Monday, May 23, 2011

20110523 0943 Global Market Related News.

 DJIA chart reading : side way range bound little upside biased.

Hang Seng chart reading : correction range bound downside biased.

U.S. Stocks Fall a Third Week Amid Greece Debt Concern, Earnings Forecasts(Source: Bloomberg)
U.S. stocks declined for a third straight week, the longest slump since August, as investors grew more concerned that Greece will default on its debt and reduced earnings forecasts undermined confidence in the economy.

Consumer Spending Probably Eased in April: U.S. Economy Preview(Source: Bloomberg)
Consumer spending probably cooled in April as higher food and fuel prices forced Americans to cut back on other items, economists said a government report this week will show.

U.S. Debt Limit Increase Agreement May Take Until August, Ryan Tells NBC(Source: Bloomberg)
A congressional agreement to increase the U.S. debt limit and reduce federal spending may take until August, the Republican chairman of the U.S. House Budget Committee said. “I think there will be a deal. It will probably take a while,” Representative Paul Ryan, a Wisconsin Republican, said on NBC’s “Meet the Press” program. “We have to August.” The U.S. Treasury Department has said Congress must raise the $14.3 trillion debt ceiling by Aug. 2 to avoid the government defaulting on its loans.

U.S. home sales, factory data show recovery weak
WASHINGTON, May 19 (Reuters) - Weak data on U.S. home sales and factory activity showed an economy stuck in low gear although a drop in claims for jobless aid offered hope the labor market's recovery was on track.
Thursday's reports suggested growth was being hampered by a combination of bad weather at home and supply disruptions caused by the March earthquake in Japan, but analysts said the economy should regain momentum by the second half of the year.

Two top Fed officials say easy money still needed
CHICAGO, May 19 (Reuters) - The U.S. labor market is improving, but not at a fast enough pace to require the Federal Reserve to reverse its super-easy money any time soon, two top Fed officials said on Thursday.
The economy has "a considerable way to go" before it meets the Fed's dual mandate of full employment and price stability, New York Federal Reserve Bank President William Dudley said.

Japan’s Deepening Economic Slide May Heighten Pressure for Faster Stimulus(Source: Bloomberg)
Japanese consumers are making deeper cutbacks after the March 11 earthquake than anticipated, heightening the urgency for policy makers to unveil measures to end the nation’s third recession in a decade. Household spending had the largest back-to-back quarterly drop since the global financial crisis, the Cabinet Office said yesterday. The figures contrast with comments by Japan’s central bank, which refrained from adding more stimulus today, that the economy’s main challenge is one of supply chain disruptions caused by the earthquake, tsunami and nuclear crisis.

Japanese Stocks Fall for Third Day on Greek Debt Concern, Euro’s Decline(Source: Bloomberg)
Japanese stocks fell for a third day as Fitch Ratings cut Greece’s credit rating and the euro dropped to a one-week low, reducing the outlook for export earnings.

BOJ holds fire, unfazed by recession and Q1 slump
TOKYO, May 20 (Reuters) - The Bank of Japan kept monetary policy steady on Friday in a sign that a first-quarter economic slump failed to undermine the central bank's confidence growth will pick up around autumn when the wounds from the devastating earthquake begin to heal.
In a surprise move, Deputy Governor Kiyohiko Nishimura did not repeat his proposal to loosen policy further. He suggested expanding the central bank's asset buying scheme last month but was outvoted by the remaining eight board members.

Singapore to Create Most Bank Jobs Next Year(Source: Bloomberg)
Singapore will create more jobs in financial services during the next 12 months than any other city, beating London and New York, said recruiter Astbury Marsden, which advises companies in Europe and Asia. A survey of investment bankers showed 37 percent expect Singapore to add the most jobs, the London-based recruitment firm said in an e-mailed statement. The survey showed 22 percent expect London to create the most jobs, just ahead of Shanghai and Hong Kong, while 1 percent said New York.

BOE’s Dale Signals Gradual Rate Increases Over Two Years in FT Interview(Source: Bloomberg)
Bank of England Chief Economist Spencer Dale said that officials should raise interest rates to bring inflation under control even if Britain’s economic recovery isn’t yet assured. “I’m not at all confident that the recovery has taken hold and will definitely power away,” Dale said in an interview with the Financial Times published today in London. “However, I’m even more worried about what’s going on in terms of inflation.”

Italy Outlook Revised to Negative by S&P, Prompting Vow of Faster Reforms(Source: Bloomberg)
Italy’s Treasury said it will “intensify” structural changes in the economy and push ahead with measures to balance the budget by 2014 after Standard & Poor’s said its debt rating is at risk of a downgrade. “With regard to the economy, the government has initiated and will intensify its reforms; in regard to the budget, a phase of measures are in advanced preparation in order to balance the budget by 2014,” the Treasury said today in an e-mailed statement from Rome. It also said the measures will be submitted to the Parliament for approval by July.

German Economic Growth Will Likely Slow by Mid-Year, Finance Ministry Says(Source: Bloomberg)
The pace of Germany’s economic growth will probably slow by mid-year after jumping 1.5 percent in the first quarter, the Finance Ministry said in its monthly report. The Munich-based Ifo institute’s German business confidence index sank for a second consecutive month in April, reflecting concern over energy prices. At the same time, growing domestic industrial orders suggest that the impact of oil and gas costs may be limited, the ministry said today.

Euro Declines to One-Week Low on Concern European Debt Crisis Will Deepen(Source: Bloomberg)
The euro fell to a one-week low against the dollar as concern over Europe’s sovereign debt crisis deepened, reducing the appeal of the region’s assets.

Pakistan Leaves Key Rate at 14% as Inflation Slows, Budget Cuts Probable(Source: Bloomberg)
Pakistan extended a six-month pause in interest-rate increases as inflation eased and the central bank awaits next month’s budget for signs the government will tighten fiscal policy and help contain prices pressures. The State Bank of Pakistan left the discount rate unchanged at 14 percent, among the highest in the world, according to a central bank statement in Karachi yesterday. The decision was predicted by all 10 economists and researchers surveyed by Bloomberg News.

FOREX-Euro supported above recent lows, dollar weaker
LONDON, May 20 (Reuters) - The euro was steady against the dollar on Friday, holding on to modest gains made in the previous session, with investors' focus slowly shifting to interest rate differentials from the euro zone's debt crisis.
Trading in the euro was influenced by a large $1.4360 digital option for expiry on Monday, with the spot euro/dollar  pair needing to hold below that level for a payout.

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