DJIA chart reading : downside biased with possible pullback.
Hang Seng chart reading : side way range bound little downside biased.
Tread water before US job data; bond outlook brightens
HONG KONG, June 3 (Reuters) - Stocks steadied, bond yields dipped and the euro rose to a one-month high versus the dollar on Friday as investors braced for a key U.S. jobs report that could feed debate over whether the economy is headed for a protracted slowdown.
"Tighter monetary policy is still likely, because policy rates are still low relative to current and average historical underlying inflation rates, but if headline inflation rates stabilize, the amount of tightening that we are likely to see in the coming months is mostly priced into bonds," DBS said.
Dow Average Has Its Longest Weekly Slump Since 2004 on Employment Report (Source: Bloomberg)
U.S. stocks fell this week, sending the Dow Jones Industrial Average to its longest streak of losses since 2004, after worse-than-estimated reports on jobs and manufacturing fueled concern earnings growth will slow. All 10 Standard & Poor’s 500 Index groups dropped, with declines exceeding 1.3 percent. Newell Rubbermaid Inc. (NWL) sank 15 percent, leading declines in the Standard & Poor’s 500 Index, after cutting its profit forecast. J.C. Penney Co. and Stanley Black & Decker Inc. (SWK) slumped more than 6 percent as investors sold companies tied to economic growth. General Motors Co. (GM) and Ford Motor Co. (F) decreased at least 4 percent after sales growth missed projections.
Slowing U.S. Growth Prompts Optimists to Question Durability of Recovery (Source: Bloomberg)
A string of disappointing economic data capped by last week’s jobs report is prompting even some of the more optimistic economists to question the durability of the U.S. recovery.
High US jobless claims add to slowdown concerns
WASHINGTON, June 2 (Reuters) - The number of Americans signing up for jobless benefits fell only slightly last week, doing little to calm growing fears of a pullback in the U.S. economy's recovery.
Initial claims for state jobless benefits slipped 6,000 to 422,000, the Labor Department said on Thursday, which was higher than the 415,000 claims expected by economists.
Moody's sounds alarm over US debt limit, deficits
NEW YORK/WASHINGTON, June 2 (Reuters) - Ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the U.S. debt limit.
Treasury Secretary Timothy Geithner, seeking to convince Congress to increase his borrowing authority and prevent a government default, went to Capitol Hill to press his case in a 45-minute meeting with first-term lawmakers.
Trade Gap in U.S. Probably Widened in April as Imported Oil Prices Climbed (Source: Bloomberg)
The U.S. trade deficit probably widened in April to a 10-month high, reflecting higher crude oil costs that have since retreated, economists said before a report this week.
Obama Is Focusing on Tax Incentives, Subsidies to Spur Jobs, Goolsbee Says (Source: Bloomberg)
Austan Goolsbee, President Barack Obama’s chief economist, said the government is seeking to help private businesses spur job growth through tax incentives and investment subsidies. “We want to leverage the private sector money,” Goolsbee, chairman of the Council of Economic Advisers, said in an interview today on CNN’s “State of the Union” program. “Corporations have become profitable again,” he said. “What we need to do now is get the private sector stood up.”
Jobless Rate Unexpectedly Rises in Sign of Extended U.S. Economy Slowdow (Source: Bloomberg)
The unemployment rate in the U.S. unexpectedly climbed to 9.1 percent in May and payrolls grew at the slowest pace in eight months, showing employers are losing confidence as the economy slows. The jobless rate increased to the highest level this year from 9 percent a month earlier, Labor Department figures showed yesterday in Washington. Employers added a less-than-projected 54,000 jobs last month, after a revised 232,000 gain in April that was smaller than initially estimated. The median forecast in a Bloomberg News survey called for payrolls to rise 165,000.
Japan Stocks Decline for Third Day; Tepco Plunges (Source: Bloomberg)
Japanese stocks declined for a third day as slowing U.S. job growth fueled concern the global economy is weakening.
Portugal’s Social Democrats Defeat Socrates, Hand Coelho Coalition Chance (Source: Bloomberg)
Portugal’s opposition Social Democrats ousted the ruling Socialists in elections, putting Pedro Passos Coelho in charge of enforcing austerity measures mandated by a 78 billion-euro ($114 billion) bailout. Coelho, who unseated Prime Minister Jose Socrates, said he would seek to forge a governing majority with the third-place People’s Party to enact budget cuts that risk worsening an economic slump and 12.4 percent unemployment rate. With 99 percent of districts reporting, the two parties won a combined 129 seats in the 230-member parliament.
Euro Rises to Month High Versus Dollar on Optimism EU Will Support Greece (Source: Bloomberg)
The euro rose to a month high versus the dollar on prospects officials from the European Union will reiterate their intention to prepare a new aid package for Greece, easing concern over the region’s debt crisis.
U.K. Factory Production Strengthens as Export Demand Picks Up, EEF Says (Source: Bloomberg)
U.K. factory production strengthened in the second quarter as companies benefited from increasing export orders, the Engineering Employers Federation said. A measure of output rose to 28 from 25 in the first three months of the year, the EEF, a lobby for manufacturers, and BDO Stoy Hayward LLP said in a report released today in London. A gauge of new export orders increased to 28 from 25.
Barclays Capital Cuts Pound Forecasts on Central Bank Interest-Rate View (Source: Bloomberg)
Barclays Capital cut its six-month and one-year forecasts for the pound, citing the outlook for Bank of England interest rates after data showed weaker than expected U.K. services growth last month. Barclays Capital cut its six-month forecast to $1.74 from $1.76 and 85 pence per euro from 84 pence per euro. The one-year forecasts were reduced to $1.76 from $1.80 and 82 pence per euro from 80 pence, Paul Robinson, London-based head of European currency strategy at the investment-banking unit of Barclays Plc, wrote in an e-mailed note today.
Australia’s La Nina-Triggered Flood Bill to Reach $12 Billion, Swan Says (Source: Bloomberg)
Australia’s bill from floods that devastated the nation’s northeast earlier this year climbed 33 percent to A$12 billion ($13 billion), with resources and agriculture the hardest hit, the government said. “Lost commodity production is likely to be around A$9 billion and damage to crops more than A$2 billion,” Treasurer Wayne Swan said in an e-mailed statement yesterday. “We’ve seen economic data that clearly reflects the destruction.”
FOREX-Euro holds near 1-mth high vs dlr before U.S. jobs
LONDON, June 3 (Reuters) - The euro hovered near a one-month high against the dollar on Friday as investors anticipated weak U.S. jobs data that could signal a protracted soft patch in the world's biggest economy and weigh further on the U.S. currency.
However, traders said the euro could struggle to make gains beyond the one-month high of $1.4518 hit in Asian trade, citing selling interest around that level, more ahead of an options barrier at $1.4550 and further offers around $1.4565-70.
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