Euro Strengthens to Eight-Week High as Trichet Cites Signs of Recovery

http://www.bloomberg.com/news/2010-07-10/euro-strengthens-to-eight-week-high-as-trichet-cites-signs-of-recovery.html

China's Trade Surplus Widens, Adding Pressure on Yuan

http://www.bloomberg.com/news/2010-07-10/china-june-trade-surplus-20-02-billion-exports-rise-44-customs-says.html

Fitch: British budget strong intention ‘to maintain the AAA status

http://www.associatedreportonline.com/fitch-british-budget-strong-intention-to-maintain-the-aaa-status/075

North Korea Avoids Blame in UN Statement on Warship Sinking

http://www.bloomberg.com/news/2010-07-08/china-u-s-agree-at-un-to-condemn-march-attack-on-south-korean-warship.html

S. Korea Raises Rates First Time Since Crisis as Asia Resilient to Crisis

http://www.bloomberg.com/news/2010-07-09/bank-of-korea-raises-interest-rate-to-2-25-to-stem-inflation-on-recovery.html

Bank of Korea researchers said in a report this week that it is “inevitable” that Greece will default because a shrinking economy will push its debt to an unsustainable level. While such an outcome isn’t imminent, it may trigger “major chaos” in global financial markets if it occurs, they said.

Concern over Europe’s debt crisis IS keeping some policy makers from raising interest rates. Australia this week joined the U.S., Europe and Indonesia in keeping borrowing costs unchanged to gauge whether the European crisis threatens the global economic recovery.

Korea Exchange Bank 4.875% Dollar Bond Spread Narrows (Update1)

http://www.businessweek.com/news/2010-07-08/korea-exchange-bank-4-875-dollar-bond-spread-narrows-update1-.html

The cost of insuring Asian bonds against non-payment fell to the lowest in two weeks, according to traders of credit- default swaps.

The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan dropped 9 basis points to 131 basis points as of 10:27 a.m. in Hong Kong, according to Credit Agricole CIB. That’s the lowest since June 23, according to CMA DataVision in New York. A basis point is 0.01 percentage point.

Korea Won to Fall Most in Asia in Quarter, Credit Agricole Says

http://www.businessweek.com/news/2010-07-08/korea-won-to-fall-most-in-asia-in-quarter-credit-agricole-says.html

China, South Korea’s biggest export market, will see economic growth slow this quarter, Kowalczyk said. Goldman Sachs Group Inc. lowered its economic growth forecast for China this year to 10.1 percent from 11.4 percent last week.