DJIA chart reading : side way range bound.
Hang Seng chart reading : correction range bound little upside biased.
IMF criticizes response to overheating risks
WASHINGTON, April 18 (Reuters) - The International Monetary Fund on Monday criticized developing countries for not responding strongly enough to the surge of hot money into their markets, saying the result could be a hard economic landing.
After meeting in Washington D.C. on Friday, the IMF said in a note to G20 major economies that huge inflows of speculative capital had sped up economic growth in emerging markets, but also pushed up inflation and the response by developing country governments had "been insufficient to address these rising pressures, portending risks of a hard landing."
Debt woes, China inflation risk overhang markets (Source: Reuters)
Debt woes on both sides of the Atlantic and new signals from China on inflation dangers weighed on markets, though strong earnings saw European shares claw back some of the previous day's losses. Discussions on the U.S. losing its AAA-status have been active for two years, if not longer. S&P's move might have been a jolt, but should not really be a true surprise," said David Watt, senior currency strategist at RBC Dominion Securities.
Longest BRIC Stock Rally Since 1997 Seen Doomed as Interest Rates Increase (Source: Bloomberg)
The longest rally in developing- nation stocks since 1997 may be ending as higher interest rates in Brazil, Russia, India and China curb earnings growth. For the first time in two years, emerging-market analysts are cutting profit estimates more than they’re raising them, consumer stocks are trailing energy producers and shares of smaller companies are losing to larger equities, data compiled by Bloomberg and Morgan Stanley show. The same reversals foreshadowed the end of the emerging-market rally in 2008.
Asian Stocks Rise as U.S. Housing, Earnings Boost Confidence; BHP Advances (Source: Bloomberg)
Asian stocks rose for the first time in four days as U.S. housing starts gained and earnings beat estimates at companies including Johnson & Johnson, signaling the world’s biggest economy is recovering.
Stocks in U.S. Advance as Housing-Starts Data, Earnings Exceed Forecasts (Source: Bloomberg)
U.S. stocks rose, as benchmark indexes rebounded from the worst declines in a month, after housing starts increased and earnings beat estimates at companies from Johnson & Johnson to Steel Dynamics Inc. A gauge of homebuilders in S&P indexes gained 2.2 percent as all of its 12 stocks advanced. Johnson & Johnson, the second- biggest seller of health products, rallied 3.7 percent, the most in the Dow Jones Industrial Average. Steel Dynamics added 5.7 percent as its profit also beat projections. Freeport-McMoRan Copper & Gold Inc. rose 2.2 percent, pacing gains in raw- material producers, as gold touched a record $1,500.50 an ounce.
Housing Starts in U.S. Increased to 549,000 in March, Exceeding Forecasts (Source: Bloomberg)
A gain in March housing starts failed to make up for ground lost the prior month, as U.S. home builders continue to struggle almost two years into the economic recovery.
Geithner Sees Progress Toward Accord to Reduce Record U.S. Budget Deficits (Source: Bloomberg)
Treasury Secretary Timothy F. Geithner said he’s confident U.S. political leaders will bridge their differences and move toward a long-term plan to narrow record budget deficits and reduce the debt.
Payrolls Rise in 38 States, Led by Texas; Unemployment Rate Declines in 34 (Source: Bloomberg)
Payrolls rose in 38 U.S. states in March, indicating improvement in the labor market is broadening. Texas, with a 37,200 increase, and Missouri, at 24,300, showed the biggest gains in employment from February, figures from the Labor Department showed today in Washington. The jobless rate fell in 34 states, with the largest decline in New Mexico, where it fell by 0.6 percentage point to 8.1 percent.
China manufacturing growth stabilises in April -HSBC flash PMI
BEIJING, April 19 (Reuters) - China's factory expansion stabilised in April while inflationary pressures eased a tad as the government presses ahead with tightening steps to tame price rises, a survey showed on Tuesday.
The HSBC flash manufacturing purchasing managers' index (PMI), the earliest available indicator of China's industrial activity, was at 51.8 in April, unchanged from the final reading in March. A figure above 50 points to expansion on the month.
Farmers Get Rich as Wheat Trade Gives Deere Record Profit: Freight Markets (Source: Bloomberg)
The biggest U.S. wheat shipments in a generation mean record income for farmers, the most profit ever for Deere & Co. (DE) and the nation’s lowest jobless rate in North Dakota, the largest grower. The U.S. will control 28 percent of global wheat exports this year, up from 18 percent in 2010, the U.S. Department of Agriculture says. With prices averaging about $8 a bushel this quarter and the next, the most in three years, farms will earn $94.7 billion, according to analysts’ forecasts compiled by Bloomberg and a USDA estimate. North Dakota’s jobless rate was 3.6 percent in March, compared with 8.8 percent nationally.
European Stocks Rebound From Biggest Decline in a Month; LVMH, SKF Advance (Source: Bloomberg)
European stocks rose, rebounding from the biggest drop in a month, as results from LVMH Moet Hennessy Louis Vuitton SA (MC) to SKF AB (SKFB) and Novartis AG (NOVN) beat analysts’ estimates. LVMH, the world’s largest luxury-goods maker, climbed 5 percent after first-quarter sales topped projections. SKF, the biggest maker of ball bearings, rallied 6.4 percent after reporting record quarterly profit. Novartis, Europe’s second- largest drugmaker by sales, advanced the most in four months.
EU Parliament Panel Supports Trichet Over Sarkozy on Tougher Budget Rules (Source: Bloomberg)
A European Parliament panel blunted a French-German push to dilute tougher budget rules, supporting central bank chief Jean-Claude Trichet ’s call for a more credible threat of penalties against big-spending governments.
Euro Rises Versus Yen on Rate Bets Before Germany's Producer-Price Report (Source: Bloomberg)
The euro gained verus the yen before data forecast to show German producer prices rose, fueling speculation the European Central Bank will raise interest rates. The euro advanced to 118.72 yen at 8:37 a.m. in Tokyo from 118.39 in New York yesterday.
Spanish Finance Minister Salgado Pledges ‘Another Quarter of Reforms’ (Source: Bloomberg)
Spanish Finance Minister Elena Salgado pledged to push ahead with “another quarter of reforms” as the government seeks to win the confidence of investors. “We have improved a lot in terms of the perception of the markets in recent months during which we have carried out big reforms,” Salgado said in an interview with Cadena Ser radio station today in Madrid. “This quarter will also be a quarter for reforms.”
Japan’s Exports Fall a More-Than-Expected 2.2% After Quake (Source: Bloomberg)
Japan’s exports fell for the first time in more than a year, underscoring concern that the economy will shrink after the nation’s record earthquake killed thousands, knocked out plants, and triggered a nuclear crisis.
Japan Voices Support for Treasuries After S&P Cuts U.S.'s Credit Outlook (Source: Bloomberg)
Japanese policy makers signaled their commitment to holding Treasuries after Standard & Poor’s lowered its outlook for the U.S.’s AAA credit rating to “negative” for the first time yesterday. “We continue to see U.S. debt as an attractive investment,” Finance Minister Yoshihiko Noda said at a press conference in Tokyo today. Treasuries would still be “extremely good-quality securities” even if the grade was lowered, Economic and Fiscal Policy Minister Kaoru Yosano said.
Japan’s 10-Year Yield Near This Month’s Low After Data Show Exports Fell (Source: Bloomberg)
Japan’s 10-year bond yields were about one basis point from the lowest level in three weeks after a government report showed the nation’s exports fell for the first time in more than a year.
Japan Stocks Rise First Time in Four Days on U.S. Housing Starts (Source: Bloomberg)
Japanese stocks advanced for the first time in four days after U.S. housing starts increased and earnings beat estimates at companies including Johnson & Johnson, signaling the world’s biggest economy is recovering.
Thailand May Raise Interest Rate as Asia Grapples With Inflation, Inflows (Source: Bloomberg)
Thailand may raise borrowing costs for the sixth time in less than a year as Asia strives to damp inflation stoked by surging commodity prices and capital inflows. The Bank of Thailand will raise its benchmark one-day bond repurchase rate by a quarter of a percentage point to 2.75 percent, according to all 20 economists surveyed by Bloomberg News. The decision is due at 2:30 p.m. in Bangkok tomorrow.
PRECIOUS-Gold rises towards $1,500/oz, risk appetite fragile
LONDON, April 19 (Reuters) - Gold rose back towards the previous session's record high near $1,500 an ounce on Tuesday, with appetite for risk fragile after Standard & Poor's cut its U.S. outlook and as euro zone sovereign debt concerns simmered.
Prices rose to a record $1,497.20 an ounce on Monday after the S&P announcement rocked the markets but slipped back quickly after running into strong resistance at higher levels.
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