Indicator                         Business Climate Index          -86        -0.77                         Consumer Confidence             -19.6      -19.3                         Economic Sentiment              89.8       90.6                         Industrial Confidence           -12        -11.3                         Services Confidence                        -4.9   0900  ITA  Jun     Provisional CPI                         CPI Monthly Preliminary         0%         0%                         CPI Yearly Preliminary          +3.2%      +3.2%   0900  ITA  Jun     Cities CPI   1000  ITA  Apr     Large firms labour indicators   1115  UK           CBI & PwC Financial Services Survey press briefing   1230  CAN  Apr     Payroll employment, earnings & hours                         Y/Y                                        +2.1%   1230  US   Q1      3rd estimate GDP                         GDP                             +1.9%      +1.9%                         Chain-Weighted Price Index      +1.7%      +1.7%                         Corporate Profits                          +11.7%                         PCE Price Index                            +2.4%                         Purchase Price Index                       +2.4%                         Real Final Sales                           +1.7%                         Core PCE Price Index( Ex                         Food/Energy)                               +2.1%                         Personal Consumption                       +2.7%   1230  US   Jun 23  Unemployment Insurance Weekly Claims Report - Initial                      Claims                         Weekly Jobless Claims           385K       387K                         Weekly Jobless Claims Net                         Change                          -2K        -2K                         Cont Jobless Claims (prior                         week)                                      3299000                         Cont Jobless Claims Net Chg                         (prior week)                               0   1230  US   Q1      Revised Corporate Profits   1230  US           U.S. Weekly Export Sales                         Corn, In Metric Tons                       382K                         Soybeans, In Metric Tons                   608K                         Wheat, In Metric Tons                      842K   1345  US   Jun 24  Bloomberg Consumer Comfort Index 

(MORE TO FOLLOW) Dow Jones Newswires

June 26, 2012 17:36 ET (21:36 GMT)

2012.06.26 22:48:04 IMF Listing Of SDR Values-Jun 26

       Values of national currencies in terms of Special Drawing Rights.   Source: International Monetary Fund.      One SDR Equals:                           Jun 26     Jun 25      Jun 22      Jun 21      Jun 20   Euro                    1.2139    1.21092     1.20793     1.20107     1.20004   Japanese Yen           120.739    121.429     121.806     121.162     120.255   U.K. Pound Sterling   0.968373   0.972905    0.971223    0.968964     0.96918   U.S. Dollar            1.51434    1.51219     1.51462     1.52175     1.52453   Algerian Dinar         118.782    118.448     118.408     118.709     118.702   Argentine Peso              NA         NA          NA          NA          NA   Australian Dollar      1.50921    1.50752     1.50604      1.4972      1.4961   Bahrain Dinar         0.569392   0.568582    0.569499    0.572181    0.573224   Botswana Pula          11.8308    11.8325     11.7686     11.6968     11.6733   Brazilian Real         3.13742    3.10831     3.08422      3.0881     3.11614   Brunei Dollar          1.93988    1.93606     1.93508      1.9343     1.93417   Canadian Dollar        1.55448    1.55801       1.554     1.55995      1.5541   Chilean Peso           769.438     761.98     756.687     755.795     755.373   Chinese Yuan           9.57231     9.5616          NA     9.59315     9.60513   Colombian Peso         2730.92    2582.02     2689.95     2694.08     2703.26   Czech Koruna           31.5105    31.2555     31.1361     30.8459     30.5439   Danish Krone            9.0234    9.00131     8.98005     8.92754     8.92029   Hungarian Forint       347.874    347.758     346.773     342.531     345.214   Icelandic Krona        191.368    191.307     190.872     190.113     190.078   Indian Rupee           86.4237     85.484     86.3185     85.8575       85.16   Indonesian Rupiah      14340.8    14335.6       14348     14415.6     14426.6   Iranian Rial           18565.9    18539.5          NA     18656.7          NA   Israeli New Sheqel     5.96499     5.9187      5.9146     5.89678      5.8923   Kazakhstani Tenge       225.97    225.574     225.663     226.437     226.971   Korean Won             1757.85    1749.91     1741.97     1754.12     1765.71   Kuwaiti Dinar         0.424394   0.423792    0.423413    0.425405    0.425952   Libyan Dinar            1.9324     1.9324      1.9324      1.9324      1.9324   Malaysian Ringgit      4.83802    4.82465     4.83164     4.82321     4.81369   Mauritian Rupee        46.7968    46.6662     46.6729     46.8582     46.8272   Mexican Peso           20.9912    21.1014          NA          NA     20.9252   Nepalese Rupee         137.654    138.471      136.74     136.273     136.674   New Zealand Dollar     1.92371    1.91586      1.9226     1.90219     1.91476   Norwegian Krone        9.10365    9.07952     9.04323     9.00317     9.00755   Rial Omani            0.582265   0.581436          NA    0.585114     0.58618   Pakistani Rupee        143.051    142.886     142.969      143.68     143.439   Nuevo Sol                   NA    4.01941     4.01677     4.03416     4.02474   Philippine Peso        64.5369    64.2562     64.0139     64.1223     64.5045   Polish Zloty           5.16209    5.15732      5.1535     5.11567     5.10274   Qatar Riyal            5.51222    5.50436     5.51323     5.53918     5.54927   Russian Ruble          50.2356    50.1582     50.7686     50.0739     49.5724   Saudi Arabian Riyal    5.67879     5.6707     5.67982     5.70656     5.71696   Singapore Dollar       1.93988    1.93606     1.9351      1.9343      1.9342   South African Rand     12.8428    12.7959     12.6532     12.5424      12.512   Sri Lanka Rupee        201.321     200.92     201.235     201.566      201.97   Swedish Krona          10.6885    10.6655          NA     10.6138     10.6386   Swiss Franc            1.45513    1.45488     1.44874     1.44201     1.44281   Thai Baht              48.1865    48.2102      48.174     48.1529     47.9784   Trinidad And Tobago    9.68176     9.6826     9.70648     9.72886          NA   Tunisian Dinar         2.41614         NA          NA     2.40711     2.42232   U.A.E. Dirham          5.56143    5.55352     5.56245     5.58862     5.59882   Peso Uruguayo               NA    33.0444     32.9142      33.054     32.9695   Bolivar Fuerte         6.49549    6.48626     6.49667     6.52724     6.53915   Write Rodney Christian at csstat@dowjones.com    

(END) Dow Jones Newswires

June 26, 2012 16:48 ET (20:48 GMT)

2012.06.26 22:25:06 SBA Communications to Buy Cell Towers For $1.45 Billion

--Emerging-market currencies mixed; Mexico peso leads gainers

--Emerging-market debt slightly stronger

--Investor focus on coming EU summit

       By Erin McCarthy and Joshua Dawsey    

Emerging-market debt strengthened a tad while currencies traded their separate ways Tuesday as investors geared up for a critical two-day summit of European leaders later this week.

European Union heads of state will be meeting starting on Thursday, leaving many investors on hold or squaring up their positions two days ahead of the pivotal summit. While markets are looking for more clarity on unified European banking oversight and further measures to protect the currency union from further contagion, but analysts warn that expectations are low. In addition, on Tuesday, ratings agency Egan-Jones downgraded Germany's rating, reminding markets that Europe's biggest economic engine is highly exposed to troubled euro-zone countries.

"Disappointment is driving sentiment today," said Jose Wynne, research director at Barclays. "You don't see a lot of activity, as everyone is just waiting to hear from the Europeans on what they have in mind."

Emerging-market sovereign debt was largely steady, as its risk premium tightened three basis points to 387 basis points over Treasurys, according to the J.P. Morgan Emerging Markets Bond Index Global, or Embig. In price terms, its index was flat.

Argentina's debt, which often outpaces broader market moves, significantly outperformed the asset class. Its spread shed 41 basis points to 1087 basis points over Treasurys. On Tuesday, Argentina's federal government said Tuesday it will borrow $2.18 billion from the central bank's international reserves to pay creditors.

Among currencies, the Mexican peso was a top gainer, likely taking cues from gains in U.S. equities and after positive economic data. Mexico's economic activity rose 4.7% in April on the year, beating expectations.

"For this environment, that is very good," Mr. Wynne said. In addition, markets are increasingly certain Enrique Pena Nieto, the frontrunner in this weekend's elections, will become the next president, he said. The peso advanced 1.3% against the dollar, which traded at MXN13.7362, according to CQG.

Elsewhere in the region, the Brazilian real failed to eke out gains, sliding 0.5% against the dollar, which traded at BRL2.0725.

In Europe, the Turkish lira was a top gainer, advancing 0.8% against the U.S. currency, which bought TRY1.8077, according to CQG. The lira has benefited from lower oil prices in recent days, as Turkey is a net oil importer.

Hungary's currency advanced as well, after Hungary's central bank kept its key policy rate on hold Tuesday at 7%. The euro traded at HUF285.88 from HUF287.77 late Monday, according to CQG.

Write to Erin McCarthy at erin.mccarthy@dowjones.com

(END) Dow Jones Newswires

June 26, 2012 16:26 ET (20:26 GMT)

2012.06.26 17:44:47 *Spain Hasn't Made Decision To Hike VAT - Top Official

(MORE TO FOLLOW) Dow Jones Newswires

June 26, 2012 11:44 ET (15:44 GMT)

2012.06.26 17:20:19 *ECB's Weidmann: Creating Debt Union Would Delay Necessary Reforms

(MORE TO FOLLOW) Dow Jones Newswires

June 26, 2012 11:20 ET (15:20 GMT)

2012.06.26 14:55:00 *Redbook: US Retail Sales +1.9% Wk End Jun 23 Vs Yr Ago

(MORE TO FOLLOW) Dow Jones Newswires

June 26, 2012 08:55 ET (12:55 GMT)

2012.06.26 14:42:42 *UBS Weber: Europe Needs to Move Toward Union-Wide Agreement on Fiscal Spending

2012.06.26 14:42:42    *UBS Weber: Europe Needs to Move Toward Union-Wide Agreement on Fiscal Spending

2012.06.26 14:30:57 MARKET TALK: Treasurys Lower as Market Sentiment Improves

8:30 EDT - Treasurys are down slightly as stocks point higher after Monday's selloff and as this week's $99B of auctions loom. Action starts today with $35B of 2-year notes. However, the euro zone of course remains a big focus ahead of the EU summit, and headlines from the region continue to spark price swings. Then there's the coming reads on US home prices and consumer confidence later this morning. The 10-year note is 3/32 lower, yielding 1.619%. (min.zeng@dowjones.com)

(END) Dow Jones Newswires

June 26, 2012 08:30 ET (12:30 GMT)

2012.06.26 14:11:00 MARKET TALK: Inflows Seen Aiding Strong Exchange Rate in Peru

8:10 EDT - Foreign direct investment into Peru should help support a strong exchange rate there, says RBS. It remains upbeat about the country as economic growth remains "strong...despite external volatility" while President Humala "remains committed to responsible economic policy. Evidence that the Minas Conga project could finally start moving forward is also favorable and support expectations for foreign direct investment to remain an important driver of economic growth and dollar inflows that support the strong exchange rate." (robert.kozak@dowjones.com)

(END) Dow Jones Newswires

June 26, 2012 08:11 ET (12:11 GMT)

2012.06.26 11:21:10 *ECB Main Refi Operation Volume Up vs EUR167.253 Bln Last Week

(MORE TO FOLLOW) Dow Jones Newswires

June 26, 2012 05:21 ET (09:21 GMT)

2012.06.26 08:10:31 UPDATE: German Consumer Confidence To Rise in July - GfK

--German consumer sentiment improves surprisingly

--Outlook still negative, euro-zone debt crisis seen hitting German consumers in future

--German Ifo business sentiment, ZEW economic expectations already deteriorated

(Adds details, background throughout)

By Margit Feher

German consumer sentiment is set to improve in July from an already elevated level, suggesting household spending will continue to spur growth in Europe's largest economy, data from German market research group GfK Tuesday showed.

The increase--which comes on the back of rising employment and wages in Germany's surprisingly robust labor market--defied forecasts for a slight deterioration.

GfK's forward-looking consumer climate index for July rose to 5.8 points, up from 5.7 points in June. Economists polled by Dow Jones Newswires had expected a fall to 5.6 points.

GfK warned the longer-term outlook isn't too rosy, though. Germany cannot escape the negative impact of external risks such as the raging euro-zone debt crisis and the region's economic downturn, it said.

"Growing uncertainty due to the escalating euro[-zone debt] crisis, intense debate of a possible Greek exit from the single currency, and the crisis in the Spanish banking sector could in time also have a greater impact on German consumers," GfK said.

If confidence drops, spending will fall with it, the polling firm said.

German business sentiment has already worsened significantly. The closely-watched Ifo index fell to 105.3 points in June from 106.9 points in May, as manufacturers were hit by a wave of uncertainty over the euro zone's prospects.

The ZEW institute last week reported that economic expectations among financial market analysts and investors suffered the biggest drop in almost 14 years.

"Evidently, there's growing concern that Germany could also be drawn into the escalating downward trend," GfK said.

While GfK's overall consumer climate index refers to the following month, its sub-indexes--economic expectations, income expectations and buying propensity--refer to the current month.

Following three months of steady increases, German consumers' expectations for economic developments worsened sharply in June to a level last seen in December last year, when the German economy was shrinking.

The economic expectations index dived to 3.0 points in June from 19.6 points in May.

Germans regard the external risks as being a threat to the economy in general, rather than to their personal financial conditions, GfK said. The income expectations sub-index rose sharply in June, to 40.1 points from 32.0 points in May.

German consumers also expect their income to grow thanks to rising employment, recent wage agreements that will ensure salary increases, and abating inflation pressures.

Supported by strong income expectations, the "propensity to buy" index rose slightly, to 32.7 points in June from an already high level of 32.0 points in May. As consumers continue to distrust financial markets and interest rates are at historic lows, they tend to prefer putting their money into big-ticket purchases, GfK said. Generally, real estate and consumer durables qualify as big-ticket items.

GfK maintained the forecast it made at the start of the year that German private consumption will rise by about 1% this year in inflation-adjusted terms.

The German central bank, the Bundesbank, expects the economy as a whole to grow 1.0% this year.

Write to Margit Feher at margit.feher@dowjones.com

(END) Dow Jones Newswires

June 26, 2012 02:10 ET (06:10 GMT)

2012.06.26 04:23:07 MARKET TALK: USD/MYR Tad Down; To Keep Testing 3.2000 Cap - Dealer

0223 GMT [Dow Jones] The USD/MYR is slightly lower at 3.1925, from 3.1950 late Monday in Asia, but dealers say risk aversion remains high in the market ahead of the EU summit this week; the pair earlier hit a high of 3.1960 and is facing heavy resistance at 3.2000 on the back of selling activity from foreign banks, says a local dealer. "There're plenty of sellers for pure profit-taking in the market met by a good amount of corporate demand buying for USD month-end settlement," says another dealer; he tips the pair to continue testing resistance at 3.2000 in the near term. (jason.ng@dowjones.com)

   Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com       

(END) Dow Jones Newswires

June 25, 2012 22:23 ET (02:23 GMT)

2012.06.26 02:06:52 Europe Stalwarts Delors, Schmidt Push for Eurozone Debt Agency - FT

   (From THE WALL STREET JOURNAL)      By Simon Nixon 

[Financial Analysis and Commentary]

We have done all we can, now it's your turn. That was essentially the message from the world's central banks to Western governments, as communicated by the latest annual report of the Bank for International Settlements.

Since the global financial crisis began, central banks have massively expanded their balance sheets, helping avert a second Great Depression. But the BIS now fears that ultraloose monetary policy is reaching the limits of its effectiveness and may now be doing more harm than good.

The BIS is clearly right. Easy monetary policy can act only as a bridge, providing governments and banks time to address underlying solvency problems. But for many Western countries, actions taken over the past five years have proved a bridge to nowhere: Outside the worst-hit crisis countries, governments have been slow to tackle their long-term fiscal problems, including unaffordable long-term health and pension commitments.

Governments have also been slow to introduce the structural overhauls needed to free up product and labor markets, enabling economies to rebalance. Meanwhile, too many banks have been slow to recognize bad debts and recapitalize, leaving them unable to supply credit.

The BIS fears central-bank accommodation is partly to blame for the lack of action as it has taken the pressure off governments to reform. But despite new pressure in the U.S., euro zone and U.K. for another round of monetary easing, it also fears that further expansion of central-bank balance sheets is creating new risks for the global economy by keeping asset prices artificially high and insolvent businesses afloat. There is also growing evidence of new imbalances in emerging markets.

Governments should take heed. Most advanced countries need to run a primary budget surplus -- before interest costs -- of two percentage points of GDP for 20 years to bring debt-to-GDP ratios back to precrisis levels, the BIS estimates. Most are nowhere close. As the BIS says: "The question is not whether governments must adjust, but how?"

(END) Dow Jones Newswires

June 25, 2012 20:21 ET (00:21 GMT)

2012.06.26 02:04:11 USD/CHF intraday: the upside prevails.

USD/CHF intraday: the upside prevails.

Update on supports and resistances.
Pivot: 0.9585

Our preference: Long positions above 0.9585 with targets @ 0.9625 & 0.965 in extension.

Alternative scenario: Below 0.9585 look for further downside with 0.954 & 0.95 as targets.

Comment: the pair stands above its new support and remains on the upside.

Key levels
0.9675
0.965
0.9625
0.96032 last
0.9585
0.954
0.95
Trading Central recommends MT5 to publish FX charts
Copyright Trading Central 1999-2011

Time	MA20	MA50	MA20_50	MACD_SL	MACD_0	Bollinger	RSI70	RSI30	Volume
25.06.2012 22:45	Up

2012.06.26 01:55:04 Moody's Downgrades 28 Spanish Banks

Moody's Investors Service lowered its long-term ratings on 28 Spanish banks by one to four notches and lowered two issuer ratings, pointing to the reduced creditworthiness of Spain and expectations that the banks' exposure to commercial real estate will likely cause higher losses.

Earlier this month, the ratings firm lowered Spain's sovereign-debt rating by three notches to Baa3, placing it on the brink of junk territory. Moody's had also said it will keep Spain on review for a possible further downgrade.

The downgrades reflect Moody's view that the ability of the Spanish government to provide future support to Spanish banks has declined. Additionally, the ratings firm noted the required extended period of fiscal consolidation is likely to maintain negative pressure on banks' balance sheets. Many banks don't have sufficient earnings and capital to withstand such potential stresses, Moody's added.

Among the downgrades, Banco Santander (SAN, SAN.MC) was lowered two notches to Baa2, Banco Bilbao Vizcaya Argentaria (BBVA, BBVA.MC) was lowered three notches to Baa3, Caja Laboral was downgraded one notch to Baa3, Banca March SA and Caja Rural de Navarra S.C.C. were lowered two notches to Baa3

CaixaBank (CABK.MC) and Instituto de Credito Oficial were lowered three notches to Baa3. Bankinter SA (BKT.MC) and Confederacion Espanola de Cajas de Ahorro were lowered two notches to Ba1, placing them in junk territory. Banco Cooperativo Espanol SA was lowered three notches to Ba1, also placing it junk territory. Banco Popular Espanol SA (POP.MC), Unicaja Banco SA and Bankoa SA were lowered four notches to Ba1, placing them junk territory. Banco Sabadell SA and Kutxabank SA were lowered three notches to Ba1. Caja Rural de Granada S.C.C. was lowered two notches to Ba2. Liberbank SA was lowered one notch to Ba2. Cajamar Caja Rural S.C.C. was lowered one notch to Ba3. Ibercaja Banco SA was lowered four notches to Ba2. Ahorro Corporacion Financiera S.V. SA was lowered two notches to Ba3. Bankia (BKIA.MC) was lowered two notches to Baa3. Banco CEISS was lowered four notches to B1. Catalunya Banc SA and NCG Banco SA were lowered three notches to B1. Dexia Sabadell SA was lowered two notches to B2. Banco de Valencia SA (BVA.MC) was lowered four notches to B3.

Spanish bank stocks tumbled Monday on speculation about the downgrades. Earlier Monday, Spain formally requested European Union aid to help finance the clean-up of its ailing banking industry, a move that Madrid hopes will help shore up banks that have been hollowed out by a five-year property slump which left them dangerously exposed to hundreds of billions worth of loans to builders and developers.

Spanish banks have already set aside about 100 billion euros ($125 billion) worth of provisions to cover property-related losses since 2008. They also need to add more than EUR80 billion to meet new and stricter provisioning and capital requirements.

The two largest and healthiest Spanish banks, Banco Santander and Banco Bilbao Vizcaya Argentaria, have held ratings from Moody's that are one notch above the country's sovereign-debt rating, thanks to their vast and highly profitable businesses outside Spain. Many of the country's smaller, domestically focused banks are already at junk status at Moody's and its rival ratings firms.

Among the three major ratings firms, Moody's rates Spain the lowest, citing the delicate state of the banking sector. The government had long resisted the idea of a bailout for its banks, wary of the economic and political stigma that could bring. As the aid will be channelled through the Spanish government, investors have voiced concerns over the impact it will have on the ailing finances of the Spanish government.

Fitch cut its rating on Spain earlier in June to triple-B from single-A, which is one notch above the Moody's rating. S&P downgraded Spain to triple-B-plus from single-A on April 26. That is one notch above Fitch's rating and two above the rating by Moody's.

Moody's already cut 16 Spanish banks by one to three notches on May 17.

-Christopher Bjork and David Roman contributed to this article.

-Write to Nathalie Tadena at nathalie.tadena@dowjones.com

(END) Dow Jones Newswires

June 25, 2012 12:45 ET (16:45 GMT)

2012.06.26 01:27:00 MARKET TALK: AUD/USD Eyed In Tight Band;May Test Parity-Arab Bank

2327 GMT [Dow Jones] The AUD/USD is likely to trade in a relatively thin band Tuesday, Arab Bank treasury dealer David Scutt says in a note; he pegs support at 0.9965 and resistance at 1.0045. With the pair currently at 1.0005 another venture below parity "looks (to be) on the cards," he says, particularly if major Asian equity indices fall heavily in early trading. Investors are jittery as markets now appear to be preparing for failure at this week's European Union summit, with German Chancellor Angela Merkel again dismissing the notion of shared debt liability across the euro-zone. (rachel.pannett@wsj.com)

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(END) Dow Jones Newswires

June 25, 2012 19:27 ET (23:27 GMT)

2012.06.25 21:05:33 Canada International Reserves Down $473M in Week Ended June 23

        By Satish Sarangarajan    

Canada's official international reserves fell $473 million in the week ended June 23, the Bank of Canada reported on its website.

At June 23, the official international reserves totaled $65.910 billion, compared with $66.383 billion on June 15.

The reserves included:

-U.S. dollars, $34.657 billion;

-other foreign currencies, $18.336 billion;

-gold, $171 million;

-special drawing rights, $8.606 billion;

-reserve position in the International Monetary Fund, $4.140 billion.

All reserve figures are reported in U.S. funds.

Write to Satish Sarangarajan at satish.sarangarajan@dowjones.com

(END) Dow Jones Newswires

June 25, 2012 15:05 ET (19:05 GMT)

2012.06.25 20:45:06 Cyprus Requests Aid from European Bailout Fund

--Problematic if ESM borrows from ECB

--Bond buys viewed more critically now

--Central bank bond buys haven't solved the crisis

--Says euro zone in a 'critical condition'

(Adds new information, in the first, third, sixth and seventh paragraphs.)

      By Christopher Lawton, Todd Buell and Christian Grimm    

HAMBURG--The head of Germany's central bank said Monday that the euro zone's permanent stability fund, the European Stability Mechanism, can't turn to the European Central Bank for funding to bail out troubled states, likening this to the direct financing of states.

"In my view it is problematic if the ESM were to have access to financing via the central bank. I see that as the monetary financing of public budgets," Jens Weidmann said, speaking in a public interview with Germany's Spiegel magazine. The ECB is prohibited from financing governments directly, but is able to buy government bonds on the secondary market. Its program to do this has been in existence since May 2010, but has been dormant now for the last 15 weeks.

He said that the bond-buying program is now viewed "much more critically" than at the beginning, and that the ECB's rate-setting council sees that "the bond buys haven't addressed the causes of [the crisis]."

Some European leaders recently have called for the ECB to take a more-active role in fighting the crisis, by re-starting its government bond-buying program or lowering interest rates. While the central bank may cut interest rates at its next meeting, scheduled for July 5, analysts said they believe it is less likely that the ECB will re-start the bond-buying program, which would lower borrowing costs for wobbly euro-zone states.

Earlier Monday, Mr. Weidmann's colleague on the ECB's Governing Council, Ewald Nowotny, told an Austrian newspaper that the ECB doesn't want to continue buying government bonds.

Mr. Weidmann also said that the Bundesbank hasn't implemented some of the changes to the ECB's collateral standards, but wasn't more specific.

Last week, the ECB disclosed it would widen the range of collateral it would accept in exchange for loans. The move was viewed largely as an effort to help Spain's ailing banking sector. The Bundesbank at the time, however, said it took a "critical stance on the new rules." The German central bank has repeatedly criticized the ECB for its continued widening of collateral rules as the crisis has deepened.

"The European Monetary Union is in a critical condition," said Mr. Weidmann. "Central banks have their limits," he added.

He was also skeptical about the idea of an EU banking union as a quick fix for the region's fiscal and financial problems.

"Such a project has far-reaching consequences," he said. "The idea that this could be implemented overnight is absurd," Mr. Weidmann said.

A common deposit insurance in Europe, an idea backed by ECB President Mario Draghi, raised difficulties such as the question of liability and monitoring, which hadn't been sufficiently discussed, Mr. Weidmann said.

However, the idea is strongly opposed in many circles in Germany, with banking associations critical that such a move is akin to a "transfer union," whereby German funds are transferred to the euro zone's allegedly more fiscally reckless south.

Write to Todd Buell at todd.buell@dowjones.com and Christopher Lawton at christopher.lawton@wsj.com.

(END) Dow Jones Newswires

June 25, 2012 14:46 ET (18:46 GMT)

2012.06.25 20:25:03 U.S. 2035 Oil Use Seen Below 2005 Peak

-- U.S. oil demand seen near 20 million barrels a day in 2035

-- Domestic crude oil output expected to rise 0.4% annually through 2035

-- Net import share of U.S. oil demand to drop

NEW YORK--U.S. oil demand will grow by a modest 0.2% a year through 2035, capped by increased energy efficiency and rising prices, and won't top the 2005 peak, according to government projections released Monday.

The Energy Information Administration's forecast is based on an extended economic recovery, with real U.S. gross domestic product growth of 2.5% a year between 2010 and 2035, moderate population growth, improved technologies brought on by stricter federal and state regulations and higher energy prices.

The price of low sulfur light crude is expected to rise by 2.4% a year between 2010 and 2035, to a record high just under $145 a barrel, in 2010 dollars.

Oil demand is expected to top out at 19.99 million barrels a day in 2035, up 770,000 barrels a day from 2010, but well below the 2005 peak of 20.8 million barrels a day. Biofuel use, much of it domestically produced, will decrease oil demand by the equivalents of 1.2 million barrels a day of crude oil between 2010 and 2035, the EIA said.

Gasoline demand, dropping 0.4% per year, is expected to average just over 8 million barrels a day in 2035, the lowest level since 1998, based on existing fuel economy standards. Proposed fuel economy standards for 2017 to 2025-model year light duty vehicles could further reduce demand for the most widely used petroleum product in the world's biggest oil consumer, the EIA said.

U.S. oil output, with production from shale oil fields outpacing declines in Alaska, will peak at 6.7 million barrels a day in 2020, a rise of 1.2 million barrels a day from 2010, and the most since 1993. Helped by ongoing development in the U.S. Gulf, crude oil output in 2035 will be near 6 million barrels a day, or an annual growth rate of 0.4% since 2010.

Rising domestic supply will trim U.S. net crude oil imports by 0.8% a year through 2035, when they will average 7.5 million barrels a day. Net crude oil and petroleum products imports are projected to drop by 1.2% a year through 2035, reducing the share of petroleum demand met by imports to 36.2% from nearly 50% in 2010. Expenditures on imported crude oil and petroleum products are expected to rise by 1.9% through 2035.

U.S. oil reserves are expected to rise by 1.1% a year to 2035.

Write to David Bird at david.bird@dowjones.com

(END) Dow Jones Newswires

June 25, 2012 13:25 ET (17:25 GMT)

2012.06.25 11:34:35 *Germany Sells EUR2.045B 12-Month Bubills

(MORE TO FOLLOW) Dow Jones Newswires

June 25, 2012 05:34 ET (09:34 GMT)