DJIA chart reading : upside biased with possible pullback correction.
Hang Seng chart reading : side way range bound.
Asia Seeks to Diversify Record Reserves as U.S. Dollar Declines (Source: Bloomberg)
Asian nations are pooling funds to strengthen regional investment, in a step toward diversifying record foreign-exchange holdings as the U.S. dollar declines.
Asian Stocks Drop as Raw Material Producers Decline (Source: Bloomberg)
Asian stocks declined, with a regional benchmark index retreating from a three-year high, as oil and copper futures fell and Australia & New Zealand Banking Group Ltd. posted earnings that missed analysts’ estimates.
U.S. Stocks Retreat as Drop in Commodity Producers Overshadows Bin Laden (Source: Bloomberg)
U.S. stocks retreated, pulling the Standard & Poor’s 500 Index down from the highest level since June 2008, as a slump in commodity producers overshadowed optimism spurred by the death of Osama bin Laden.
Dollar Rebound Delayed to 2012 as Fed Policy Conspires With Slowing Growth (Source: Bloomberg)
Slowing U.S. growth and the widening interest-rate gap between America and the rest of the world may mean no rebound this year for the dollar, the world’s worst- performing major currency in the past three months. The Federal Reserve’s U.S. Trade-Weighted Major Currency Dollar Index fell to a record low last month after policy makers in Australia and Canada, and the European Central Bank raised rates to damp inflation. Even after the declines, strategists from Barclays Plc and Morgan Stanley are cutting their forecasts for the greenback.
Geithner Says Ultimate Deadline on Debt Limit Pushed to August (Source: Bloomberg)
By taking “extraordinary measures,” the U.S. can keep borrowing until Aug. 2 after reaching its $14.29 trillion legal debt limit no later than May 16 unless Congress acts, Treasury Secretary Timothy F. Geithner said.
Fed Says Banks Eased Terms as Loan Demand Rose (Source: Bloomberg)
Banks eased lending terms in the first quarter as they forecast improvement in the U.S. economy and companies sought more loans, according to a Federal Reserve survey.
U.S. Manufacturing Grows at Faster Pace Than Estimated, Leading Recovery (Source: Bloomberg)
Manufacturing expanded faster than forecast in April, driven by gains in exports and inventories that are keeping the industry at the forefront of the U.S. economic expansion. The Institute for Supply Management’s factory index fell to 60.4 last month from 61.2 in March, the Tempe, Arizona-based group said today. Readings greater than 50 signal expansion and the measure has exceeded 60 for four consecutive months, the best performance since 2004.
Dollar Trades Near Five-Week Low Versus Yen on Fed Interest-Rate Outlook (Source: Bloomberg)
The dollar was 0.3 percent from a five-week low against the yen on speculation Federal Reserve officials speaking this week will reiterate their intention to keep interest rates low to stimulate economic growth. The New Zealand dollar extended yesterday’s decline against the yen after a statistics bureau report showed private-sector wages grew at a slower pace than some economists predicted. Canada’s dollar held losses from yesterday on prospects the New Democratic Party will deny Conservatives a majority in a national election.
Japan Passes $49 Billion Disaster Reconstruction Package With More to Come (Source: Bloomberg)
Japan’s parliament passed a 4-trillion yen ($49 billion) budget for rebuilding after the March 11 earthquake, the first in a series of relief packages. The Diet’s upper house unanimously approved the extra spending after the lower house passed the measure on April 30. Prime Minister Naoto Kan has said several extra budgets may be needed to rebuild after the quake, tsunami and nuclear crisis, with government estimates putting the damage at as much as 25 trillion yen. Higher taxes may be needed to limit any increases in bond sales that would swell a debt burden already twice the size of the economy.
India's Manufacturing Grows at Fastest Pace in 5 Months, Increasing Rate Pressure (Source: Bloomberg)
India’s manufacturing grew at the fastest pace in five months and exports climbed to a record, increasing pressure on the central bank to raise interest rates for the ninth time since the start of 2010. The Purchasing Managers’ Index rose to 58 in April from 57.9 in March, HSBC Holdings Plc and Markit Economics said in an e-mail today. A number above 50 indicates expansion. India’s merchandise exports surged 44 percent to a record $29 billion in March from a year earlier, the commerce ministry said in an e- mailed statement today.
India’s Rates May Rise as Central Bank Sees Inflation Threat ‘Amplified’ (Source: Bloomberg)
India’s inflation risks have “amplified” because of higher commodity prices and “policy interventions” are needed, the central bank said, signaling the possibility of increasing borrowing costs today.
Indonesia Inflation Slows, Providing Room to Hold Benchmark Interest Rate (Source: Bloomberg)
Indonesia’s inflation slowed for a third straight month in April as food prices declined during the harvest period, giving the central bank room to refrain from raising interest rates when policy makers meet May 12. Consumer prices in Southeast Asia’s biggest economy rose 6.16 percent last month from a year earlier, after gaining 6.65 percent in March, the Central Bureau of Statistics said in Jakarta today. That’s less than the 6.4 percent median forecast in a Bloomberg News survey of 19 economists.
Europe Manufacturing Growth Gains More Than Estimated as Germany Thrives (Source: Bloomberg)
European manufacturing growth accelerated more than estimated in April, driven by higher output in Germany and France, suggesting the region’s economy is weathering surging energy costs. A gauge of manufacturing in the 17-nation euro area rose to 58 from 57.5 in March, London-based Markit Economics said in an e-mailed report today. That’s above an initial estimate of 57.7 on April 19. A reading above 50 indicates growth.
Interest-Rate Increases Would Exacerbate Debt Challenges, BOE’s King Says (Source: Bloomberg)
Bank of England Governor Mervyn King said high debt levels pose “massive” economic challenges that would be exacerbated by higher interest rates. “The economic consequences of high-level indebtedness now would become more severe if rates were to rise,” King said yesterday at a committee of the European Parliament in Brussels. “It is the main reason why interest rates are so low.”
BOE Won’t Raise Rate Until 2012 as Growth Weakness Persists, Bootle Says (Source: Bloomberg)
The Bank of England won’t raise its interest rate until 2013 as the economic recovery’s momentum stays “pretty weak,” Deloitte & Touche LLP said. “The underlying momentum of the economic recovery looks pretty weak,” Deloitte’s economic adviser Roger Bootle, a former adviser to the U.K. Treasury, said in a report today. “My central forecast is still that rates remain on hold throughout this year and next.”
Yen, Dollar Advance on Concern Bin Laden’s Death Will Lead to Retaliation (Source: Bloomberg)
The yen rose against all its major counterparts after the U.S. and Australia boosted security at their embassies around the world on concern the killing of Osama bin Laden will lead to revenge attacks.
Australian Dollar Is Near Record Before Central Bank Holds Policy Meeting (Source: Bloomberg)
Australia’s dollar traded 0.7 percent from a record high before the Reserve Bank of Australia holds a policy meeting today amid signs that inflation is accelerating. The New Zealand dollar extended yesterday’s decline against the yen as a statistics bureau report showed private-sector wages grew at a slower pace than some economists predicted. Demand for both South Pacific currencies was damped as prices declined for commodities including crude oil and gold.
Dollar up, oil down after news bin Laden killed
LONDON, May 2 (Reuters) - The killing of Al Qaeda leader Osama bin Laden by U.S. forces prompted investors on Monday to strip some of the risk premium underpinning world asset prices, lifting the dollar, boosting stocks and weakening commodities.
"Markets across the globe received a bit of a boost ... as news broke that U.S. forces had killed Osama bin Laden. However, like many euphoric bounces, they are often short-lived, especially given the possibility for reprisal attacks from extremists," said Ben Potter, market strategist at IG Index.
Asian nations are pooling funds to strengthen regional investment, in a step toward diversifying record foreign-exchange holdings as the U.S. dollar declines.
Asian Stocks Drop as Raw Material Producers Decline (Source: Bloomberg)
Asian stocks declined, with a regional benchmark index retreating from a three-year high, as oil and copper futures fell and Australia & New Zealand Banking Group Ltd. posted earnings that missed analysts’ estimates.
U.S. Stocks Retreat as Drop in Commodity Producers Overshadows Bin Laden (Source: Bloomberg)
U.S. stocks retreated, pulling the Standard & Poor’s 500 Index down from the highest level since June 2008, as a slump in commodity producers overshadowed optimism spurred by the death of Osama bin Laden.
Dollar Rebound Delayed to 2012 as Fed Policy Conspires With Slowing Growth (Source: Bloomberg)
Slowing U.S. growth and the widening interest-rate gap between America and the rest of the world may mean no rebound this year for the dollar, the world’s worst- performing major currency in the past three months. The Federal Reserve’s U.S. Trade-Weighted Major Currency Dollar Index fell to a record low last month after policy makers in Australia and Canada, and the European Central Bank raised rates to damp inflation. Even after the declines, strategists from Barclays Plc and Morgan Stanley are cutting their forecasts for the greenback.
Geithner Says Ultimate Deadline on Debt Limit Pushed to August (Source: Bloomberg)
By taking “extraordinary measures,” the U.S. can keep borrowing until Aug. 2 after reaching its $14.29 trillion legal debt limit no later than May 16 unless Congress acts, Treasury Secretary Timothy F. Geithner said.
Fed Says Banks Eased Terms as Loan Demand Rose (Source: Bloomberg)
Banks eased lending terms in the first quarter as they forecast improvement in the U.S. economy and companies sought more loans, according to a Federal Reserve survey.
U.S. Manufacturing Grows at Faster Pace Than Estimated, Leading Recovery (Source: Bloomberg)
Manufacturing expanded faster than forecast in April, driven by gains in exports and inventories that are keeping the industry at the forefront of the U.S. economic expansion. The Institute for Supply Management’s factory index fell to 60.4 last month from 61.2 in March, the Tempe, Arizona-based group said today. Readings greater than 50 signal expansion and the measure has exceeded 60 for four consecutive months, the best performance since 2004.
Dollar Trades Near Five-Week Low Versus Yen on Fed Interest-Rate Outlook (Source: Bloomberg)
The dollar was 0.3 percent from a five-week low against the yen on speculation Federal Reserve officials speaking this week will reiterate their intention to keep interest rates low to stimulate economic growth. The New Zealand dollar extended yesterday’s decline against the yen after a statistics bureau report showed private-sector wages grew at a slower pace than some economists predicted. Canada’s dollar held losses from yesterday on prospects the New Democratic Party will deny Conservatives a majority in a national election.
Japan Passes $49 Billion Disaster Reconstruction Package With More to Come (Source: Bloomberg)
Japan’s parliament passed a 4-trillion yen ($49 billion) budget for rebuilding after the March 11 earthquake, the first in a series of relief packages. The Diet’s upper house unanimously approved the extra spending after the lower house passed the measure on April 30. Prime Minister Naoto Kan has said several extra budgets may be needed to rebuild after the quake, tsunami and nuclear crisis, with government estimates putting the damage at as much as 25 trillion yen. Higher taxes may be needed to limit any increases in bond sales that would swell a debt burden already twice the size of the economy.
India's Manufacturing Grows at Fastest Pace in 5 Months, Increasing Rate Pressure (Source: Bloomberg)
India’s manufacturing grew at the fastest pace in five months and exports climbed to a record, increasing pressure on the central bank to raise interest rates for the ninth time since the start of 2010. The Purchasing Managers’ Index rose to 58 in April from 57.9 in March, HSBC Holdings Plc and Markit Economics said in an e-mail today. A number above 50 indicates expansion. India’s merchandise exports surged 44 percent to a record $29 billion in March from a year earlier, the commerce ministry said in an e- mailed statement today.
India’s Rates May Rise as Central Bank Sees Inflation Threat ‘Amplified’ (Source: Bloomberg)
India’s inflation risks have “amplified” because of higher commodity prices and “policy interventions” are needed, the central bank said, signaling the possibility of increasing borrowing costs today.
Indonesia Inflation Slows, Providing Room to Hold Benchmark Interest Rate (Source: Bloomberg)
Indonesia’s inflation slowed for a third straight month in April as food prices declined during the harvest period, giving the central bank room to refrain from raising interest rates when policy makers meet May 12. Consumer prices in Southeast Asia’s biggest economy rose 6.16 percent last month from a year earlier, after gaining 6.65 percent in March, the Central Bureau of Statistics said in Jakarta today. That’s less than the 6.4 percent median forecast in a Bloomberg News survey of 19 economists.
Europe Manufacturing Growth Gains More Than Estimated as Germany Thrives (Source: Bloomberg)
European manufacturing growth accelerated more than estimated in April, driven by higher output in Germany and France, suggesting the region’s economy is weathering surging energy costs. A gauge of manufacturing in the 17-nation euro area rose to 58 from 57.5 in March, London-based Markit Economics said in an e-mailed report today. That’s above an initial estimate of 57.7 on April 19. A reading above 50 indicates growth.
Interest-Rate Increases Would Exacerbate Debt Challenges, BOE’s King Says (Source: Bloomberg)
Bank of England Governor Mervyn King said high debt levels pose “massive” economic challenges that would be exacerbated by higher interest rates. “The economic consequences of high-level indebtedness now would become more severe if rates were to rise,” King said yesterday at a committee of the European Parliament in Brussels. “It is the main reason why interest rates are so low.”
BOE Won’t Raise Rate Until 2012 as Growth Weakness Persists, Bootle Says (Source: Bloomberg)
The Bank of England won’t raise its interest rate until 2013 as the economic recovery’s momentum stays “pretty weak,” Deloitte & Touche LLP said. “The underlying momentum of the economic recovery looks pretty weak,” Deloitte’s economic adviser Roger Bootle, a former adviser to the U.K. Treasury, said in a report today. “My central forecast is still that rates remain on hold throughout this year and next.”
Yen, Dollar Advance on Concern Bin Laden’s Death Will Lead to Retaliation (Source: Bloomberg)
The yen rose against all its major counterparts after the U.S. and Australia boosted security at their embassies around the world on concern the killing of Osama bin Laden will lead to revenge attacks.
Australian Dollar Is Near Record Before Central Bank Holds Policy Meeting (Source: Bloomberg)
Australia’s dollar traded 0.7 percent from a record high before the Reserve Bank of Australia holds a policy meeting today amid signs that inflation is accelerating. The New Zealand dollar extended yesterday’s decline against the yen as a statistics bureau report showed private-sector wages grew at a slower pace than some economists predicted. Demand for both South Pacific currencies was damped as prices declined for commodities including crude oil and gold.
Dollar up, oil down after news bin Laden killed
LONDON, May 2 (Reuters) - The killing of Al Qaeda leader Osama bin Laden by U.S. forces prompted investors on Monday to strip some of the risk premium underpinning world asset prices, lifting the dollar, boosting stocks and weakening commodities.
"Markets across the globe received a bit of a boost ... as news broke that U.S. forces had killed Osama bin Laden. However, like many euphoric bounces, they are often short-lived, especially given the possibility for reprisal attacks from extremists," said Ben Potter, market strategist at IG Index.
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