MANILA — Philippine stocks closed 1.31 percent lower on Wednesday.
The benchmark Philippine Stock Exchange index decreased by 42. 88 points to 3,222.19. The all-share index went down by 26.70 points, or 1.30 percent, to 2,032.26.
The trade volume reached 5.09 billion shares worth 3.26 billion pesos (72.06 million U.S. dollars).
—-
SEOUL — South Korean stocks closed lower Wednesday on weak investor sentiment due to European debt woes.
The benchmark Korea Composite Stock Price Index (KOSPI) went down 13.16 points, or 0.8 percent, to 1,630.08, the third consecutive downward session.
Trading volume was moderate at 405.4 million shares worth 6.64 trillion won (5.7 billion U.S. dollars), with losers outpacing gainers 545 to 281.
—-
TOKYO — Japanese stocks fell Wednesday, with the key Nikkei index briefly hitting a three-month intraday low on stronger yen against the euro.
After tumbling to as low as 10,041.93 in the morning, the lowest since Feb. 16, the 225-issue Nikkei Stock Average trimmed earlier losses to end the day down 55.80 points, or 0.54 percent, to 10,186.84.
—-
HONG KONG — Hong Kong stocks closed down 360.50 points, or 1. 81 percent, at 19,584.44 on Wednesday.
Turnover totaled 58.52 billion HK dollars compared with Tuesday ’s 57.67 billion HK dollars (1 U.S. dollar equals to 7.799 HK dollars).
—-
HANOI — Vietnam’s stock market index, the VN-Index, closed at 494.9 points on Wednesday, down 13.40 points, or 2.64 percent, against the previous trading day.
A total of 60.06 million shares worth 1.97 trillion Vietnamese dong (VND) (104.8 million U.S. dollars) changed hands at the Ho Chi Minh City Stock Exchange. Prices of seven stocks went up, 212 dropped while 13 remained unchanged.
—-
TAIPEI — Taiwan’s share prices closed lower on Wednesday with the weighted index falling 26.14 points, or 0.34 percent, to close at 7,559.16, according to news reaching here from Taipei.
The local bourse opened at 7,527.62 and fluctuated between 7, 467.2 and 7,588.09 during the day’s trading. Turnover totaled 97. 51 billion new Taiwan dollars (about 3.05 billion U.S. dollars).
—-
SINGAPORE — The shares prices in Singapore fell 69.81 points or 2.45 percent on Wednesday with the benchmark Straits Times Index (STI) closing at 2,774.54 points.
The overall volume stood at 1.50 billion shares worth 1.75 billion Singapore dollars (about 0.81 billion U.S. dollars).
—-
KUALA LUMPUR — The Malaysia stock market ended lower here on Wednesday.
The Kuala Lumpur Composite Index (KLCI) was at 1,308.23 down 21. 94 points or 1.68 percent, and the Emas was at 8,791.11 down 156. 79 points or 1.78 percent.
—-
DHAKA — Bangladesh’s Dhaka Stock Exchange All Shares Price Index (DSI) closed at 4,870.18 points on Wednesday, up 36.47 points or 0.75 percent from Tuesday’s finish.
The total turnover came down to about 19.40 billion taka (about 277.13 million U.S. dollars) on Wednesday from about 20.41 billion taka (about 291.63 million U.S. dollars) on Tuesday.
—-
JAKARTA — Share prices on the Indonesia Stock Exchange closed lower on Wednesday as investors were under the negative influence of the world markets.
The composite index decreased 104.74 points (3.69 percent) to close at 2,729 with 5.5 billion shares worth 5 trillion rupiah ( some 550 million U.S. dollars) changing hands.
—-
COLOMBO — Share prices on the Colombo Stock Exchange closed lower on Wednesday with the key Colombo All Share Price Index down 14.13 points or 0.33 percent to close at 4,243.54 points.
—-
MUMBAI — The Indian stock benchmark Sensex dived 467 points or 2.77 percent Wednesday.
The index saw sharp decrease in the second half of trading session and ended at 16,408.49 points.
—-
SHANGHAI — China’s benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,587.81 points Wednesday, down 0.27 percent, or 6.98 points, from the previous close.
A Share Index: 2,713.65 points, down 7.25 points, or 0.27 percent;
B Share Index: 210.79 points, down 1.55 points, or 0.73 percent;
Total Turnover: 76.63 billion yuan (11.2 billion U.S. dollars).
—-
SHENZHEN — The Shenzhen Component Index on the Shenzhen Stock Exchange closed at 9,991.4 points Wednesday, down 12.41 points, or 0.12 percent, from the previous close.
A Share Index: 10,751.08 points, down 12.07 points, or 0.11 percent;
B Share Index: 3,935.34 points, down 52.48 points, or 1.32 percent;
Total Turnover: 62.9 billion yuan (9.21 billion U.S. dollars).
StockSource.us ABOUT US: Stock Source is a full service investor relations firm dedicated to growth stocks. We seek out innovative, emerging companies poised for growth and tell their stories to qualified, aggressive investors looking for ground floor opportunities. We connect investors with investment prospects—cutting through the noise and churn of Wall Street to shine the spotlight on companies on their way up. These companies trade on the Nasdaq, Amex, OTCBB, and Pinksheets.
Showing posts with label Asia. Show all posts
Showing posts with label Asia. Show all posts
Wednesday, 19 May 2010
Tuesday, 18 May 2010
Tokyo stocks mixed with weak euro, Asian stocks in focus+
TOKYO, May 18 (AP) - (Kyodo)—Tokyo stocks finished mixed Tuesday as a slight recovery of the euro against the yen provided some relief to investors, but concern persisted about a further slide in the single European currency.
The 225-issue Nikkei Stock Average rose 6.88 points, or 0.07 percent, from Monday to 10,242.64, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 6.52 points, or 0.71 percent, to 913.91.
Decliners were led by the sea transport, oil and coal products, and mining sectors. Advancers included the fishery and forestry, pulp and paper, and pharmaceutical sectors.
Tokyo stocks opened higher as a weaker yen against the euro prompted investors to buy back shares, especially those of Japanese exporters that rely on Europe for a relatively high proportion of sales, brokers said. A weaker yen is welcomed by investors as it boosts the value of exporters' overseas profits when repatriated.
But after a round of buybacks, stocks trimmed earlier gains as the euro failed to gather further upward momentum and Asian stocks were mostly in negative territory, brokers added.
"The market seems to be shifting to an adjustment mood," said Masumi Yamamoto, equity market analyst at Daiwa Securities Capital Markets Co.
Investors "are looking ahead to a possible slide in the euro...with persistent worries about Europe as well as China still in mind," Yamamoto added.
The recent trend of a strong yen against the euro has been at the forefront of investor minds, brokers said, as it will affect shares of Japanese exporters that play a big part in the Tokyo stock market.
The euro was trading around the lower 114 yen zone, up from the upper 112 yen zone in Tokyo, but the common currency's recovery has been rather modest on worries that the global economy could wither amid the debt crisis in Greece and austerity measures by Greece, Spain, Portugal.
StockSource.usABOUT US:Stock Source is a full service investor relations firm dedicated to growth stocks. We seek out innovative, emerging companies poised for growth and tell their stories to qualified, aggressive investors looking for ground floor opportunities.We connect investors with investment prospects—cutting through the noise and churn of Wall Street to shine the spotlight on companies on their way up. These companies trade on the Nasdaq, Amex, OTCBB, and Pinksheets.
The 225-issue Nikkei Stock Average rose 6.88 points, or 0.07 percent, from Monday to 10,242.64, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 6.52 points, or 0.71 percent, to 913.91.
Decliners were led by the sea transport, oil and coal products, and mining sectors. Advancers included the fishery and forestry, pulp and paper, and pharmaceutical sectors.
Tokyo stocks opened higher as a weaker yen against the euro prompted investors to buy back shares, especially those of Japanese exporters that rely on Europe for a relatively high proportion of sales, brokers said. A weaker yen is welcomed by investors as it boosts the value of exporters' overseas profits when repatriated.
But after a round of buybacks, stocks trimmed earlier gains as the euro failed to gather further upward momentum and Asian stocks were mostly in negative territory, brokers added.
"The market seems to be shifting to an adjustment mood," said Masumi Yamamoto, equity market analyst at Daiwa Securities Capital Markets Co.
Investors "are looking ahead to a possible slide in the euro...with persistent worries about Europe as well as China still in mind," Yamamoto added.
The recent trend of a strong yen against the euro has been at the forefront of investor minds, brokers said, as it will affect shares of Japanese exporters that play a big part in the Tokyo stock market.
The euro was trading around the lower 114 yen zone, up from the upper 112 yen zone in Tokyo, but the common currency's recovery has been rather modest on worries that the global economy could wither amid the debt crisis in Greece and austerity measures by Greece, Spain, Portugal.
StockSource.usABOUT US:Stock Source is a full service investor relations firm dedicated to growth stocks. We seek out innovative, emerging companies poised for growth and tell their stories to qualified, aggressive investors looking for ground floor opportunities.We connect investors with investment prospects—cutting through the noise and churn of Wall Street to shine the spotlight on companies on their way up. These companies trade on the Nasdaq, Amex, OTCBB, and Pinksheets.
Wednesday, 31 March 2010
FOREX, COMMODITIES, STOCKS OUTLOOK March 31st: Analysis, Key Events, Trends, Trade Ideas
Stocks: Today: Asia mixed, Europe up. Stocks chop around due to both light holiday volume, as well as caution stemming from a weak Greek bond sale thus far and the usual uncertainty ahead of US Non-farms Payrolls
.- FX: Slight bias against safety currencies [JPY, USD, CHF in order of safety appeal] vs. risk currencies [AUD, NZD, CAD, EUR, GBP in order of risk appetite appeal], as stocks essentially flat, USD gains against fellow safeties and the Euro, but mixed vs. commodity dollars (and the GBP on better than expected Q4 UK GDP).
- Main events: TUES: GBP Final GDP q/q+, USD CB Consumer Confidence+, WED AUD Building Approvals-, Retail Sales-, NZD NBNZ Bus. Confidence-, CHF KOF Econ Barometer USD ADP Non-Farm Payrolls, CAD GDP m/m, JPY Tankan Mfg Index AUD Trade Balance CNY Mfg PMI GBP Mfg PMI USD Unemployment Claims, Challenger Job Cuts, USM Mfg PMI, FRI: USD NFP & Unemployment Rate
- Big Theme: Risk assets mostly continue to trade in ranges of the past weeks due to light holiday volume and caution ahead of both US Job Reports and this week’s Greek 12 year bond sale which will quickly test whether last week’s EU Contingency Plan succeeded in restoring confidence enough to lower Greek borrowing costs. Results thus far are not encouraging.
STOCKS:
US: The overall market finished flat after interest in a better-than-expected consumer confidence report dissipated. We believe the normal caution ahead of the US monthly jobs reports and concerns over Greece’s current inability to sell bonds also weighed on stocks.
A stronger-than-expected improvement in the May Consumer Confidence Index to 52.5 further improved what was already a generally positive tone in the early going. Though gains were modest, the morning advance was broad based.
Still, credit analysts at S&P remain concerned about Britain’s fiscal deficit. Such concern offers another reminder that even historically stable global economies face sovereign debt challenges. To its credit, though, France’s AAA rating was affirmed by Fitch analysts, who also said the outlook for France’s grade is stable.
Strength in the dollar dragged down the broader market, but tech stocks showed resilience. That gave the sector a 0.5% gain and helped the Nasdaq edge out its counterparts.
Financials were part of the reason that the broader market struggled to post a gain. The sector, which is second to tech by market weight, finished with a 0.7% loss. That made it the worst performing sector in the S&P 500. Diversified financial services stocks (-1.3%) were the weakest performers in the sector; they were also among the most actively traded names by volume in the entire market.
Overall trading volume was light once again, under 1 billion shares traded hands on the NYSE. The low-volume trade has been consistent in recent weeks as participants continue to take a cautious stance, wary of jumping in or out of the market for fear of a correction or missing further gains.
Asia Stock Outlook: Down: At the close early Wednesday GMT: Japan’s Nikkei average hit an 18-month intraday high before paring gains on Wednesday, the final day of the financial year, but further gains were expected in the new quarter as a global economic recovery picks up strength.
European Stock Outlook Up At the open early Wednesday GMT: European stocks pared early losses and turned slightly positive in the first few minutes of trading on Wednesday, as steady oil prices boosted energy stocks, eclipsing a dip in heavyweight mining shares.
At 0719 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.06 percent at 1,080.05 points. The benchmark index had a roller-coaster session on Tuesday, hitting an 18-month high before surrendering gains and ending the day flat.
ASIA-MIXED N225I % HS % SSEC % FTSTI % AORD %
EUROPE FLAT FTSE % DAX CAC %
US- UP S&P +0.00% DJIA +0.11% NASDAQ +0.11%
THIS MORNING DOWN N225I -0.06% HS -0.46% SSEC -0.62% FTSTI -0.84% AORD -0.68%
UP FTSE +0.24% DAX +0.10% CAC +0.10%
Commodities Outlook: Flat: In Tuesday and early Wednesday trade GMT: continuing to tight range trading
Crude Oil Daily Outlook: Up: In Tuesday and early Wednesday trade GMT, futures continuing higher following overall risk appetite, rising as stocks continue higher and the USD pulled back over the past days.
Gold Daily Outlook own: In Tuesday and early Wednesday trade GMT again diverging from stocks, overall risk appetite, beginning to form another leg in its downtrend. Note that gold’s pullback in late November was the earliest leading indicator of the last major risk asset pullback, which did not occur until nearly a month later for oil and stocks.
FOREX Daily Outlook: In Tuesday and early Wednesday trade GMT: Continuing bias to risk currencies as risk assets hang on at or near new highs amid ongoing uncertainty about Greece and this Friday’s US jobs reports. Tuesday USD gained vs. fellow safeties and the Euro, but mixed vs. commodity dollars (and the GBP on better than expected Q4 UK GDP).
This week ends with two significant market moving events for the USD and thus the entire forex markets: the attempted Greek 12 year bond sale and the US monthly jobs reports Friday. The Greek bond sale has been weak thus far, which should hurt the Euro (and thus help the USD) because it undermines the EZ confidence and the credibility of the new EU contingency plan’s effectiveness at calming markets to allow Greece ( and its fellow PIIGS block) lower borrowing costs.
However expectations for Friday’s US jobs reports are high, leaving markets vulnerable to disappointment, which would hurt the USD
US Dollar Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. the JPY, AUD, NZD, EUR, steady vs. the CHF, down vs. the CAD, GBP. Key data today is the ADP figure, Chicago Mfg PMI
In NY trade yesterday the dollar made a move up from negative territory to finish with a 0.3% gain against competing currencies. The greenback’s gain was somewhat restricted by strength in the British pound, which garnered support amid news that Britain’s fourth quarter GDP was upwardly revised to reflect a 0.4% increase.
Euro Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. the JPY, down vs. the CHF, USD flat vs. the AUD, down vs. the GBP, CAD – Pressured by anemic demand for Greek bonds, and a possibly very good US monthly jobs report that could boost the USD. However, bouncing back in early European trade as German unemployment figures showed the largest drop since August 2008.
Regarding the impact of the Greek bond sale, key points include:
The euro fell victim to fresh concerns about Greece’s ability to borrow. After EU leaders announced a financial aid mechanism for Greece last week, they stressed that aid is not needed at this time.
Prime Minister Papandreou concurred by saying that the country would first try its luck with the markets by raising money through bond auctions. Unfortunately weak demand has triggered many questions about the country’s ability to borrow. Greece’s surprise auction of bonds that mature in 2022 this morning raised only EUR 390 million, less than half of their EUR 1 billion upper limit.
Greece needs to raise EUR 10.5 billion by the end of May to avoid tapping the bailout plan put into place and resurrecting concerns about a fiscal crisis within the Euro zone. What the results of the bond auction tell us is that just because the Germans and French have agreed to provide support to Greece with the help of the IMF, it is still up to Greece to move forward with their austerity package and reduce their deficit. Unfortunately, austerity spending takes time to show results, and are unlikely to show results within the coming months
While it is good that a mechanism for aid is in place, needing to use it would still be an embarrassment for the Euro zone. As noted in our most recent post The EU Contingency Plan: Doomed By Its Main Strength, it’s unclear how smoothly the EU could actually get the cash to Greece should sudden need arise, assuming Angie Merkel is really willing to face her voters after having just tossed a chunk of their taxes at a very unpopular cause.
Meanwhile, even though Iceland is not a member of the Euro zone, S&P’s decision to downgrade their debt raises contagion fears because they borrow from banks within the region and it reminds everyone that many problems still exist in Europe..
Yen Daily Outlook: In Tuesday and early Wednesday trade GMT: Down vs. the USD, CHF, GBP, AUD, EUR
British Pound Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. everything on better than expected Q4 GDP which, given its oversold nature, left it ripe for a bounce on any kind of positive news. Over the past weeks attempting to carve out a bottom for now.
Australian Dollar Daily Outlook: In Tuesday and early Wednesday trade GMT: Down or flat vs. most fx except for the JPY as poor retail and building data pressure it
New Zealand Dollar Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. the USD, JPY, down vs. the GBP
Canadian Dollar Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. most fx except for the GBP
Swiss Franc Daily Outlook In Tuesday and early Wednesday trade GMT: down vs. the AUD, EUR, up vs. the JPY, steady but fading vs. the USD
CONCLUSIONS & Big Picture: Short term bias for risk assets, The S&P 500, our key risk asset barometer, like other major stocks, holding on at/near 52 week highs Also, fx and commodities continuing their range trading. Long Term Bias Down:, especially in July, when 2 major events hit: Spain needs to sell about 30 bln euros in bonds AND a massive wave of US mortgage rate resets not seen since 2007 begins. The last time we saw this magnitude of rising mortgage rates markets stalled out and ultimately crashed. NB: Never fight the trend, no matter how irrational, as markets can stay irrational longer than you can stay solvent (Keynes). Therefore, as anyone who follows our trade recommendations knows, we always wait for some breach of key support/resistance as a signal to enter a position as odds appear to be in our favor, and even then only when the likely target is more than 2x as far away as out stop loss (which we ALWAYS USE, RIGHT?) so that our winning trade profits exceed out losses by at least 2:1.
Trade Ideas: We favor the dollar given the likely ongoing problems with the Greek bond sale and the likely good US jobs figures, but no recommendations until key support resistance levels breached
Disclosure: No positions
http://www.stocksource.us
ABOUT US:
Stock Source is a full service investor relations firm dedicated to growth stocks. We seek out innovative, emerging companies poised for growth and tell their stories to qualified, aggressive investors looking for ground floor opportunities.
We connect investors with investment prospects—cutting through the noise and churn of Wall Street to shine the spotlight on companies on their way up. These companies trade on the Nasdaq, Amex, OTCBB, and Pinksheets.
.- FX: Slight bias against safety currencies [JPY, USD, CHF in order of safety appeal] vs. risk currencies [AUD, NZD, CAD, EUR, GBP in order of risk appetite appeal], as stocks essentially flat, USD gains against fellow safeties and the Euro, but mixed vs. commodity dollars (and the GBP on better than expected Q4 UK GDP).
- Main events: TUES: GBP Final GDP q/q+, USD CB Consumer Confidence+, WED AUD Building Approvals-, Retail Sales-, NZD NBNZ Bus. Confidence-, CHF KOF Econ Barometer USD ADP Non-Farm Payrolls, CAD GDP m/m, JPY Tankan Mfg Index AUD Trade Balance CNY Mfg PMI GBP Mfg PMI USD Unemployment Claims, Challenger Job Cuts, USM Mfg PMI, FRI: USD NFP & Unemployment Rate
- Big Theme: Risk assets mostly continue to trade in ranges of the past weeks due to light holiday volume and caution ahead of both US Job Reports and this week’s Greek 12 year bond sale which will quickly test whether last week’s EU Contingency Plan succeeded in restoring confidence enough to lower Greek borrowing costs. Results thus far are not encouraging.
STOCKS:
US: The overall market finished flat after interest in a better-than-expected consumer confidence report dissipated. We believe the normal caution ahead of the US monthly jobs reports and concerns over Greece’s current inability to sell bonds also weighed on stocks.
A stronger-than-expected improvement in the May Consumer Confidence Index to 52.5 further improved what was already a generally positive tone in the early going. Though gains were modest, the morning advance was broad based.
Still, credit analysts at S&P remain concerned about Britain’s fiscal deficit. Such concern offers another reminder that even historically stable global economies face sovereign debt challenges. To its credit, though, France’s AAA rating was affirmed by Fitch analysts, who also said the outlook for France’s grade is stable.
Strength in the dollar dragged down the broader market, but tech stocks showed resilience. That gave the sector a 0.5% gain and helped the Nasdaq edge out its counterparts.
Financials were part of the reason that the broader market struggled to post a gain. The sector, which is second to tech by market weight, finished with a 0.7% loss. That made it the worst performing sector in the S&P 500. Diversified financial services stocks (-1.3%) were the weakest performers in the sector; they were also among the most actively traded names by volume in the entire market.
Overall trading volume was light once again, under 1 billion shares traded hands on the NYSE. The low-volume trade has been consistent in recent weeks as participants continue to take a cautious stance, wary of jumping in or out of the market for fear of a correction or missing further gains.
Asia Stock Outlook: Down: At the close early Wednesday GMT: Japan’s Nikkei average hit an 18-month intraday high before paring gains on Wednesday, the final day of the financial year, but further gains were expected in the new quarter as a global economic recovery picks up strength.
European Stock Outlook Up At the open early Wednesday GMT: European stocks pared early losses and turned slightly positive in the first few minutes of trading on Wednesday, as steady oil prices boosted energy stocks, eclipsing a dip in heavyweight mining shares.
At 0719 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.06 percent at 1,080.05 points. The benchmark index had a roller-coaster session on Tuesday, hitting an 18-month high before surrendering gains and ending the day flat.
ASIA-MIXED N225I % HS % SSEC % FTSTI % AORD %
EUROPE FLAT FTSE % DAX CAC %
US- UP S&P +0.00% DJIA +0.11% NASDAQ +0.11%
THIS MORNING DOWN N225I -0.06% HS -0.46% SSEC -0.62% FTSTI -0.84% AORD -0.68%
UP FTSE +0.24% DAX +0.10% CAC +0.10%
Commodities Outlook: Flat: In Tuesday and early Wednesday trade GMT: continuing to tight range trading
Crude Oil Daily Outlook: Up: In Tuesday and early Wednesday trade GMT, futures continuing higher following overall risk appetite, rising as stocks continue higher and the USD pulled back over the past days.
Gold Daily Outlook own: In Tuesday and early Wednesday trade GMT again diverging from stocks, overall risk appetite, beginning to form another leg in its downtrend. Note that gold’s pullback in late November was the earliest leading indicator of the last major risk asset pullback, which did not occur until nearly a month later for oil and stocks.
FOREX Daily Outlook: In Tuesday and early Wednesday trade GMT: Continuing bias to risk currencies as risk assets hang on at or near new highs amid ongoing uncertainty about Greece and this Friday’s US jobs reports. Tuesday USD gained vs. fellow safeties and the Euro, but mixed vs. commodity dollars (and the GBP on better than expected Q4 UK GDP).
This week ends with two significant market moving events for the USD and thus the entire forex markets: the attempted Greek 12 year bond sale and the US monthly jobs reports Friday. The Greek bond sale has been weak thus far, which should hurt the Euro (and thus help the USD) because it undermines the EZ confidence and the credibility of the new EU contingency plan’s effectiveness at calming markets to allow Greece ( and its fellow PIIGS block) lower borrowing costs.
However expectations for Friday’s US jobs reports are high, leaving markets vulnerable to disappointment, which would hurt the USD
US Dollar Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. the JPY, AUD, NZD, EUR, steady vs. the CHF, down vs. the CAD, GBP. Key data today is the ADP figure, Chicago Mfg PMI
In NY trade yesterday the dollar made a move up from negative territory to finish with a 0.3% gain against competing currencies. The greenback’s gain was somewhat restricted by strength in the British pound, which garnered support amid news that Britain’s fourth quarter GDP was upwardly revised to reflect a 0.4% increase.
Euro Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. the JPY, down vs. the CHF, USD flat vs. the AUD, down vs. the GBP, CAD – Pressured by anemic demand for Greek bonds, and a possibly very good US monthly jobs report that could boost the USD. However, bouncing back in early European trade as German unemployment figures showed the largest drop since August 2008.
Regarding the impact of the Greek bond sale, key points include:
The euro fell victim to fresh concerns about Greece’s ability to borrow. After EU leaders announced a financial aid mechanism for Greece last week, they stressed that aid is not needed at this time.
Prime Minister Papandreou concurred by saying that the country would first try its luck with the markets by raising money through bond auctions. Unfortunately weak demand has triggered many questions about the country’s ability to borrow. Greece’s surprise auction of bonds that mature in 2022 this morning raised only EUR 390 million, less than half of their EUR 1 billion upper limit.
Greece needs to raise EUR 10.5 billion by the end of May to avoid tapping the bailout plan put into place and resurrecting concerns about a fiscal crisis within the Euro zone. What the results of the bond auction tell us is that just because the Germans and French have agreed to provide support to Greece with the help of the IMF, it is still up to Greece to move forward with their austerity package and reduce their deficit. Unfortunately, austerity spending takes time to show results, and are unlikely to show results within the coming months
While it is good that a mechanism for aid is in place, needing to use it would still be an embarrassment for the Euro zone. As noted in our most recent post The EU Contingency Plan: Doomed By Its Main Strength, it’s unclear how smoothly the EU could actually get the cash to Greece should sudden need arise, assuming Angie Merkel is really willing to face her voters after having just tossed a chunk of their taxes at a very unpopular cause.
Meanwhile, even though Iceland is not a member of the Euro zone, S&P’s decision to downgrade their debt raises contagion fears because they borrow from banks within the region and it reminds everyone that many problems still exist in Europe..
Yen Daily Outlook: In Tuesday and early Wednesday trade GMT: Down vs. the USD, CHF, GBP, AUD, EUR
British Pound Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. everything on better than expected Q4 GDP which, given its oversold nature, left it ripe for a bounce on any kind of positive news. Over the past weeks attempting to carve out a bottom for now.
Australian Dollar Daily Outlook: In Tuesday and early Wednesday trade GMT: Down or flat vs. most fx except for the JPY as poor retail and building data pressure it
New Zealand Dollar Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. the USD, JPY, down vs. the GBP
Canadian Dollar Daily Outlook: In Tuesday and early Wednesday trade GMT: Up vs. most fx except for the GBP
Swiss Franc Daily Outlook In Tuesday and early Wednesday trade GMT: down vs. the AUD, EUR, up vs. the JPY, steady but fading vs. the USD
CONCLUSIONS & Big Picture: Short term bias for risk assets, The S&P 500, our key risk asset barometer, like other major stocks, holding on at/near 52 week highs Also, fx and commodities continuing their range trading. Long Term Bias Down:, especially in July, when 2 major events hit: Spain needs to sell about 30 bln euros in bonds AND a massive wave of US mortgage rate resets not seen since 2007 begins. The last time we saw this magnitude of rising mortgage rates markets stalled out and ultimately crashed. NB: Never fight the trend, no matter how irrational, as markets can stay irrational longer than you can stay solvent (Keynes). Therefore, as anyone who follows our trade recommendations knows, we always wait for some breach of key support/resistance as a signal to enter a position as odds appear to be in our favor, and even then only when the likely target is more than 2x as far away as out stop loss (which we ALWAYS USE, RIGHT?) so that our winning trade profits exceed out losses by at least 2:1.
Trade Ideas: We favor the dollar given the likely ongoing problems with the Greek bond sale and the likely good US jobs figures, but no recommendations until key support resistance levels breached
Disclosure: No positions
http://www.stocksource.us
ABOUT US:
Stock Source is a full service investor relations firm dedicated to growth stocks. We seek out innovative, emerging companies poised for growth and tell their stories to qualified, aggressive investors looking for ground floor opportunities.
We connect investors with investment prospects—cutting through the noise and churn of Wall Street to shine the spotlight on companies on their way up. These companies trade on the Nasdaq, Amex, OTCBB, and Pinksheets.
Friday, 5 March 2010
U.S. stocks poised for early gains
LONDON (CNNMoney.com) -- U.S. stocks were poised for a early gains Friday, ahead of the government's highly anticipated employment report.
At 5:06 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were slightly higher.
Futures measure current index values against perceived future performance and can offer an indication of how markets will open when trading begins in New York.
Wall Street finished Thursday's session higher, but trading was choppy as investors took a wait-and-see attitude before the monthly jobs report.
Jobs: The Labor Department will release its report on February payrolls at 8:30 a.m. ET. Economists surveyed by Briefing.com expect the report to show the economy lost 63,000 jobs last month and for the unemployment rate to tick higher to 9.8%.
World markets: European markets rose in morning trading. Britain's FTSE 100 and Germany's DAX both added 0.3% and France's CAC 40 gained 0.5%.
Asian shares ended the session with gains. Japan's Nikkei surged 2.2% and the Hang Seng in Hong Kong rallied 1%.
At 5:06 a.m. ET, Dow Jones industrial average, S&P 500 and Nasdaq 100 futures were slightly higher.
Futures measure current index values against perceived future performance and can offer an indication of how markets will open when trading begins in New York.
Wall Street finished Thursday's session higher, but trading was choppy as investors took a wait-and-see attitude before the monthly jobs report.
Jobs: The Labor Department will release its report on February payrolls at 8:30 a.m. ET. Economists surveyed by Briefing.com expect the report to show the economy lost 63,000 jobs last month and for the unemployment rate to tick higher to 9.8%.
World markets: European markets rose in morning trading. Britain's FTSE 100 and Germany's DAX both added 0.3% and France's CAC 40 gained 0.5%.
Asian shares ended the session with gains. Japan's Nikkei surged 2.2% and the Hang Seng in Hong Kong rallied 1%.
Asian shares surge on U.S. data, euro slips
(Reuters) - Asian shares surged on Friday after encouraging retail sales and jobs data from the United States suggested Asia's biggest export market was stabilizing, while the euro fell on worries about heavily indebted Greece.
Japan's benchmark Nikkei average .N225 was up 2.07 percent at 10,355.63 at 0230 GMT (9:30 p.m. EST), while the broader Topix gained 1.53 percent to 911.34.
The MSCI index of Asian shares outside Japan .MIAPJ0000PUS was up 0.77 percent at 405.86.
Also boosting share sentiment in Tokyo, the Nikkei newspaper said that the Bank of Japan was examining a further easing of its already ultra-loose monetary policy and may make a decision on such a move as early as this month.
"In addition to a solid performance from the U.S. stocks, investors are welcoming a halt in the yen's advance against the dollar after a media report that the BOJ is considering additional easing measures," said Mitsuo Shimizu, deputy general manager at Cosmo Securities.
The dollar index .DXY rose to 80.58, with near-term resistance seen around 81.30, this week's high. The dollar also rose against the yen, inching up to 89.15 yen from around 89.07 yen late on Thursday in New York.
"If dollar/yen climbs back above 90 yen," Shimizu said, "the Nikkei could break out of range-bound trade, with the next target likely being around 10,500."
U.S. stocks rose on Thursday on the stronger-than-expected retail sales and a fall in first-time jobless claims. The Dow Jones industrial average .DJI closed up 47.38 points, or 0.46 percent, at 10,444.14.
February's monthly sales performance among U.S. retailers was the strongest since just before the recession started in 2007. The United States reported that first-time claims for jobless benefits fell by 29,000 to a seasonally adjusted 469,000 in the latest week.
On Friday, it releases its comprehensive monthly report on non-farm payrolls, the most closely watched figures on the U.S. labor market.
The report is expected to show a loss of 50,000 jobs in February, compared with 20,000 job cuts in January, a Reuters poll shows.
In the commodities markets, spot gold was at $1,132.40, down slightly from New York's close and it is expected to trade in a tight range ahead of the U.S. payrolls data due at 1330 GMT.
U.S. NYMEX crude was up 39 cents at $80.66 a barrel.
A short squeeze in the euro appeared to have run its course, with investors once again fretting about Greece.
Traders said the market was likely to stay cautious, steering clear of higher-yielding currencies, ahead of the U.S. jobs data.
"Greece worries continue and with investors still cautious about risk, I would have a bias toward the U.S. dollar ahead of the payrolls data," said Jonathan Cavenagh, currency strategist at Westpac.
The euro was down at $1.3572 from $1.3589 late in New York on Thursday when it lost 0.8 percent. It had risen above $1.37 following a robust response to a Greek debt auction on Thursday.
But if fell after the chief of the European Central Bank (ECB), Jean-Claude Trichet, said recovery in Europe would be uneven, squashing any outside chances of a near-term rise in record low euro zone interest rates.
The ECB, as expected, kept rates unchanged on Thursday, but took a small step in unwinding some its extraordinary support for the economy.
Investors also fretted whether Greece's fresh plans to address its debt woes would win wider support in the European Union ahead of a meeting of German Chancellor Angela Merkel with the Greek prime minister later on Friday.
The single currency has lost nearly 10 percent since November last year when sovereign debt problems surrounding Greece and other peripheral euro zone economies emerged.
Monday, 8 February 2010
Stock Watch: OWVI
Put OWVI on your watch list. It broke out of a resistance level on Friday. OWVI may keep climbing next week.
OWVI is the kind of stock that once it catches fire has a mind of it's own. These type of patterns happen a few times a year, and OWVI has a history of making big moves. This past Summer it had a rally that resulted in gains of roughly 900%!!!
The current pattern on OWVI shows an symmetrical triangle breakout.
View the chart here: http://img16.imageshack.us/img16/2024/owvichart.png OWVI just broke out on Friday so watch is very carefully. This could be just the start.
Here is the formal definitely of what a symmetrical triangle breakout is: http://www.investopedia.com/terms/s/symmetricaltriangle.asp
Asia is a populated place.
That's more than half the world's population. This kind of population represents huge opportunities for businesses in Asia.
OWVI is a holding company with management resourced in Asia and the United States that invests in technologies, communities and systems that facilitate trade, finance, communication and travel across international boundaries, cultures and languages.
The Asian market is representing huge opportunities for OWVI's 1World Card Program.
A lot of people who come from emerging countries do not have a bank account. These individuals have no secure way to store and carry money or to pay electronically. The 1World Card provides a powerful solution for this market.
The 1World Card ATM Card is a true bank issued, PIN-based ATM/Debit card accessible globally in over 140 countries at millions of locations.
OWVI CEO Stephen Prior stated, "We are very pleased to be able to offer our services to the unbanked and underserved. This is a validation of our common strategy which, from its inception, focused on the millions of good people in the unbanked and underserved market."
OWVI has expanded their global relationship to include new 1World Card Program s in countries and territories throughout Asia Pacific and now in Vietnam.
Vietnam has only issued around 10 million debit and credit cards as of December 2008, and the country has over 86 million citizens.
After a decade of reforms, Vietnam's economy is growing more than 7% a year, lifting incomes and reducing poverty.
According to the World Bank, the economic reforms have paid off. Vietnam's per capita income in the past 10 years has more than doubled!
Indonesia presents to OWVI a large market opportunity into one of Asia's fastest growing regions.
Today, there are some five million Indonesian migrant workers abroad, each receiving an average monthly salary of US$250.
OWVI CEO Steve Prior commented, "The remittances of migrant workers have a significant role to play in supporting economic and social development.
Sending money not only provides sustenance, but also provides opportunities for their families to better improve their lives. Better access to financial services and information, therefore, is important to ensure that the remittances are used for savings and productive investment. This in turn would sustainably enhance the living standards of migrant workers and their families."
Indonesia, the fourth most populous nation in the world, is highly diverse in terms of both terrain and culture. This nation of over 225.5 million people has a fast growing Indonesian community in the "new" migration countries, led by the United States.
OWVI announced a few months ago that they have negotiated with a bank to issue it's prepaid 1World Card in the United States!
More information on OWVI is available at their website: http://www.1worldventures.net Make sure you always do your own research and consult with your own financial professional.
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