DJIA chart reading : downside biased.
Hang Seng chart reading : side way range bound.
LONDON, June 1 (Reuters) - World stocks hit a three-week high while the euro rose to its highest in a month on Wednesday in a return of risk appetite prompted by expectations of progress on austerity steps and financial aid for Greece.
"The mood does seem to be lifting over the Greek sovereign debt crisis and this is without doubt delivering some short-term cheer across the euro zone," said Cameron Peacock, market analyst at IG Markets.
Asia Stocks Drop as U.S. Jobs, Manufacturing Reports Disappoint (Source: Bloomberg)
Asian stocks dropped for the first time in three days after U.S. manufacturing expanded at the weakest pace in more than a year and employers hired fewer workers than forecast, fueling concern the global economic recovery will slow.
Asia factories feel the chill as U.S., Europe cool
SINGAPORE, June 1 (Reuters) - Factory growth slowed in major Asian countries, surveys released on Wednesday showed, feeding concerns that the world's strongest economic engines are cooling down as the United States and Europe curtail orders.
China's official purchasing managers' index touched a 9-month low and a private survey hit its lowest mark in 10 months, held back by power shortages and a clamp-down on credit.
Manufacturing, Jobs Pull Back as Costs Climb (Source: Bloomberg)
Manufacturing in the U.S. grew at the slowest pace in a more than a year and employers added fewer jobs than forecast, sending share prices lower on concern a slowdown in the world’s largest economy will extend into the second quarter.
Fed’s Chief Counsel Says Faster Emergency-Loan Disclosure May Hurt Economy (Source: Bloomberg)
The Federal Reserve’s chief attorney said a two-year delay in identifying recipients of emergency loans from the central bank is appropriate and that a shorter lag may harm the financial system and U.S. economy.
Job Cuts Announced in U.S. in May Fell 4.3% From Year Ago, Challenger Says (Source: Bloomberg)
Employers in the U.S. announced fewer job cuts in May than a year earlier, signaling the labor market is improving. Planned firings dropped 4.3 percent to 37,135 last month from May 2010, according to figures released today by Chicago- based Challenger, Gray & Christmas Inc. Government and nonprofit agencies had the most cutbacks.
Manufacturing Growth Weakens from China to Europe as Global Economy Ebbs (Source: Bloomberg)
Manufacturing growth from China to the euro region and the U.S. slowed in May, adding to signs that momentum is weakening in a global economy facing headwinds from rising commodity costs and regional shocks. A purchasing managers’ index for China showed the slowest pace of expansion in nine months, while the equivalent measure for the euro area fell to a seven-month low. The U.S. gauge of factory growth was at its weakest in a year, Russia’s index signaled “near stagnation,” and reports from Poland to Hungary also showed a loss of manufacturing momentum.
QE3 Would Be ‘Excessively Bearish’ for Stocks, Oppenheimer’s Belski Says (Source: Bloomberg)
Stocks would suffer after an initial jump should the Federal Reserve decide to extend economic stimulus beyond the June expiration of its current quantitative easing program, Oppenheimer & Co.’s Brian Belski said. “We become excessively bearish if the Fed goes to QE3,” Belski said in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “We do not want to see QE3,” the New York-based chief investment strategist said. “We think that only prolongs the inevitable when the Fed has to eventually sell these securities that they have been buying.”
China Lending-Binge Hangover Looms in 2013 as Wen Spurs Low-Income Housing (Source: Bloomberg)
China’s plan to rein in property prices with a record homebuilding program may worsen local debt risks even as it proves a boon to companies from domestic cement makers to Chilean copper exporters.
Toyota, Honda Lead Asia Carmakers’ U.S. Decline (Source: Bloomberg)
Toyota Motor Corp. and Honda Motor Co. , the automakers hardest hit by Japan’s record earthquake, led U.S. sales declines among Asia-based car manufacturers in May as supplies of some models ran low.
Japan Stocks Drop Most Since March as U.S. Manufacturing, Job Growth Slow (Source: Bloomberg)
Japanese stocks fell the most since March after U.S. manufacturing growth weakened and employers hired fewer workers than forecast, fueling concern the global economic recovery will slow.
Greek Aid Package Said to Include Incentives Without Triggering Downgrade (Source: Bloomberg)
European officials preparing Greece’s second bailout in two years may offer bondholders incentives to roll over maturing debt without triggering a credit-rating downgrade that would roil Europe’s banking system, two people with knowledge of the talks said.
EU to Urge Investors to Buy New Greek Debt (Source: Bloomberg)
Greece’s risk of default was raised to 50 percent by Moody’s Investors Service as European officials rushed to put together the second bailout plan in two years to stave off renewed financial turmoil in the region. Moody’s downgraded Greece to Caa1 from B1, putting it on a par with Cuba, according to a report published late yesterday. The move came after policy makers considered asking investors to reinvest in new Greek debt when existing bonds mature.
Periphery woes drag on euro zone factories
LONDON, June 1 (Reuters) - Fresh signs of decline among factories in the euro zone's debt-laden periphery tugged sharply on manufacturing growth across the region as a whole in May, a survey measuring business activity showed on Wednesday.
The Markit Eurozone Manufacturing Purchasing Managers' Index slipped to 54.6 from 58.0 in April, revised slightly lower from a preliminary reading of 54.8 but achieving its 20th month above the 50 mark that divides growth from contraction.
Dollar Falls to Lowest in 3 Weeks After Reports of U.S. Economic Slowing (Source: Bloomberg)
The dollar dropped to the lowest in three weeks against the currencies of its major trading partners as reports showed slower-than-forecast jobs growth and reduced factory output, adding to concern the U.S. economy is slowing. The U.S. currency weakened after a private survey showed employment increased by 38,000 last month, the smallest gain since September and a measure of manufacturing output in May declined more than forecast. Forecasters reduced estimates for May job growth before the June 3 Labor Department report. The Swiss franc rose against all of its 16 major counterparts, reaching a record against the dollar and the euro, as stocks and commodities dropped, spurring haven demand.
FOREX-Euro hovers near 4-week high on Greece hope; seen capped
LONDON, June 1 (Reuters) - The euro hit a four-week high at one point on Wednesday, supported by hopes for a fresh aid deal for Greece, but concerns that any deal would only be a temporary fix kept the currency's gains in check.
The dollar slipped to a fresh record low against the Swiss franc, as deteriorating U.S. economic data put pressure on the greenback, contrasting with upbeat readings of the Swiss manufacturing and retail sectors, which boosted the franc.
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