DJIA chart reading : correction range bound upside biased.
Hang Seng chart reading : pullback correction downside biased.
OECD indicator flags improved outlook in China, U.S.
PARIS, May 9 (Reuters) - The growth outlook in major industrialised nations is diverging with activity improving in North America, China and Russia and moderating in most European countries, the OECD's leading indicator for March showed on Monday.
The Paris-based Organisation for Economic Co-operation and Development (OECD) said its composite leading indicator for member countries rose to 103.2 points in March from 103.0 in February, well above a long-term average of 100.
U.S., China Pledge to Address Currency, Financial Issues (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner and Chinese Vice Premier Wang Qishan pledged today to tackle currency, financial services and trade conflicts between the world’s two biggest economies. At the start of the two-day Strategic and Economic Dialogue, Geithner said China has been making progress “towards a more flexible exchange rate” and weaning its economy off a dependence on exports. He also called for China to overhaul its financial system and said the U.S. will work to improve its fiscal outlook. Chinese Commerce Minister Chen Deming told reporters the yuan exchange rate will be discussed with U.S. officials this afternoon.
U.S. Will Urge China to Boost Interest Rates as Talks Start (Source: Bloomberg)
Treasury Secretary Timothy F. Geithner will urge China to allow higher interest rates when he meets with Chinese leaders this week, as the U.S. extends its push for a stronger yuan. Geithner will say China should relax controls on the financial system and give foreign banks and insurers more access, said David Loevinger, the Treasury Department’s senior coordinator for China. Officials from both nations are meeting in Washington today and tomorrow as part of the annual Strategic and Economic Dialogue.
Household Debt in U.S. Climbed 0.3% in First Quarter on Mortgage Balances (Source: Bloomberg)
U.S. households expanded their debt last quarter for the first time in more than two years as mortgage balances rose, according to a survey by the Federal Reserve Bank of New York. Consumer indebtedness rose 0.3 percent, or $33 billion, to $11.5 trillion at the end of March from Dec. 31, according to a quarterly report on household debt and credit released today. Households have slashed debt by $1.03 trillion, or 8.2 percent, since it peaked in the third quarter of 2008 as the financial crisis was unfolding.
U.S. Stocks Advance Amid Commodity Rebound as McDonald’s Gains on Sales (Source: Bloomberg)
U.S. stocks advanced, sending the Standard & Poor’s 500 Index higher for a second straight day, as commodity prices rebounded from the biggest weekly drop since 2008 and McDonald’s Corp. (MCD) rallied after sales topped estimates.
Hiring by U.S. companies hits 5-year high in April
WASHINGTON, May 6 (Reuters) - U.S. companies created jobs at the fastest pace in five years in April, pointing to underlying strength in the economy even as the jobless rate rose to 9.0 percent.
Private sector hiring, including a big jump at retailers, boosted overall nonfarm payrolls by 244,000, the largest increase in 11 months, the Labor Department said on Friday. Economists had expected a gain of only 186,000.
Oil Stocks Cheap as Tax No Threat to Profits (Source: Bloomberg)
U.S. oil companies’ profits have grown so fast that they’ve become the cheapest equities in the Standard & Poor’s 500 Index, just as the debate about taxing crude producers heats up. Energy suppliers in the S&P 500 have earned $481.1 billion since 2006, more than last year’s gross domestic product of Argentina, according to data compiled by Bloomberg. The 41 drillers, refiners and oilfield service providers may generate another $134.8 billion in 2011, based on analyst estimates that jumped 8.5 percent in April. The growth reduced valuations to 11.5 times projected income from 13.7 in March.
Japanese Stocks Gain First Day in Three on Higher Oil Prices; Inpex Rises (Source: Bloomberg)
Japanese stocks gained for the first time in three days as commodity prices advanced, boosting confidence about the strength of the global economy.
Yen Strengthens on Renewed Speculation Europe’s Debt Crisis Will Worsen (Source: Bloomberg)
The yen gained on renewed concern Europe’s debt crisis will worsen. Japan’s currency climbed to 115.08 yen per euro as of 9:07 a.m in Tokyo from 115.43 in New York yesterday. It rose to 80.23 yen per dollar from 80.36.
Euro Trades Near 6-Week Low as Rating Cut Renews Debt Concern (Source: Bloomberg)
The euro fell toward a six-week low against the yen after Standard & Poor’s cut Greece’s credit rating, renewing concern the region’s debt crisis is escalating.
Trichet Says Global Central Bankers Are United in Fight Against Inflation (Source: Bloomberg)
European Central Bank President Jean- Claude Trichet said the world’s central bankers are united in fighting inflation fueled by surging commodity prices and fast- growing emerging economies.
German Exports Surged to Record $141.4 Billion in March, Boosting Growth (Source: Bloomberg)
German exports surged in March to the highest monthly value ever recorded, boosting growth in Europe’s largest economy.
Irish to Avoid ‘Doomsday,’ Central Bank Chief Says as Rescheduling Raised (Source: Bloomberg)
Irish central bank Governor Patrick Honohan said the country will avoid economic “doomsday,” as a government minister and prominent professor suggested the nation should reschedule debts from its as much as 85 billion-euro ($121 billion) bailout.
Irish Consumer Confidence Falls on Rising Bank Bailout Costs, Job Losses (Source: Bloomberg)
Irish consumer confidence fell in April as companies including the state-owned postal service and Allied Irish Banks Plc (ALBK) said they plan to cut jobs and officials said the cost to bail out the nation’s banks rose. The consumer sentiment index declined to 57.9 from 59.5 in March, KBC Ireland and the Economic & Social Research Institute in Dublin said today in an e-mailed statement.
U.K. House Prices Decline 1.4% in April From Previous Month, Halifax Says (Source: Bloomberg)
U.K. house prices fell the most in seven months in April as signs of a fading economic recovery and tighter lending conditions dented property demand, Halifax reported today. Values fell 1.4 percent from March to an average 160,395 pounds ($262,839), Halifax, the mortgage unit of Lloyds Banking Group Plc (LLOY) said in a statement in London today. From a year earlier, prices were down 4.9 percent.
FOREX-Euro bounces from 3-week low; risks further shakeout
LONDON, May 9 (Reuters) - The euro bounced on Monday as Asian and Middle East sovereign investors scooped it up after last week's selloff, although bloated long positions and euro zone debt worries pointed to downside risks.
Technical indicators also suggested the euro could ease, although a rebound in some commodities after their rout last week helped risk appetite and ensured the single currency stayed well above a three-week low hit against the dollar last week.
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