DJIA chart reading : upside biased with possible pullback correction.
Hang Seng chart reading : correction range bound little upside biased.
Asian Stocks Rise as Federal Reserve Renews Pledge on Low Interest Rates (Source: Bloomberg)
Asian stocks rose, sending the regional benchmark index to an almost two-month high, after the U.S. Federal Reserve renewed its pledge to stimulate growth in the world’s biggest economy with low interest rates. The MSCI Asia Pacific Index gained 0.8 percent to 138.97 as of 9:08 a.m. in Tokyo, heading for its highest close since March 4.
Fed Says Pace of U.S. Recovery Is ‘Moderate,’ Bond Buying Will End in June (Source: Bloomberg)
Federal Reserve policy makers said the economy is recovering at a “moderate pace” and a pickup in inflation is likely to be temporary, as they agreed to finish $600 billion of bond purchases on schedule in June.
Bernanke Says Fed to Keep Stimulus, Further Easing Unlikely (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke signaled the Fed will maintain its record monetary stimulus after ending large-scale bond purchases in June, while the need to contain inflation means further easing is unlikely.
UPS Gain in Overnight Deliveries Shows U.S. Economic Confidence (Source: Bloomberg)
Gains in overnight shipments at United Parcel Service Inc. (UPS) and FedEx Corp. (FDX), the two largest package-delivery companies, show consumers and businesses are willing to pay for faster deliveries as the economy expands. Average daily volume for UPS’s next-day air packages “grew at a mid-single digit rate,” overshadowing a drop in ground delivery for the quarter ended March 31 from a year earlier, data from the Atlanta-based company showed yesterday. Such growth in premium overnight air packages is a sign of economic confidence, according to Chief Financial Officer Kurt Kuehn.
U.S. Durable-Goods Orders Rise for Third Month as Equipment Is Replenished (Source: Bloomberg)
Demand for U.S. durable goods rose in March for a third consecutive month, indicating business investment will pick up. Bookings for equipment meant to last at least three years climbed 2.5 percent after a 0.7 percent gain the prior month that reversed a previously reported drop, the Commerce Department said today in Washington. The increase reflected growing demand for machinery, computers and automobiles.
U.S. Stocks Rally as Federal Reserve Signals Low Interest Rates; GE Gains (Source: Bloomberg)
U.S. stocks rose, giving the Standard & Poor’s 500 Index the fifth gain in six days, as the Federal Reserve renewed its pledge to stimulate growth with low rates and said a pickup in inflation is likely temporary. General Electric Co. (GE) added 2.7 percent after saying it wants to boost its dividend. Moody’s Corp. (MCO), whose founder John Moody created credit ratings more than a century ago, climbed 6.7 percent as profit beat estimates by 25 percent. Amazon.com Inc. (AMZN) gained 7.9 percent as the world’s largest online retailer reported sales that topped predictions and Deutsche Bank AG increased its share-price estimate to $215.
U.S. consumers perk up but home prices fall again
NEW YORK, April 26 (Reuters) - U.S. consumers perked up a bit in April as they lowered their forecasts for inflation and worried less about the jobs market, but yet another fall in house prices underscored the challenges facing the recovery.
The overall confidence level, as measured by the Conference Board, an industry group, was still historically low.
Dollar Hits 16-Month Low Versus Euro After Bernanke Comment; Kiwi Declines (Source: Bloomberg)
The dollar fell to a 16-month low against the euro after the Federal Reserve renewed its pledge to keep interest rates near zero to stimulate economic growth.
S&P cuts Japan sovereign rating outlook on quake costs
TOKYO, April 27 (Reuters) - Standard and Poor's on Wednesday threatened to cut Japan's sovereign rating, warning that the huge cost from last month's devastating earthquake will hurt the country's already weak public finances without tax hikes.
The rating agency said costs related to the March 11 earthquake, tsunami, and nuclear power plant disaster will increase Japan's fiscal deficit above prior estimates by a cumulative 3.7 percent of GDP through 2013.
Japan’s Industrial Output Plunges 15.3% as Record Quake Disrupts Supplies (Source: Bloomberg)
Japan’s industrial production plunged after a record earthquake and a tsunami led to shuttered factories, disruptions in supply chains, and a nuclear crisis.
Japan Housing Starts May Post First Decline in 10 Months After Earthquake (Source: Bloomberg)
Japan’s housing starts may post the first decline in 10 months as the nation’s strongest earthquake on March 11 sapped demand, halting the strongest recovery in the real estate market in almost 15 years. Construction companies broke ground on 1.1 percent fewer homes in March from a year earlier, according to the median estimate of 23 economists in a Bloomberg News survey. The Ministry of Land, Infrastructure, Transport and Tourism is scheduled to release the data at 2 p.m. Tokyo time today.
Japan Rating Threat May Force Higher Taxes to Fund Rebuilding (Source: Bloomberg)
The threat of a cut to Japan’s credit rating adds pressure on Prime Minister Naoto Kan to raise taxes as he wrestles with financing earthquake rebuilding without adding to the world’s biggest public debt burden. Standard & Poor’s lowered its outlook yesterday to “negative” on Japan’s AA- local-currency rating, estimating that costs stemming from the earthquake, tsunami and nuclear crisis may boost budget deficits by 3.7 percent of gross domestic product through 2013.
Japanese Stocks Rise on Fed’s Low-Rate Pledge; Advantest Gains (Source: Bloomberg)
Japanese stocks rose for a second day after the U.S. Federal Reserve renewed its pledge to stimulate growth in the world’s biggest economy with low interest rates, and the yen weakened. Advantest Corp., the world’s biggest maker of tools used to test memory chips, climbed 2.6 percent. Kyocera Corp., an electronics maker that gets 18 percent of its revenue in Europe, increased 1.9 percent, after the yen weakened. Komatsu Ltd., the world’s second-largest maker of construction equipment, advanced 2.2 percent after posting a more than threefold jump in fourth- quarter profit.
Indonesia Raises $2.5 Billion From Its First Dollar Bond Sale of This Year (Source: Bloomberg)
Indonesia sold $2.5 billion in dollar-denominated bonds after attracting bids for almost three times that amount, tapping appetite for assets of developing economies poised to grow faster than advanced nations. Southeast Asia’s largest economy sold the 10-year bonds with a 4.875 percent coupon to yield 5.1 percent yesterday. Bids totaled $6.9 billion, or 2.9 times the notes on offer, said a person familiar with the sale, who asked not to be identified because he wasn’t authorized to speak publicly on the matter. The Philippines sold $1.5 billion of 15-year dollar debt in March, attracting $6.5 billion in bids.
German Consumer Confidence to Decline in May Amid Higher Prices, GfK Says (Source: Bloomberg)
German consumer confidence will decline for a second month in May as households grapple with higher food and energy prices, GfK AG said. The Nuremburg-based market research company today forecast that its consumer sentiment index, based on a survey of about 2,000 people, will fall to 5.7 next month from 5.9 in April. Economists predicted a decline to 5.8, according to the median of 26 estimates in a Bloomberg News survey.
U.K. Economy Grew 0.5% in First Quarter as Services Surged Most Since 2006 (Source: Bloomberg)
Britain’s economy rebounded in the first quarter by enough to erase the contraction of the previous three months on the strongest surge in service-industry growth for four years.
Spain Crisis Exemption Poses Renewed Test for Salgado as Local Votes Loom (Source: Bloomberg)
Spain’s resistance to Europe’s debt crisis may be tested next month as local governments taking power after regional elections threaten to repeat Catalonia’s experience when revealing the state of their finances. Finance Minister Elena Salgado, who is spearheading the nation’s efforts to stave off turmoil, agreed to seven deficit- cutting plans with local finance chiefs late yesterday and left six pending until after May 22 elections for 13 regions and 8,000 municipalities. Catalonia, Spain’s largest region, revealed a budget shortfall 60 percent wider than previously acknowledged after its government won an election in November.
Spain Calls Draghi ‘Excellent’ Choice for ECB President, Isolating Merkel (Source: Bloomberg)
Spanish Finance Minister Elena Salgado called Mario Draghi an “excellent” choice as the next European Central Bank president, leaving Germany as the only one of the four biggest euro countries that has yet to endorse the Bank of Italy governor. “Spain’s position is that we think he is an excellent candidate,” Salgado told reporters late yesterday in Madrid hours after her ministry had declined to comment.
Euro zone Feb new orders rise, Jan revised upwards
BRUSSELS, April 27 (Reuters) - Euro zone industrial new orders rose slightly less than expected in February, but January orders were revised upwards, data showed on Wednesday, pointing to stronger industrial production later this year.
The European Union's statistics office Eurostat said industrial new orders in the 17 countries using the euro rose 0.9 percent month-on-month for a 21.3 percent year-on-year gain.
New Zealand Leaves Key Rate at 2.5% on ‘Uncertain’ Outlook; Currency Drops (Source: Bloomberg)
New Zealand’s central bank kept its benchmark interest rate at a record low as the nation recovers from the most devastating earthquake in 80 years, sending the country’s currency lower. “The outlook for the New Zealand economy remains very uncertain,” Governor Alan Bollard said in a statement today in Wellington after leaving the official cash rate at 2.5 percent. “Given the outlook for core inflation and continued economic disruption from the earthquakes, the current level of the cash rate is likely to remain appropriate for some time.”
Mumbai’s Home Sales Drop to Two-Year Low as Unsold Units Climb to a Record (Source: Bloomberg)
Mumbai home sales dropped to a two- year low in the first quarter as record prices and interest rates at the highest since 2008 crimped demand, increasing the number of unsold units to a record, according to Liases Foras Real Estate Rating & Research Pvt. Sales in Mumbai, India’s most expensive property market, fell to 9.09 million square feet in the three months ended March, 14 percent lower than the December quarter and the lowest since the first quarter of 2009, Mumbai-based Pankaj Kapoor, founder of Liases Foras said. Unsold stock climbed to 105 million square feet, while the weighted average price of homes rose to a record 9,234 rupees ($208) a square foot.
FOREX-Dollar sags, seen staying pressured on Fed stance
LONDON, April 27 (Reuters) - The dollar fell against most currencies on Wednesday and looked set to stay under pressure on expectations the U.S. Federal Reserve will reaffirm its ultra-loose monetary policy for the coming months.
Sterling neared 17-month highs against the greenback after an in-line reading of first quarter UK growth, with investors who had sold the pound on anticipation of a softer figure being forced to buy it back.
Dollar at 3-year low before Fed, stocks steady (Source: Reuters)
The U.S. dollar plumbed a three-year low against other major currencies on Wednesday before a Federal Reserve decision which is expected to reaffirm ultra-easy policy, while European shares inched lower. The dollar skidded to 73.493 against a currency basket, driven by interest rate differentials. The index is now down close to 10 percent from its peak in January and many traders expect it eventually to revisit an all-time low of 70.698 hit in 2008.
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