Monday, May 16, 2011

20110516 1005 Global Market Related News.

DJIA chart reading : correction range bound upside biased.
 Hang Seng chart reading : downside biased.  

Asian Stocks Drop on Global Economic Concern Over U.S., Greece (Source: Bloomberg)
Asian stocks dropped on concern Greece’s debt crisis may worsen and after President Barack Obama said failure to raise the U.S. debt ceiling by early August might disrupt the global financial system. BHP Billiton Ltd. (BHP), the world’s largest mining company, fell 1.9 percent in Sydney after gold and metal prices dropped. Rio Tinto Group, the second-biggest by sales, sank 1.5 percent. Toyota Motor Corp. (7203), the world’s No. 1 carmaker, slid 1.5 percent in Tokyo, while Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest publicly traded bank, lost 0.3 percent.

Stocks, euro rise after upbeat growth data
LONDON, May 13 (Reuters) - World stocks rose and the euro rose from a six-week low against the dollar as upbeat German and French growth data and favourable European corporate earnings prompted investors to buy back risky assets. Germany's economy grew by a stronger-than-expected 1.5 percent  in the first quarter while the French economy grew faster than expected in the same period thanks to a strong pick-up in business investment, expanding 1.0 percent from the final quarter of 2010.

U.S. Stocks Decline, S&P 500 Index Records Second Straight Week of Losses (Source: Bloomberg)
U.S. stocks declined, giving the Standard & Poor’s 500 Index a second straight weekly loss, as concern over Europe’s debt crisis deepened and inflation reports spurred speculation global interest rates will rise. Citigroup Inc. (C), the most-traded U.S. stock in 2011, led financial shares in the S&P 500 to the biggest drop among 10 industries, falling 8.1 percent after a 1-for-10 reverse split. Cliffs Natural Resources Inc. (CLF) and Freeport-McMoRan Copper & Gold Inc. (FCX) slumped at least 3.7 percent as data from China increased expectations for higher interest rates. Boston Scientific Corp. (BSX) plunged 11 percent, more than any other S&P 500 company, after saying its chief executive officer will retire.

Geithner Says Default Damage May Be ‘Irrevocable’ (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner said a default arising from failing to raise the debt limit could cause “irrevocable damage” to the economy, risk a “double-dip” recession and increase unemployment. “Default would not only increase borrowing costs for the federal government, but also for families, businesses and local governments -- reducing investment and job creation throughout the economy,” Geithner said in a letter dated yesterday to Senator Michael Bennet, a Colorado Democrat.

Obama Says U.S. Default May ‘Unravel’ Global Finances (Source: Bloomberg)
President Barack Obama said failure to raise the U.S. debt ceiling by early August might disrupt the global financial system and plunge the nation into another recession.

Treasury Yields Approach This Year’s Low Before Report on U.S. Housing (Source: Bloomberg)
Treasury yields approached the lowest level this year before an industry report that economists said will show confidence among homebuilders is at recession levels.

Housing Probably Lagged Behind Factories: U.S. Economy Preview (Source: Bloomberg)
Sales and construction of U.S. homes probably hovered in April around the lows reached during the recession, while factories kept churning out more goods, a reminder that manufacturing remains the engine of the recovery, economists said before reports this week. Sales of existing homes rose 2 percent to a 5.2 million annual pace, according to the median forecast of 55 economists surveyed by Bloomberg News before a May 19 report from the National Association of Realtors. Industrial production grew for a sixth month, figures from the Federal Reserve may show.

US consumers feel pinch of gasoline costs in April
WASHINGTON, May 12 (Reuters) - The U.S. economy struggled to gain momentum early in the second quarter, with retail sales posting their smallest rise in nine months in April and  wholesale prices increasing more than expected.
Other data on Thursday showed new claims for unemployment benefits fell 44,000 last week to 434,000 as one-time factors that had led to a spike in the prior week reversed. But the level of claims still suggested hiring was softening.

China raises bank reserves again to tame inflation
BEIJING, May 12 (Reuters) - China lifted bank reserve requirements by 50 basis points on Thursday, signalling that containing inflation and soaking up excess cash remained its top priority even after signs the economy was slowing down.
The announcement of more tightening came as a surprise to some analysts who had expected the People's Bank of China to tap the monetary brakes more gently after a host of data from industrial output to imports were weaker than expected in April.

Japan’s Machinery Orders Unexpectedly Rose in March (Source: Bloomberg)
Japan’s machinery orders unexpectedly rose even after factory shutdowns, power shortages and supply- chain disruptions caused by a record earthquake and tsunami.

Japan’s Stocks Drop for Third Day on Risk of Greek Debt Restructure, Tepco (Source: Bloomberg)
Japanese stocks fell for a third day on concern Greece may have to restructure its debt, weakening the shared currency and hampering global economic growth.

U.K. House Prices Rise to Three-Year High as Holidays Curb Property Supply (Source: Bloomberg)
U.K. home sellers raised asking prices to the highest since June 2008 this month after public holidays in April limited the supply of property for sale. Average asking prices rose 1.3 percent from the previous month to 238,874 pounds ($388,700), London-based Rightmove Plc, the operator of the U.K.’s biggest property website, said in a report today. From a year ago, prices are up 0.7 percent.

Germany, France propel euro zone; growth gulf widens
BRUSSELS/BERLIN, May 13 (Reuters) - Storming performances by the German and French economies propelled growth in the euro zone well above forecasts in the first quarter while also highlighting the yawning gap between the bloc's strong and weak.
The 17-nation currency area expanded by 0.8 percent in the first three months of the year, data showed on Friday, fuelled by startling 1.5 percent German GDP growth with the French economy only a little off that pace, increasing by 1.0 percent.

Greece to Plead for More Aid as Arrest of IMF’s Strauss-Kahn Clouds Talks (Source: Bloomberg)
Greece today will plead for a boost in its 110 billion-euro ($155 billion) financial lifeline from European governments and the International Monetary Fund, in talks clouded by the arrest of IMF Managing Director Dominique Strauss-Kahn .

IMF Chief Strauss-Kahn Charged With Attempted Rape (Source: Bloomberg)
Dominique Strauss-Kahn , head of the International Monetary Fund and a potential candidate for the French presidency, was charged with attempted rape and a criminal sex act on a New York hotel maid, police said.

Euro Falls Toward 6-Week Low Before Ministers Meet on Greece (Source: Bloomberg)
The euro fell against the dollar and yen for a second day on concern European finance ministers may fail to quell speculation about Greece’s debt restructuring. The 17-nation currency dropped against 14 of its 16 major counterparts before the ministers meet today to discuss further support for Greece. Any extension of the maturities of Greek bonds would have to involve private investors, German Finance Minister Wolfgang Schaeuble said in an interview with ARD television in Berlin yesterday. The yen gained as a report showed Japan’s machine orders unexpectedly rose in March, following the nation’s worst earthquake.

Euro Crisis May Scuttle Eastern Europe Economy as Investors Bet on Region (Source: Bloomberg)
Eastern Europe’s economic recovery may be scuttled by any Greek debt restructuring, which would curb lending by western banks and undermine investor bets that have propelled the region’s stocks, bonds and currencies. While the region has three of this year’s 10 best- performing currencies and five of the 10 equity indexes that rose the most, 76 percent of its banking market is controlled by western European lenders still threatened by the euro’s debt crisis.

FOREX-Euro climbs after French and German GDP data
NEW YORK, May 13 (Reuters) - The euro climbed against the dollar on Friday after strong growth data in Germany and France bolstered expectations a healthy euro zone economy will keep interest rates in the region higher than their U.S. equivalents. A report showing U.S. consumer prices rose as expected in April on higher food and energy prices added to the dollar's weakness, as there was little sign of a broader pick-up in inflation that would trouble the Federal Reserve.
But some analysts said the euro's rebound from recent losses could prove short-lived as concerns about debt problems in peripheral euro zone states may outweigh rate differentials.

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