DJIA chart reading : downside biased with possible pullback.
Hang Seng chart reading : side way range bound little downside biased.
Stocks, Commodities Drop on Economy (Source: Bloomberg)
Stocks retreated for a fourth day and oil declined below $100 a barrel amid concern the global economic recovery is faltering. Treasuries pared declines before the U.S. sells $66 billion of notes and bonds this week. The Standard & Poor’s 500 Index slid 1.1 percent to 1,286.17 at 4 p.m. in New York, its lowest level on a closing basis since March 18, and the Stoxx Europe 600 Index declined 0.6 percent. Oil retreated before OPEC ministers meet this week in Vienna. The yen climbed against all 16 major peers, adding 0.2 percent versus the dollar. Ten-year Treasury yields rose two basis points to 3.01 percent after climbing five points earlier.
Cooling U.S. employment casts shadow on recovery
WASHINGTON, June 3 (Reuters) - The U.S. economy may be in for a long period of soft growth after employers hired the fewest number of workers in eight months in May and the unemployment rate rose to 9.1 percent.
Nonfarm payrolls increased 54,000 last month, the Labor Department said on Friday, just over a third of what economists had expected.
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.
U.S. Stocks Decline as Banks Drop Amid Economic-Growth Concerns (Source: Bloomberg)
U.S. stocks fell for a fourth day amid concern economic growth is slowing and the Federal Reserve will boost capital requirements for the nation’s largest banks. Bank of America Corp. and Citigroup Inc. (C) slumped at least 3.9 percent. Wells Fargo & Co. (WFC), the largest U.S. home lender, retreated 2.2 percent after Rochdale Securities LLC’s Richard Bove cut his recommendation on the stock. Lowe’s Cos. declined 2.3 percent as JPMorgan Chase & Co. reduced its recommendation for the second-largest U.S. home-improvement retailer.
China Likely to Avoid Japan Growth-Policy Mistakes, Roach Says: Tom Keene (Source: Bloomberg)
China’s policy makers are positioned to extend the country’s rapid growth and avoid the mistakes made by Japan when its economy slowed in the 1990s, according to Morgan Stanley’s Stephen Roach.
“There are a lot of similarities: the export-led model, the currency suppression, the rapid buildup of foreign currency reserves, the industrial policy run by an elite,” said Roach, non-executive chairman of Morgan Stanley Asia Ltd. in New York, in a radio interview on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt. “The main difference for me is China has a strategy to change the model, Japan did not, and they have the commitment to implement that change and wherewithal to do it, and Japan did not, as well.”
Yen Is Near Month-High as Signs of Slowing Growth Boost Demand for Safety (Source: Bloomberg)
The yen traded within 0.2 percent of a one-month high against the dollar on speculation the global economic recovery is slowing, spurring demand for the Japanese currency as a refuge.
India Plans Biggest Highway Expansion With $12 Billion Projects (Source: Bloomberg)
India will award 550 billion rupees ($12 billion) of highway construction projects this year, its biggest expansion, as the nation aims to remove infrastructure bottlenecks that hinder economic growth. The 7,300 kilometer (4,536 miles)-project includes new expressways as well as widening of existing roads through the year ending March 31, J.N. Singh, finance chief of National Highways Authority of India, said in an interview in New Delhi. The state-run NHAI will pay for the acquisition of land required for the road construction, he said on June 2.
IMF Says U.K. Government Budget Cuts, Bank of England Policies Appropriate (Source: Bloomberg)
U.K. Prime Minister David Cameron ’s government should stick to its deficit-cutting plan as the current economic weakness is “temporary,” the International Monetary Fund said.
U.K. Retail Sales Fell in May on Job, Income Concerns, BRC Says (Source: Bloomberg)
U.K. retail sales fell in May as consumers’ uncertainty about their jobs and incomes increased, the British Retail Consortium said. Sales at stores open at least 12 months, measured by value, fell 2.1 percent from a year earlier, compared with a 5.2 percent increase in April that was spurred by spending over public holidays for Easter and the royal wedding, the London- based BRC said in an e-mailed statement today.
FOREX-Euro near 1-mth high vs dollar on rate outlook
LONDON, June 6 (Reuters) - The euro hovered near a one-month high against the dollar on Monday, boosted by progress over Greek debt financing and a potential widening of interest rate differentials, enticing hedge funds to buy the single currency.
The euro has jumped almost 4 percent in the past three weeks as Greece has inched closer to securing fresh aid to stave off the threat of a default.
Euro hovers near 1-mth high, stocks weaken
LONDON, June 6 (Reuters) - The euro hovered near a one-month high against the dollar boosted by expectations of a European Central Bank rate increase and a fresh Greek bailout deal, while U.S. growth concerns sent stocks tumbling. "We believe that the ECB is set to signal on Thursday that the next rate hike will be in July and this positive interest rate dynamic will continue to help the euro," said Elsa Lignos, currency strategist at RBC Capital Markets.
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