DJIA chart reading : pullback correction upside biased.
Hang Seng chart reading : side way range bound little downside biased.
Asian Stocks Decline as Raw Material Producers, Australian Banks Retreat (Source: Bloomberg)
Asian stocks declined, with a regional benchmark index falling for a second day, as raw material producers fell and Westpac Banking Corp. posted earnings that missed analysts’ estimates. BHP Billiton Ltd. (BHP), the world’s biggest mining company and Australia’s second-largest oil and gas producer, slipped 0.7 percent in Sydney as oil and copper futures declined. Woodside Petroleum Ltd. fell 1.7 percent. Westpac Banking Corp., Australia’s No. 2 lender, decreased 1.6 percent after posting first-half earnings. Smaller rival Australia & New Zealand Banking Group Ltd. (ANZ), which reported earnings that missed estimates yesterday, extended its decline for a second day.
IMF Raises Latin America Growth Forecast to 4.7% Amid Overheating Signs (Source: Bloomberg)
Economies in Latin American are showing signs of overheating as growth this year is poised to be faster than previously estimated, the International Monetary Fund said in a report today. Driven by high commodity prices and abundant global liquidity, Latin America and Caribbean economies should expand 4.7 percent this year, up from the 4 percent forecast made in the IMF’s previous regional outlook in October. Peru and Argentina will lead South America’s expansion at 7.5 percent and 6 percent respectively as Brazil, the region’s biggest economy, climbs 4.5 percent. Mexico will grow 4.6 percent, the IMF said.
Orders Placed With U.S. Factories Increased More Than Forecast in March (Source: Bloomberg)
Orders placed with U.S. factories rose more than forecast in March on increasing demand for machinery and computers that points to further gains in business spending. Bookings for manufacturers’ goods climbed 3 percent, a fifth consecutive increase, after a 0.7 percent February advance, the Commerce Department said today in Washington. The report also revised up estimates for capital equipment bookings issued last week. Exports to emerging economies like China, investing in new equipment and the need to increase stockpiles are driving the factory rebound at the forefront of the recovery. Federal Reserve policy makers last week said the expansion was “proceeding at a moderate pace,” boosted by stronger business spending.
U.S. factories hold up despite slower growth
NEW YORK/WASHINGTON, May 2 (Reuters) - Business at U.S. manufacturers grew a bit more slowly for a second straight month in April but their costs rose to the highest level in nearly three years, an industry report showed on Monday.
The economy showed other signs of crawling back to health, including a pickup in spending on construction, albeit too slowly to generate brisk employment gains.
Dollar Index Holds Gains Before U.S. Reports on Jobs, Service Industries (Source: Bloomberg)
The Dollar Index held onto yesterday’s gains on speculation U.S. reports will show employers added jobs for a 15th month and growth in service industries quickened, underpinning the appeal of American assets. The yen weakened versus all of its 16 major counterparts as signs that the U.S. recovery remains on track sapped demand for Japan’s currency as a refuge. The pound traded 0.2 percent from a one-week low versus the dollar before a U.K. report that may show a construction index fell for a third month, supporting the case for the Bank of England to keep interest rates low.
Dollar clambers off 33-month low, stocks fall
LONDON, May 3 (Reuters) - World stocks fell on Tuesday as investors pocketed gains after a five-session winning run, while the dollar edged off a 33-month low, sending crude and copper prices lower.
Equities have been buoyed by robust company earnings in the United States and Dollar clambers off 33-month low, stocks fall commodity prices, driven by ultra-loose U.S. monetary policy and turmoil in oil-producing Middle East and North Africa, could threaten company margins.
China’s Central Bank Signals Tightening May Continue Even as Growth Cools (Source: Bloomberg)
China’s central bank said controlling inflation is its top priority, even after a manufacturing survey indicated that growth may slow in the second-biggest economy. “Stabilizing prices and managing inflation expectations are critical,” the People’s Bank of China said in a first- quarter monetary policy report published on its website today. Bank reserve requirements have no “absolute ceiling,” the report said, restating an April 16 comment from Governor Zhou Xiaochuan.
China manufacturing growth slows in April, hit by tightening
BEIJING, May 1 (Reuters) - China's manufacturing growth slowed in April, a survey showed on Sunday, suggesting that the government's tightening efforts have weighed on the world's second-largest economy more heavily than expected.
The official purchasing managers' index for China fell to 52.9 in April from 53.4 in March, well shy of market forecasts for an increase to 54.0.
China slashes 2011 rail investment plan -media
BEIJING, April 29 (Reuters) - China's railway ministry has decided to cut its planned investment for 2011 to 400 billion yuan from the original 700 billion yuan after its chief was ousted on suspicion of wrongdoing, the Economic Observer, a local newspaper, reported on its website on Friday.
The sharp reduction in railway spending will weigh on China's overall level of investment, the single most important growth engine for the world's second-largest economy.
Subbarao Tweaks India’s Rate-Rise Playbook as Inflation Undermines Bonds (Source: Bloomberg)
The Reserve Bank of India’s decision to double the magnitude of interest-rate increases signals it is ready to step up the battle against inflation even at the risk of damping the nation’s economic growth.
Pound Weakens to Beyond 90 Pence Per Euro For First Time Since March 2010 (Source: Bloomberg)
The pound slumped to weaker than 90 pence per euro for the first time in more than a year. Britain’s currency lost as much as 1.1 percent to 90.016 pence per euro, the first breach of the 90 pence level since March 30, 2010, before trading at 89.9993 as of 3:27 p.m. in London. The pound also fell 1 percent to $1.6482.
Portugal Agrees on Aid Plan With Wider Deficit Targets (Source: Bloomberg)
Portugal reached an agreement with officials preparing its European Union-led bailout that will provide as much as 78 billion euros ($116 billion) in aid and allow more time to reduce the country’s budget deficit.
Russian Inflation Probably Accelerated to Fastest Pace Since October 2009 (Source: Bloomberg)
Russian inflation probably accelerated in April to the fastest pace since October 2009 as higher food prices and gasoline shortages fanned cost pressures.
Greece Should Shun Debt Restructuring, Premier’s Adviser Says (Source: Bloomberg)
Greece doesn’t need to restructure its debt for now and should only consider an extension of its international loans, said Herakles Polemarchakis , an economic adviser to Greek Prime Minister George Papandreou .
FOREX-US dollar index hits 3-yr low as rates outlook weighs
NEW YORK, May 2 (Reuters) - The U.S. dollar declined to a three-year trough against major currencies on Monday and will likely remain under pressure as investors seek higher rates offered abroad and shun the lower yielding greenback.
The Federal Reserve is keeping monetary policy loose while other central banks, such as the European Central Bank and the Bank of England, have already raised rates or are on the verge of doing so. Australia and Canada are expected to tighten lending conditions in the months ahead.
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