DJIA chart reading : correction range bound little upside biased.
Hang Seng chart reading : correction range bound upside biased.
World's Poor ‘One Shock’ From Crisis as Food Prices Climb, Zoellick Says (Source: Bloomberg)
World Bank President Robert Zoellick said the global economy is “one shock away” from a crisis in food supplies and prices. Zoellick estimated 44 million people have fallen into poverty due to rising food prices in the past year, and a 10 percent increase in the food price index would send 10 million more people into poverty. The United Nations FAO Food Price index jumped 25 percent last year, the second-steepest increase since at least 1991, and surged to a record in February.
G20 eyes anti-crisis plan, mulls recovery risks
WASHINGTON, April 14 (Reuters) - The United States tried to instill confidence on Thursday that the global recovery was not at risk as finance leaders from around the world gathered to advance a plan aimed at preventing future economic crises.
As finance ministers and central bankers from the world's top economies who are aiming to find ways to shrink imbalances in order to foster sustainable growth wrapped up initial meetings on Thursday, the latest news underscored the problems faced.
Asia, Europe data point to mounting inflation risks
BEIJING, April 15 (Reuters) - China and India reported higher-than-expected inflation readings on Friday, giving fresh ammunition to central bankers and investors alike who are worried about mounting price pressures in the global economy.
Consumer prices in the euro zone also picked up more than expected, while figures due later in the day from the United States are expected to show a similar trend, with the inflation rate still moderate but steadily rising, not least because of higher food and energy costs.
Stocks poised for first weekly drop in a month, euro eases
HONG KONG, April 15 (Reuters) - Asian shares were poised for their first weekly loss in a month on Friday as investors took profits after a recent rally, while a pick-up in inflationary pressures in China and elsewhere sent gold racing to yet another record high on Friday. "The weakness in markets this week is expected after the smart comeback we have seen recently, with inflationary concerns again coming to the forefront," said Jan Lambregts, global head of financial markets research at Rabobank.
Gains in U.S. Home Sales, Starts Probably Failed to Make Up Lost Ground (Source: Bloomberg)
March increases in home sales and construction probably failed to make up for the ground lost the prior month, showing the U.S. residential real estate market continues to struggle almost two years into the economic recovery, economists said before reports this week. Purchases of existing homes rose 2.5 percent to a 5 million annual rate after dropping 9.6 percent in February, according to the median forecast of 60 economists surveyed by Bloomberg News. Another report may show builders began work last month on 8.6 percent more houses following a 23 percent plunge.
Let Bush-Era Tax Cuts Expire, Return to Clinton Tax Rates, Greenspan Says (Source: Bloomberg)
Former Federal Reserve Chairman Alan Greenspan said tax cuts put in place by former U.S. President George W. Bush should be allowed to expire and the U.S. should return to tax rates that were in effect under former President Bill Clinton to help address the budget deficit. We should “allow the Bush tax cuts to expire,” Greenspan said on NBC’s “Meet the Press” today, calling the economic crisis “imminent and dire.” We should “put the rates back to where they were during the Clinton administration,” he said. Greenspan said it will be hard to rein in the budget deficit because data show that if a disproportionate amount of the change come from tax increases “it won’t work,” while the impact of cutting back on spending is “almost insignificant.”
Zhou Pledges More Tightening as China Raises Reserve Ratios (Source: Bloomberg)
China increased banks’ reserve requirements to lock up cash and cool inflation, and central bank Governor Zhou Xiaochuan said monetary tightening will continue for “some time.”
China Tells Banks to Boost Reserves as Prices Surge (Source: Bloomberg)
China increased banks’ reserve requirements to lock up cash and limit inflation after economic growth exceeded forecasts and consumer prices rose by the most since 2008. Reserve ratios will rise a half point from April 21, the People’s Bank of China said in a one-sentence statement on its website today. The move, taking the requirement to 20.5 percent for the nation’s biggest lenders, came less than two weeks after the central bank boosted benchmark interest rates.
China Raises Bank Reserve Ratio for Fourth Time in 2011 to Curb Inflation (Source: Bloomberg)
China raised banks’ reserve requirements to lock up cash and limit inflation after economic growth exceeded forecasts and consumer prices rose by the most since 2008. Reserve ratios will increase a half point from April 21, the People’s Bank of China said on its website today. The move, taking the requirement to 20.5 percent for the nation’s biggest lenders, came less than two weeks after the central bank boosted benchmark interest rates.
Japanese Stocks Gain on U.S. Consumer Confidence, Manufacturing (Source: Bloomberg)
Japanese stocks dropped after China raised banks’ reserve requirements, limiting growth in Japan’s biggest overseas market.
N.Z. Dollar Slides Most in Four Weeks After Inflation Report (Source: Bloomberg)
New Zealand’s dollar fell the most in four weeks against the U.S. currency after a government report showed consumer prices rose less last quarter than economists forecast. The so-called kiwi fell versus all its major counterparts as traders cut bets on the amount of interest-rate increases they expect from the Reserve Bank of New Zealand over the next 12 months. Australia’s dollar dropped for the first time in four days against the greenback after China increased banks’ reserve requirements, spurring concern the Asian nation’s government will take more measures to cool growth.
New Zealand’s dollar fell the most in four weeks against the U.S. currency after a government report showed consumer prices rose less last quarter than economists forecast. (Source: Bloomberg)
The so-called kiwi fell versus all its major counterparts as traders cut bets on the amount of interest-rate increases they expect from the Reserve Bank of New Zealand over the next 12 months. Australia’s dollar dropped for the first time in four days against the greenback after China increased banks’ reserve requirements, spurring concern the Asian nation’s government will take more measures to cool growth.
Tighter Monetary Policy Likely as Europe Fights Price Pressure, Weber Says (Source: Bloomberg)
Bundesbank President Axel Weber said today that European price pressures have increased significantly and that tighter monetary policy can be expected. Weber, who is a European Central Bank governing council member, told reporters in Washington that the ECB “countered” inflationary pressure with its interest-rate increase April 7. “We see a significant increase in inflationary pressure,” Weber said. “We’re still of the opinion that the current monetary policy stance at an interest rate level of 125 basis points continues to be supportive of the economy and expansive.” A basis point is 0.01 percentage point.
Euro Falls Versus Dollar, Yen on Concern Sovereign Debt Crisis Worsening (Source: Bloomberg)
The euro weakened against the dollar and the yen on speculation Greece will be unable to avoid a default as the region’s debt crisis shows signs of worsening. The euro dropped to $1.4395 as of 8:54 a.m. in Tokyo from $1.4430 last week in New York. The single currency fell 0.3 percent to 119.64 yen.
FOREX-Euro slides on Ireland, Greece restructuring talk
NEW YORK, April 15 (Reuters) - The euro slid on Friday after Moody's cut Ireland's rating to just above 'junk' status, keeping the currency's debt problems in focus, though it remained underpinned by expectations for further interest rate rises.
Also helping limit losses especially against the U.S. dollar was a widely-held view U.S. interest rates will stay low for some time. Several top Federal Reserve officials have sounded relaxed about inflation and data on Friday supported that.
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