DJIA chart reading : pullback correction downside biased .
Hang Seng chart reading : correction range bound downside biased.
Emerging-Market Stocks Decline to Two-Week Low on Economy, Rates Concerns (Source: Bloomberg)
Emerging-market stocks fell, sending the benchmark index to a two-week low, on growing concern that central banks will increase interest rates even as the global economic expansion slows. The MSCI Emerging Markets Index dropped 0.3 percent to 1,142.24 at 4:30 p.m. New York time, the lowest since May 26. China’s Shanghai Composite Index lost 1.7 percent, while South Korea’s Kospi declined 0.6 percent. Poland’s WIG20 Index dropped 0.4 percent and the zloty fell 0.3 percent versus the dollar. Brazil’s Bovespa stock index gained the most in a week on lower- than-forecast inflation and rising commodities prices.
Asian Stocks Advance as U.S Confidence Rises (Source: Bloomberg)
Asian stocks rose, paring the regional benchmark index’s sixth weekly decline, as U.S. consumer confidence improved, easing concern that the global recovery will falter.
Asia stocks dip, euro pushes higher before ECB
HONG KONG, June 9 (Reuters) - Asian stocks slipped for a sixth straight day on Thursday as investors cut exposure to risky assets on signs the global economy is losing steam, with higher oil prices casting a shadow after OPEC failed to reach a deal to boost output.
"For the first time in a while, I'm hearing clients say they're short or are looking for shorts," said Todd Martin, Asia equity strategist at Societe Generale in Hong Kong
Fed:US default would be dangerous; Fitch may cut rating
NEW YORK, June 8 (Reuters) - A U.S. default would have severe reverberations in global markets, a top Federal Reserve official said just hours after Fitch Ratings warned it could slash U.S. credit ratings if the government misses bond payments.
St. Louis Federal Reserve Bank President James Bullard told Reuters on Wednesday "the U.S. fiscal situation, if not handled correctly, could turn into a global macro shock."
U.S. Trade Gap Narrows as Exports Rise (Source: Bloomberg)
Record exports and lower oil purchases unexpectedly helped narrow the U.S. trade deficit, easing concern that the world’s largest economy is faltering. The gap shrank 6.7 percent to $43.7 billion in April, the lowest since December, Commerce Department figures showed today in Washington. Other reports showed applications for jobless benefits rose last week and consumer confidence improved.
U.S. Household Worth Increases by $943 Billion (Source: Bloomberg)
Household wealth in the U.S. climbed by $943 billion in the first quarter of 2011 as rising share prices outstripped declines in home values. Net worth for households and non-profit groups increased at a 6.8 percent annual pace to $58.1 trillion after rising at a 19 percent pace in the previous three months, the Federal Reserve said today in its flow of funds report from Washington. American households also cut debt for a 12th consecutive quarter.
Consumer Confidence in U.S. Improves on Fuel Prices, Bloomberg Index Shows (Source: Bloomberg)
Consumer confidence rose last week for the third consecutive time as lower gasoline prices lifted Americans’ outlook on their finances.
U.S. Stocks Advance After Record Export Levels Help Reduce Trade Deficit (Source: Bloomberg)
U.S. stocks advanced, snapping a six- day decline, as the trade deficit unexpectedly narrowed amid record exports and consumer confidence improved. The Morgan Stanley Cyclical Index of companies most-tied to economic growth rose 1 percent. Mosaic Co. (MOS) and CF Industries Holdings Inc. (CF) paced gains among fertilizer producers, climbing at least 4.2 percent, after the government reduced its corn-crop estimate. American International Group Inc. (AIG) advanced 2.9 percent as Deutsche Bank AG recommended buying the shares. Brown-Forman Corp. (BF/A) added 2 percent after the maker of Jack Daniel’s whiskey reported earnings that beat analysts’ estimates.
Dollar Falls Against Euro on Speculation U.S. Economic Recovery to Falter (Source: Bloomberg)
The dollar fell from a near one-week high against the euro on speculation the U.S. economic recovery will falter, damping demand for the nation’s assets.
Japan’s Producer Prices Rise for Eighth Month on Climbing Commodity Costs (Source: Bloomberg)
Japan’s producer prices rose for an eight month in May, pushed up by higher energy and raw material costs.
Nikkei 225 Advances for a Fourth Day as U.S Consumer Confidence Improves (Source: Bloomberg)
The Nikkei 225 Stock Average gained for a fourth day as U.S. consumer confidence improved, easing concern that the global recovery will falter.
South Korea Producer-Price Inflation Slows Ahead of Interest-Rate Meeting (Source: Bloomberg)
South Korea’s producer prices rose at the slowest pace in four months, bolstering the case for the nation’s central bank to keep borrowing costs on hold for a third straight month today.
Euro Slides After ECB Inflation, Growth Forecasts Spur Paring of Rate Bets (Source: Bloomberg)
The euro weakened after the European Central Bank signaled a July interest rate increase while damping investor expectations for further moves by reiterating that inflation will fall below its 2 percent limit next year. The shared currency fell for a second day against the dollar as traders closed out earlier bets on future ECB rate increases. New Zealand’s currency climbed to a record after the nation’s central bank said borrowing costs will need to rise in the next two years. The Dollar Index reached the highest in a week on speculation that dollar declines had gone too far.
Greece Is Said to Require $65 Billion More in Emergency Loans From EU, IMF (Source: Bloomberg)
European governments and the International Monetary Fund would lend as much as an extra 45 billion euros ($65 billion) to Greece under an expanded plan to avoid the euro area’s first sovereign default, two people with direct knowledge of the talks said.
Trichet Signals Rate Increase in July With ‘Strong Vigilance’ on Inflation (Source: Bloomberg)
The European Central Bank signaled a July rate increase while damping investor expectations for further moves by reiterating a forecast that inflation will fall below its 2 percent limit next year.
King’s Stance Aided by Fisher’s Caution on Recovery as BOE Holds Key Rate (Source: Bloomberg)
Bank of England Governor Mervyn King’s push to keep interest rates at a record low may have strengthened this month as his top official for financial markets leads a defense against advocates for an increase. Paul Fisher said last week he wants to be sure the economy is over its “soft patch” before the key interest rate is increased and that officials who share his view should be more vocal. The nine-member Monetary Policy Committee, led by King, held the key rate at 0.5 percent today, as forecast by all 55 economists in a Bloomberg News survey.
Brazil Signals More Rate Increases to Come After Raising Selic to 12.25% (Source: Bloomberg)
Brazil’s central bank raised the benchmark lending rate for a fourth straight time and signaled it is prepared to increase borrowing costs further, bucking economists’ projections. Policy makers kept a pledge to raise borrowing costs for a “sufficiently long period” to bring inflation back to target in 2012, in a statement accompanying yesterday’s decision to boost the Selic a quarter-point to 12.25 percent. Analysts had expected the rate to reach 12.50 percent in July and remain there until year-end, a June 3 central bank survey said.
FOREX-Euro gains ahead of ECB meeting, upside capped
LONDON, June 9 (Reuters) - The euro rose broadly on Thursday as investors geared up for hawkish signals from the European Central Bank that would boost the single currency's yield differentials.
But there was a risk of a correction in the euro if the ECB appeared dovish by flagging a slower pace of interest rate hikes later in the year, given a possible global slowdown and the lingering Greek debt crisis.
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