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Argentina Stocks Down On China Slide; Bonds Little Changed By Drew Benson Of DOW JONES NEWSWIRES BUENOS AIRES (Dow Jones)--Argentine stocks slid Monday, following a mild downturn in neighboring Brazil triggered by an 8% drop on China's Shanghai stock exchange. Meanwhile, locally traded bonds were little changed, while the peso continued to edge stronger against the dollar despite central bank intervention, closing at ARS3.025/dollar from ARS3.075 Friday. The stock exchange's benchmark Merval Index ended0.38% lower at 2,240.65 points, retreating slightly on profit-taking after hitting a record level on Friday. The broader General Index ended 0.28% lower at 119,665.79 points. Volume declined to 87.9 million pesos, with ARS74 million of that in local shares. Trading continued to be selective, with power transporter Transener (TRAN.BA) rising 3.14% to ARS1.97, while banking sector shares lost ground. Among these, Banco Macro (BMA) ended 2.29% lower at ARS10.65, while Grupo Financiero Galicia (GGAL) slid 1.22% to ARS3.23. In the local debt market, the Discount bond in pesos ended 0.03% higher at ARS152.1 in heavy trading, while the Par in pesos slid 0.09% to ARS58.30.

Monday, 4 June 2007

Jun 4 2007, 20:46 GMT

New York Money Market Rate Indications

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New York Money Market Rate Indications Bankers acceptances at 4:30 p.m. New York time.
1M 5.29
2M 5.30
3M 5.31
6M 5.34
9M 5.38
1Y 5.39
Federal funds: days high 5.28; low 5.18; latest bid 5.25; offered 5.31; prime lending rate at major banks 8.25; broker call loan rate 7.00

Dealer-placed commercial paper
30 days 5.25
60 days 5.24
90 days 5.22

Treasury bills
30 days 4.69-68 dn .035
90 days 4.64-63 dn .010
180 days 4.76-75 dn .020

Moody's yield figures
AAA corps 5.62

Jun 4 2007, 20:41 GMT

Nybot Equity & Currency Closing Estimated Volumes - Jun 4

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Nybot Equity & Currency Closing Estimated Volumes - Jun 4 Date: 6/4/2007
Floor Total
Futures Options

EQUITY
CONTINUOUS COMMODITY INDEX 2,360 0
REUTERS JEFFERIES CRB INDEX 0 0
REVISED COMPOSITE 0 0
RUSSELL 1000 823 514
RUSSELL 1000 MINI 0 0
RUSSELL 1000 MINI 0 0
RUSSELL 1000 GROWTH INDEX 0 0
RUSSELL 1000 VALUE INDEX 0 0
RUSSELL 2000 2 77
RUSSELL 2000 GROWTH INDEX 0 0
RUSSELL 2000 VALUE INDEX 0 0
RUSSELL 3000 0 0
EQUITY TOTAL 3,185 591
CURRENCY
USDX 5,229 13
Euro Currency Index 0 0
US$-CANADIAN 7 0
US$-SWISS FRANC 76 0
US$-STERLING 29 0
US$-YEN 0 0
US$-SWEDISH KRONA 34 0
US$-NORWEGIAN KRONE 128 0
US$-AUSTRALIAN 16 0
US$-NEW ZEALAND 582 0
US$-RAND 4 0
US$-HUNGARIAN FORINT 38 0
US$-CZECH KORUNA 8 0
POUND-SWISS 19 0
POUND-YEN 59 0
POUND- AUSTRALIAN $ 0 0
POUND- NEW ZEALAND $ 0 0
POUND- CANADIAN $ 0 0
POUND- NORWEGIAN KRONE 0 0
POUND- S. AFRICAN RAND 0 0
POUND- SWEDISH KRONA 0 0
AUSTRALIAN-CANADIAN $ 33 0
CANADIAN $-JAPANESE YEN 0 0
Small US$-YEN 59 0
Small US$-CANADIAN 7 0
Small US$-SWISS FRANC 4 0
Small POUND-US$ 56 0
EURO 163 0
EURO-US$ 44 0
EURO-AUSTRALIAN $ 5 0
EURO-CAN 73 0
EURO-STERLING 225 0
EURO-YEN 434 400
EURO-KRONA 46 0
EURO-SWISS 533 0
EURO-NORWEGIAN KRONE 69 0
EURO-HUNGARIAN FORINT 2 0
EURO-CZECH KORUNA 14 0
EURO- S. AFRICAN RAND 0 0
SWISS-YEN 37 0
AUSRALIAN$-YEN 39 0
AUSTRALIAN-NEW ZEALAND 437 0
NORWEGIAN KRONE-SWEDISH KRONA 51 0
NEW ZEALAND $- YEN 0 0
NORWEGIAN KRONE- YEN 0 0
SMALL AUSTRALIAN$-US$ 4 0
SMALL NEW ZEALAND $-US$ 2 0
Small POUND-YEN 4 0
SWEDISH KRONA- YEN 0 0
BRAZILIAN REAL - US$ 0 0
COLOMBIAN PESO - US$ 10 0
CURRENCY TOTAL 8,580 413

Jun 4 2007, 20:30 GMT

ECOFIN: Juncker: No Medium-Term Risks To Price Stability -2

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ECOFIN: Juncker: No Medium-Term Risks To Price Stability -2 ECB President Jean-Claude Trichet attended the meeting of Euro Group finance ministers, but didn't appear at the press conference. Juncker said the finance ministers agreed that with the euro-zone economy experiencing its best period of growth since 2000 and tax revenues rising, governments should attempt to reduce their budget deficits further. He added that the Euro Group would propose to a wider meeting of finance ministers from the European Union Tuesday - known as Ecofin - that excessive deficit procedures against Germany and Greece should be concluded. "The improvement in the fiscal situation has been impressive," European Commissioner for Economic and Monetary Affairs Joaquin Almunia said of Germany. "Now the question is whether they can continue the consolidation." Almunia, who was speaking alongside Juncker at the press conference, was less effusive about Greece's progress, urging the government to do more to bring down its budget deficit. "In the case of Greece the discussion was not so easy," Almunia said. "The correction was not as large as in Germany." Almunia and Juncker said the Euro Group will discuss the new French government's budget plans at their next meeting in July. Recently elected President Nicolas Sarkozy has proposed some cuts to income taxes that are expected to reduce government tax revenues. Juncker said he had no doubt France would abide by the European Union's budget rules, while Almunia said he expected the new government to continue to reduce the public sector debt. "I assume ... France is standing by its commitment to reduce its debt," Almunia said. He added that Italy's finance minister had assured the Euro Group that his government would speed up its fiscal consolidation. Juncker said the finance ministers had not discussed the euro's exchange rate. The currency is at an all time high against the Japanese yen. It has weakened against the U.S. dollar in recent weeks, but remains strong by historic standards. Juncker also said the Euro Group had agreed to back the entry of Malta and Cyprus into the euro zone. Formal approval must be given by the wider Ecofin and E.U. heads of government, but the Euro Group's backing is a key step towards the two Mediterranean islands becoming members of the currency area in January 2008. "The discussion has been very easy," Almunia said.

Jun 4 2007, 20:09 GMT

ECOFIN: Juncker: No Medium-Term Risks To Price Stability

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ECOFIN: Juncker: No Medium-Term Risks To Price Stability LUXEMBOURG -(Dow Jones)- There are no short- or medium-term risks to price stability in the euro zone, the head of the currency area's informal grouping of finance ministers said Monday. Speaking during a press conference following the conclusion of a meeting of the 13 finance ministers that are members of the Euro Group, Luxembourg Prime Minister and Finance Minister Jean-Claude Juncker also said growth prospects are favorable in the medium. "There are no short or medium term risks to price stability," Juncker said. "We feel that growth prospects in the medium term are favorable." Juncker's view of the inflation outlook isn't shared by the European Central Bank, which has warned that risks to the inflation outlook are on the upside. His comments likely serve as a hint to the ECB that finance ministers don't see the need for interest rates to rise much further. The ECB is expected to raise its key refinancing rate for the eighth time Wednesday, and is expected to hike again before the end of the year.

Jun 4 2007, 12:35 GMT

ECB Foreign Exchange Reference Rates - Jun 4

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ECB Foreign Exchange Reference Rates - Jun 4
LONDON (Dow Jones)--Following are European Central Bank foreign exchange reference rates. All currencies are quoted against the euro.

US Dollar USD 1.3482
Japanese yen JPY 164.34
Bulgarian lev BGN 1.9558
Cyprus pound CYP 0.5832
Czech koruna CZK 28.323
Danish krone DKK 7.4491
Estonian kroon EEK 15.6466
British pound GBP 0.67795
Hungarian forint HUF 249.8
Lithuanian litas LTL 3.4528
Latvian lats LVL 0.6962
Maltese lira MTL 0.4293
Polish zloty PLN 3.7957
Romanian leu RON 3.2595
Swedish krona SEK 9.3243
Slovak koruna SKK 33.845
Swiss franc CHF 1.6504
Icelandic krona ISK 84.25
Norwegian krone NOK 8.1085
Croatian kuna HRK 7.3472
Russian ruble RUB 34.869
New Turkish lira TRY 1.767
Australian dollar AUD 1.6177
Canadian dollar CAD 1.4252
Chinese yuan CNY 10.3153
Hong Kong dollar HKD 10.5223
Indonesian rupiah IDR 11830.46
South Korean won KRW 1251.06
Malaysian ringgit MYR 4.5778
New Zealand dollar NZD 1.8071
Phillipines peso PHP 61.491
Singapore dollar SGD 2.0618
Thai baht THB 44.345
South African rand ZAR 9.608

The reference rates are based on the regular daily procedure between central banks within and outside the European System of Central Banks, which normally takes place at 1415 CET (1215 GMT)

Jun 4 2007, 12:15 GMT

IMF sees Swiss economy heading for gentle slowdown

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LONDON (Thomson Financial) - The Swiss economy is seen heading for a gentle slowdown, with GDP growth of about 2.0 pct in 2007 from 2.7 pct in 2006, according to an IMF report.
The slowdown and the risks to this benign picture are largely due to external factors, the organisation said.
"While the outlook is favourable, the authorities need to remain vigilant to global economic and political developments that could affect the economy, including through oil prices, and to (mostly external) risks that could impact on Switzerlands large financial sector."
Inflation too is predicted to ease, from 1 pct last year to a little under that in 2007. The alpine nation is seen benefiting from among others, the opening of the labour market to EU workers, improved productivity, lower oil prices, higher domestic competition and rises in interest rates.
The IMF praised the Swiss authorities for their prudent economic management and sound policy frameworks, but added that the current favourable state of affairs should be used to strengthen potential economic growth further and to address long-term structural and fiscal issues, given population ageing.
Additionally, the IMF said monetary policy will need to remain flexible to respond appropriately to inflation signals. IMF directors also recommended a removal of the regulated link between interest rates and housing rents.
Carry trades which use the Swiss franc as a funding currency also need to be closely monitored, the IMF said.
"Carry-trades could be temporarily weakening the franc to a level below its equilibrium, and the present independent floating exchange rate regime is best to handle these uncertainties," the IMF said.
Countries in Eastern Europe, where the Swiss franc -- by virtue of its low volatility and the low Swiss interest rate -- is the currency of choice for loans -- are contributing to rapid credit expansion.
Developments in carry-trades could also imply important spillover risks for these countries, it added.

Jun 4 2007, 12:11 GMT

German construction trade union calls for strike vote next week

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FRANKFURT (Thomson Financial) - The construction industry trade union IG Bau said it will call for a strike vote next week after employer representatives rejected a pay rise deal struck with the help of an arbitrator.
The employer groups in the regions of Lower Saxony and Schleswig-Holstein rejected the deal, which requires agreement from all regions to be effective.
Last month, IG Bau and employer representatives -- through the help of a labour arbitrator -- reached an agreement to increase wages in three stages over a 24-month period from June 1, with a 3.5 pct increase in the first stage.

Jun 4 2007, 11:33 GMT

Shadow MPC narrowly votes to keep BoE repo rate on hold at 5.50 pct

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LONDON (Thomson Financial) - A shadow monetary policy committee has narrowly voted for the Bank of England to keep interest rates on hold at their six-year high of 5.50 pct when it meets later this week.
However the group, made up of economists from academia and the financial sector, were fairly divided in their views for what immediate BoE policy should be, with one member calling for a 50 basis point rise, three for a quarter point rise and the remaining five to leave rates unchanged.
The most hawkish comments came from Roger Bootle, economic adviser to Deloitte, who said the risk that inflation could get out of control is increasing.
"No-one should be fooled by the fall in inflation that will happen over the next few months; the issue is what will happen to inflation next year and beyond," he said.
Bootle argued that the MPC needs to take rates to a level which will have a real impact on borrowers and lenders, and this would best be done by shocking them with a 50 basis point rise.
"The stakes are too high to be pussy footing. It is time to take bold action," he concluded.
Three other members also believed rates should be raised, though only by a quarter point. These were Tim Congdon from the London School of Economics, Andrew Lilico from Europe Economics and David B Smith from the University of Derby.
Congdon and Lilco's main concerns were the rate of growth in the UK's broad money supply, while Smith cited the strength of the rate of growth in the UK economy, once the effect of the oil market is excluded.
Of the five remaining members who voted to keep rates on hold, two of them - Lloyds TSB economist Trevor Williams and Peter Spencer from the University of York - said they felt rates would probably need to be raised at some point in the coming months. This meant there was an overall bias on the committee for rates to rise in the near-future.
Finally three members - Peter Warburton, from Economic Perspectives, Patrick Minford and Kent Matthews, both from Cardiff Business School - voted for rates to stay on hold with a neutral bias going forward.
The real MPC is also expected to keep its key repo rate unchanged. Only 3 of the 32 economists polled by Thomson Financial News expect the MPC to lift borrowing costs a quarter point for the second month running.

Jun 4 2007, 11:32 GMT

Forex - Canadian dollar finds added support from strong recent US data

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LONDON (Thomson Financial) - The Canadian dollar stayed well bid amid expectations that the Canadian economy will benefit from the recent strength in US data.
At 12.00 pm, the Canadian dollar was at 1.0566 against the greenback, down from well above 1.06 earlier today, and from above 1.10 a month ago.
In particular, stronger than expected US job creation figures and manufacturing activity on Friday helped the loonie notch good gains.
Analysts at BNP Paribas said the rebound of the US manufacturing sector now increases "Bank of Canada's comfort in hiking rates on July 10."
"The strong US labour market reading also suggests that the slowdown in US consumption and thereby the Canadian outlook would not be too weak," they added.
But talk of the loonie reaching parity with the US dollar may yet be premature and in the unlikely event that it happens, the gains are not seen sticking, said Steve Barrow of Bear Stearns.
He also expects the Bank of Canada would eventually make comments in the hope of tempering the Canadian dollar's gains, but without actually interfering in the market.
The Canadian dollar has risen consistently since March 20, when strong inflation figures for February were released, reversing the likelihood then of a possible rate cut by the Bank of Canada.
The central bank kept its key interest rate unchanged at 4.25 pct on May 29, for the eighth executive time over the past year, but added it could be necessary to raise it in the near future to allay inflationary pressures.
The bank had noted that economic growth and inflation in Canada during the first part of the year were stronger than the bank expected. The next meeting is on July 10.

Jun 4 2007, 11:27 GMT

Foreign Exchanges - Continental Forward Rates

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LONDON (Thomson Financial) - Euro
1 Month 7.00 - 10.00 dis
2 Months 16.00 - 20.00 dis
3 Months 26.00 - 30.00 dis
6 Months 54.70 - 56.20 dis
12 Months 105.90 - 108.40 dis

Denmark
1 Month 21.0 - 6.0 prm
3 Months 53.0 - 28.0 prm

Norway
1 Month 20.0 - 4.0 prm
3 Months 45.0 - 24.0 prm

Sweden
1 Month 34.0 - 20.0 prm
3 Months 87.0 - 67.0 prm

Japan
1 Month 107.0 - 93.0 prm
3 Months 319.0 - 298.0 prm

Switzerland
1 Month 72.0 - 59.0 prm
3 Month 215.0 - 188.0 prm

Canada
1 Month 29.0 - 19.0 prm
3 Months 82.0 - 62.0 prm

Jun 4 2007, 11:24 GMT

Dollar Forward Rates

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LONDON (Thomson Financial) - New York
1 mth 4.70 - 4.55 prm
3 mths 20.10 - 19.90 prm
6 mths 50.90 - 50.10 prm
12 mths 129.25 - 127.25 prm

Jun 4 2007, 11:23 GMT

Afternoon Interbank Intercurrency

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LONDON (Thomson Financial) - Afternoon Interbank Intercurrency
(RATES SUPPLIED BY BARCLAYS INTL)

CANADA
TOM/NEXT 4.19 - 4.23
7 DAY 4.22 - 4.24
1 MTH 4.22 - 4.24
3 MTHS 4.35 - 4.38
6 MTHS 4.51 - 4.55
12 MTHS 4.73 - 4.77

JAPAN
TOM/NEXT 0.54 - 0.57
7 DAY 0.56 - 0.59
1 MTH 0.59 - 0.62
3 MTHS 0.65 - 0.68
6 MTHS 0.75 - 0.78
12 MTHS 0.89 - 0.92

STERLING
TOM/NEXT 5.54 - 5.57
7 DAY 5.57 - 5.61
1 MTH 5.62 - 5.65
3 MTHS 5.77 - 5.80
6 MTHS 5.92 - 5.95
12 MTHS 6.12 - 6.15

EURO
TOM/NEXT 3.75 - 3.77
7 DAY 3.76 - 3.79
1 MTH 4.01 - 4.04
3 MTHS 4.09 - 4.12
6 MTHS 4.22 - 4.25
12 MTHS 4.45 - 4.48

Jun 4 2007, 11:15 GMT

Italy sees G8 final statement including currency, rate comments - diplomats

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MILAN (Thomson Financial) - Italian prime minister Romano Prodi expects the G8 summit's final communique to include comments on exchange rates and monetary policy, said diplomatic sources close to Prodi.
Even though the issues are not on the meeting's agenda, state and government heads from the eight countries are expected to include conclusions in their final summit communique, they said.
The diplomats gave no further details.
Reports have said Prodi discussed the euro's strength against the dollar and Asian currencies at his recent meeting in Paris with French president Nicholas Sarkozy.

Jun 4 2007, 11:13 GMT

UK housing market yet to absorb recent rate hikes - RICS

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LONDON (Thomson Financial) - The UK housing market, which is already showing signs of cooling off, is yet to fully absorb the impact of the Bank of England's recent tightening of monetary policy, a leading industry body said.
"The full impact of current rate hikes on the housing market should not start to appear until after the summer," economists at the Royal Institute of Chartered Surveyors said.
The housing market continues to grow strongly but recent surveys have given indications that the boom may be coming to an end.
The Land Registry survey for April showed prices are being buoyed by London, while house prices actually fell in four English regions. Meanwhile, figures from the Bank of England showed mortgage approvals fell for the third straight month in April.
Both of these indicators were compiled from data taken before the BoE's quarter-point hike in interest rates in May.
The central bank has raised rates four times since last August, to a six-year high of 5.50 pct, in an attempt to bring inflation back down to the 2 pct target. Many analysts believe at least one more rate hike is on the cards this year.