Monday, April 11, 2011

20110411 0936 Global Market Related News.

 DJIA chart reading : correction range bound upside biased.

 Hang Seng chart reading : upside biased with possible pullback correction.

Seven reasons why the Fed won't follow the ECB
WASHINGTON, April 7 (Reuters) - The U.S. Federal Reserve is in no hurry to follow Europe down the interest rate-hike trail and probably won't budge from its ultra-easy policy stance until inflation and employment draw nearer to its goals.
The European Central Bank's well-telegraphed rate hike on Thursday may be the first of several this year as high oil costs drive consumer prices above the ECB's target.

Dollar falls against euro, oil at 2-1/2 year high
SINGAPORE, April 8 (Reuters) - The euro rose to a near 15-month high against the dollar on the single currency's widening yield advantage, while oil surged to a two-and-a-half year high on worries that war in Libya and unrest in the Middle East will disrupt supplies.   "So far this year commodities are relatively unshaken by bad news on the macro front," said Yingxi Yu, an analyst at Barclays Capital. "The market is comfortable with the expectations of a recovering global economy with an emphasis on the developed world rather than the developing world." .

Retail Sales in U.S. Probably Rose as Job Gains Overcame Surge in Gasoline (Source: Bloomberg)
U.S. retail sales probably climbed in March, indicating an improving labor market is helping Americans cope with rising gasoline prices, economists said before a report this week.

Obama to Propose New Deficit-Cutting Plan, Plouffe Says (Source: Bloomberg)
President Barack Obama, following up on the budget deal he reached with congressional leaders that averted a government shutdown, will announce long-term proposals this week for cutting the federal deficit, White House adviser David Plouffe said.

Dollar Advances as U.S. Lawmakers Agree to Spending Cuts to Avert Shutdown (Source: Bloomberg)
The dollar gained, snapping a two- day drop versus the yen, after U.S. lawmakers pulled the government back from the brink of a shutdown by agreeing to cut about $38 billion from federal spending this year.

Treasuries Decline Before Inflation Reports, Three Debt Auctions This Week (Source: Bloomberg)
Treasuries fell, extending a three- week loss, as economists said three government reports this week will show inflation is quickening.

China’s Export Growth Shows Economy Tolerating Rate Rise (Source: Bloomberg)
China’s faster-than-expected growth in exports and imports last month may allow Premier Wen Jiabao to strengthen his fight against inflation, which probably exceeded his target for the ninth straight month in March.

China 2011 Car Sales May Grow Slower Than Automakers’ Estimates (Source: Bloomberg)
China’s passenger-car sales may grow at a slower pace this year than was earlier estimated by a group of the nation’s automakers after the government ended incentives for purchases and raised fuel prices.

China’s March Car Sales ‘Below’ Expectations as Incentives End (Source: Bloomberg)
China’s passenger-car sales grew in March at a pace that was below forecasts after incentives ended and fuel prices rose, the China Association of Automobile Manufacturers said.

China Reports First Quarterly Trade Deficit in Seven Years (Source: Bloomberg)
China’s first quarterly trade deficit in seven years may ease pressure on the world’s biggest exporter to allow faster appreciation of the yuan.

Stiglitz Calls for New Global Reserve Currency to Prevent Trade Imbalances (Source: Bloomberg)
The world economy needs a new global reserve currency to help prevent trade imbalances that are reflected in the national debt of the U.S., said Nobel-prize winning economist Joseph Stiglitz .

Edano Says Japan Doesn’t Need BOJ to Help Fund Disaster Relief (Source: Bloomberg)
Chief Cabinet Secretary Yukio Edano said Japan can fund earthquake rebuilding without the central bank purchasing government bonds, the clearest signal yet that Prime Minister Naoto Kan won’t embrace more aggressive plans for stimulating the economy after last month’s disaster.

Japanese Stocks Drop as Oil Prices Surge, Citigroup Downgrades Carmakers (Source: Bloomberg)
Japanese stocks fell, led by carmakers, as Citigroup Inc. lowered its rating on the country’s auto sector, and after oil prices rose, sparking concern higher energy costs will damage corporate earnings.

Germany Reignites Debt Concerns With Greek Warning as Portugal Seeks Aid (Source: Bloomberg)
Germany warned that deficit-scarred Greece might need more financial relief, reviving European debt concerns just as Portugal seeks an 80 billion-euro ($116 billion) aid package. German Finance Minister Wolfgang Schaeuble said it is unclear whether Greece, the root of the year-old debt crisis, will need another cut in its bailout rate or a further extension of repayment terms to return to fiscal health.

Portugal must agree "harder" reforms to get aid
BUDAPEST, April 8 (Reuters) - Euro zone finance ministers told Portugal on Friday that it would have to implement new economic reforms that went beyond those proposed by its outgoing government if it hoped to secure aid from the EU and IMF.
Portugal bowed to intense pressure from financial markets and its European partners this week and became the third euro zone country after Greece and Ireland to request financial help from the European Union and the International Monetary Fund.

Indonesia Central Bank May Delay Interest-Rate Increase as Inflation Eases (Source: Bloomberg)
Indonesia’s central bank will probably extend a pause in raising interest rates after inflation slowed for a second month in March.

FOREX-Euro at 15-month high vs dollar on rate view
NEW YORK, April 8 (Reuters) - The euro rose to a 15-month high against the dollar on Friday, supported by expectations of more euro zone interest rate hikes, while the prospect of a U.S. government shutdown pushed the dollar broadly lower.
The euro was also helped by reported Middle East sovereign demand, though traders expected the single currency to struggle to breach $1.4430, where there was talk of a large option barrier being defended.

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