DJIA chart reading : correction range bound upside biased.
Hang Seng chart reading : correction range bound upside biased.
Inflation, oil prices create new challenges - IMF
WASHINGTON, April 11 (Reuters) - Soaring oil prices and inflation in emerging economies pose new risks to global recovery but are not yet strong enough to derail it, the International Monetary Fund said on Monday.
The global lender's latest health-check of world economic prospects marked a departure from recent years when its focus was on the financial crisis and recession in rich nations.
Asia Deficits Swell as Soaring Oil Makes Leaders Delay Subsidy Reductions (Source: Bloomberg)
Surging oil and food costs may swell budget deficits in Asia as governments spend on subsidies to keep consumer prices low and avoid inflation protests that helped topple regimes in the Middle East this year.
Asian Stocks Rise as Japan’s Exporters Gain; Commodity Stocks Drop on Oil (Source: Bloomberg)
Asian stocks rose as Japanese exporters gained, offsetting declines by commodity producers on lower oil and metal prices.
U.S. Trade Deficit Narrows Less Than Forecast on Soaring Commodity Prices (Source: Bloomberg)
The U.S. trade deficit narrowed less than forecast in February, indicating soaring commodity prices hurt the world’s largest economy at the start of the year.
Law Enforcement, Environment, Rail Set for Funding Cut in U.S. Budget Deal (Source: Bloomberg)
The U.S. Environmental Protection Agency, high-speed rail and law enforcement are among the programs targeted for budget cuts as part of a long-fought deal to avert a government shutdown.
Treasuries Decline Before $21 Billion Note Auction, Retail-Sales Report (Source: Bloomberg)
Treasuries declined as the U.S. prepared to sell $21 billion of 10-year notes today in the second of three debt auctions this week.
U.K. Inflation Unexpectedly Slows in March for First Time in Eight Months (Source: Bloomberg)
U.K. inflation unexpectedly slowed in March for the first time in eight months as discounting at supermarkets prompted food prices to plunge.
Stark Says ECB Intends to Raise Its Interest Rates at ‘Appropriate’ Pace (Source: Bloomberg)
European Central Bank Executive Board member Juergen Stark said the bank will raise interest rates and withdraw other emergency measures at an appropriate pace. “The ECB will adjust its policy interest rates and its provision of liquidity at a pace and to a degree commensurate with the evolution of risks to price stability and as appropriate to maintain an orderly and functional monetary policy transmission,” Stark said in a speech in Hong Kong today. “As with the phasing-in of non-standard measures, there are no pre-defined steps between phasing them out and exiting from very low policy interest rates.”
China’s Local Currency Credit Rating May Be Cut by Fitch on Private Debt (Source: Bloomberg)
China’s credit rating for local lenders at Fitch Ratings may be cut on concern that increasing corporate and household debt is a risk to government finances. The outlook for China’s long-term local currency issuer rating was lowered to “negative” from “stable,” Fitch said in a statement yesterday. The rating is currently AA-, it said.
China banks to provide Minmetals $4.6 bln in financing
HONG KONG, April 12 (Reuters) - Minmetal Resources Ltd , a unit of China's biggest metals trading company, said on Tuesday that three Chinese banks will provide at least $4.6 billion in corporate debt financing for its bid to buy Equinox Minerals Ltd .
A majority of the loan would have a tenure in excess of six years and would be partly secured by its assets, the company said in a statement posted to the Hong Kong stock exchange.
Japan supply uncertainty looms for Toyota
DETROIT, April 11 (Reuters) - Toyota Motor Corp on Monday warned that the uncertain supply of parts from Japan could threaten its output of vehicles through July, the latest sign of trouble for the global auto industry stemming from the massive Japanese earthquake a month ago.
Ford Motor Co , meanwhile, said it would slow or shut down production in Asia in the last week of April and into May at its factories and joint ventures in the region, a step it said it did not expect would cut into second-quarter earnings.
Japan Sees Greater Hit to Economy Than First Estimated on Nuclear Crisis (Source: Bloomberg)
Japan’s Economic and Fiscal Policy Minister Kaoru Yosano said the March 11 earthquake may result in a larger hit to the economy than previously seen, indicating a greater appetite for stimulus one month after the disaster.
Japanese Bonds Rise as Nuclear Crisis Increases Demand for Safety of Debt (Source: Bloomberg)
Japan’s 10-year bonds advanced for the first time in six days as the nation’s nuclear crisis bolstered demand for the safety of government debt.
Japan Stocks Rise for First Time in Three Days; Carmakers Gain on Rating (Source: Bloomberg)
Japanese stocks rose for the first time in three days led by carmakers after Nomura Holdings Inc. called the shares “oversold.”
Yen Weakens Before Euro Industrial Production, U.S. Retail Sales Reports (Source: Bloomberg)
The yen fell against all its major counterparts before reports that economists said will show European industrial production and U.S. retail sales increased, damping demand for the safety of Japan’s currency.
Bank of Korea Says Inflation May Accelerate Faster Than Earlier Forecast (Source: Bloomberg)
South Korea’s inflation will probably accelerate more than previously forecast while economic growth stays in line with expectations, the Bank of Korea said.
Singapore Growth Probably Quickened; Central Bank May Tighten (Source: Bloomberg)
Singapore’s economy probably grew at the fastest pace in three quarters, stoking inflation and adding pressure for faster currency appreciation.
FOREX-Dollar edges higher vs euro but bearish tone remains
NEW YORK, April 11 (Reuters) - The dollar paused from last week's sharp decline against the euro on Monday, but a strong bearish stance toward the greenback is seen persisting ahead of next month's U.S. debt limit debate and on global central bank monetary policy disparities.
The dollar found support after a U.S. government shutdown was averted on Friday, and the dollar's rise was widely viewed as overdue after its sell-off versus the euro for the last four months. So far in April the dollar is still down more than 2 percent.
Risk shunned as oil extends drop, yen bounces
SINGAPORE, April 12 (Reuters) - A decline in crude oil prices on Tuesday from a 32-month high that could extend in the near term triggered a bout of profit taking in risky assets, causing investors to sell equities and slash their bets against the yen and U.S. dollar.
"Open interest has been building up since the start of the new quarter in April, reflecting fresh inflows of speculative money into the oil market," said an energy analyst at a leading Japanese trading house who declined to be named.
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