Friday, June 17, 2011

20110617 0945 Global Market Related News.

 DJIA chart reading : correction range bound downside biased.
 Hang Seng chart reading : downside biased with possible pullback correction

Asia Housing Boom Stalls on Tightening (Source: Bloomberg)
From Mumbai to Melbourne, Asia’s property boom is stalling as the world’s highest interest rates and government efforts to curb prices take hold. In China’s biggest cities, growth slowed in April after the government stepped up property measures. In India and Australia, prices are falling after the steepest interest rate increases among major economies. In the financial hubs of Hong Kong and Singapore, price growth is moderating after increased deposit requirements and land releases. In Japan, the worst earthquake on record snuffed out signs of a recovery, while South Korean banks remain weighed by soured property loans.

Asia Stocks Rise on U.S. Job Data (Source: Bloomberg)
Asian stocks rose, driving up the region’s key index for the first day in three after a drop in U.S. jobless claims tempered concern that a recovery in the world’s biggest economy is faltering, and amid speculation Greece may avoid a default on its debt. James Hardie Industries SE (JHX), the largest seller of home siding in the U.S., gained 1.1 percent in Sydney on optimism that a slowdown in the American economy is easing. Toyota Motor Corp., the world’s biggest carmaker, climbed 0.5 percent in Tokyo. DeNA Co., an online social-media-site operator, surged 5.4 percent after raising its profit forecast by 21 percent.

U.S. Stocks Advance Amid Better-Than-Estimated Employment, Housing Reports (Source: Bloomberg)
U.S. stocks rebounded, a day after the Standard & Poor’s 500 Index declined to a three-month low, as better-than-estimated housing starts and jobless claims reports tempered concern about a slowdown in the economy. A gauge of 12 homebuilders in S&P indexes rallied 1.6 percent. Kroger Co. (KR) advanced 4.5 percent after the largest U.S. grocery chain raised its full-year profit forecast. Southern Union Co. (SUG) soared 18 percent as Energy Transfer Equity LP agreed to buy it for $4.2 billion in the largest purchase of a pipeline company this year. Benchmark indexes erased gains earlier today amid concern big banks will face larger capital increases to comply with proposed international regulations.

US consumers battle weaker growth, higher prices
WASHINGTON, June 15 (Reuters) - The U.S. economy is facing a troubling mix of higher prices and weak growth.
Underlying U.S. inflation rose to its highest level in nearly three years in May while a regional factory gauge posted a surprise contraction this month.

Initial Jobless Claims in U.S. Decline More Than Forecast as Firings Abate (Source: Bloomberg)
Fewer Americans than forecast filed applications for unemployment benefits last week, indicating the pickup in firings that began in April is abating. Jobless claims declined by 16,000 to 414,000 in the week ended June 11, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected 420,000 filings, according to the median forecast. The number of people on unemployment benefit rolls and those receiving extended payments decreased.

Consumers’ Expectations Decline to Lowest in Two Years in Bloomberg Index (Source: Bloomberg)
Americans’ views on the economy’s outlook soured in June, showing that unemployment, inflation and the slump in housing are concerning consumers. The Bloomberg gauge of economic expectations dropped to minus 31 this month, the lowest level since March 2009, from minus 16 in May. The Consumer Comfort Index, issued weekly, improved to minus 44 in the period to June 12, the highest level since mid April, from minus 45.9 as fuel prices kept falling.

Consumer Spending Fades in China Economy (Source: Bloomberg)
At the Haiyang Zhuangshi Co. hardware store in Beijing, sales of paint and aluminum window frames are slowing, one sign of a diminished role for consumer spending in China that’s foiling government objectives. “It seems the peak days are gone,” said owner Hu Mengbin, 42, whose daily revenue has dropped to about 3,000 yuan ($463) from as much as 4,000 yuan last year after China stepped up efforts to rein in home prices. “Between 2006 and 2008 when the property market was red hot, we could make quick money.”

India Signals Slower Pace of Rate Rises (Source: Bloomberg)
India’s central bank signaled it may slow the most aggressive monetary tightening among Asia’s major economies as risks to global growth threaten to undermine consumer demand.

Euro Poised for Second Weekly Decline Before EU Leaders Meet on Greece (Source: Bloomberg)
The euro headed for a second weekly decline before European leaders meet to discuss the Greek debt crisis today amid concern the situation is worsening. The single currency was near a one-month low versus the yen as Greek Prime Minister George Papandreou prepares to announce changes to his cabinet today after failing to garner opposition support for austerity measures. The yen rose against most of its major counterparts before a U.S. report forecast to show consumers grew less confident this month as the world’s largest economy slows.

Euro Weakens Third Day Versus Yen on Concern Greece Debt Crisis Worsening (Source: Bloomberg)
The euro fell for a third day against the yen as speculation the Greece debt crisis will worsen damped demand for the region’s currency. The euro dropped to 114.27 yen as of 9:15 a.m. in Tokyo from 114.56 yesterday in New York. The single currency was at $1.4193 from $1.4204.

Greek debt, political turmoil hit stocks, euro
LONDON, June 16 (Reuters) - World stocks hit a three-month low on Thursday, the euro slumped to a one-month trough and top-rated government bonds rose as concerns intensified the lack of a deal on Greek debt might trigger disorderly market moves.
Euro zone officials are struggling to agree on how to involve the private sector in a second Greek bailout without triggering a default that would likely destabilise other euro zone weaklings.

FOREX-Euro slumps vs Swissie, Greece concerns intensify
LONDON, June 16 (Reuters) - The euro hit a lifetime low against the Swiss franc and fell against other major currencies on Thursday as investors rushed into safe-haven assets on concerns that Greece's debt problems were spiralling out of control.
Selling in the euro accelerated, sending it to a three-week low versus the dollar as yields on weaker euro zone bond surged, expanding their spreads against German Bunds to their widest ever.

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