DJIA chart reading : pullback correction upside biased.
Hang Seng chart reading : downside biased with possible pullback correction.
Asian Stocks Drop on U.S. Economy, Raw Material Producers Fall (Source: Bloomberg)
Asian stocks declined, sending the regional benchmark index to its biggest weekly drop since March, as rising jobless claims and declining consumer confidence in the U.S. added to signs the recovery in world’s biggest economy is weakening.
Asia Inflation Fight Spreads on Philippines, Malaysia Rate Moves (Source: Bloomberg)
The Philippines and Malaysia joined India and Vietnam in raising interest rates this week as nations in a region that led the global economic recovery intensified their fight against inflation.
Consumer Confidence Falls as Fuel Costs Increase (Source: Bloomberg)
Consumer confidence dropped last week to the lowest level in more than a month as rising fuel costs squeezed American household budgets.
Fed Presidents Signal Employment Growth Too Slow to Remove Record Stimulus (Source: Bloomberg)
Two Federal Reserve regional bank presidents indicated that the central bank won’t remove record stimulus soon, saying the Fed is missing its goal for full employment and inflation isn’t a long-term risk. Eric Rosengren, president of the Federal Reserve Bank of Boston, and San Francisco’s John C. Williams followed the lead taken by Fed Chairman Ben S. Bernanke, who signaled last week that policy makers will keep stimulus in place after ending large-scale bond purchases in June.
Chief Executives in U.S. Forecast Gains in Sales, Employment, Survey Says (Source: Bloomberg)
Confidence among U.S. chief executive officers improved at the start of the second quarter as more business leaders forecast pickups in demand, employment and spending on equipment, a survey showed. The Young Presidents’ Organization gauge of sentiment rose to 64.1 in April, the highest since the survey began in the second quarter of 2009, from 63.5 in January, according to the Dallas-based group. A reading greater than 50 shows the executives’ outlook was more positive than negative.
Jobless Claims in U.S. Unexpectedly Jump on One-Time Events (Source: Bloomberg)
The number of claims for U.S. unemployment benefits unexpectedly rose last week, pushed up by auto-plant shutdowns and other unusual events that seasonal variations failed to take into account, the Labor Department said. Applications for jobless benefits jumped by 43,000 to 474,000 in the week ended April 30, the most since August, Labor Department figures showed today. A spring break holiday in New York, a new emergency benefits program in Oregon and auto shutdowns caused by the disaster in Japan were the main reasons for the surge, a Labor Department spokesman said as the data was released to the press.
U.S. Productivity Slowed in First Quarter, Labor Costs Rose (Source: Bloomberg)
The productivity of U.S. workers slowed in the first quarter and labor costs rose as a growing economy prompted companies to boost employment. The measure of employee output per hour increased at a 1.6 percent annual rate, exceeding the median forecast of economists surveyed by Bloomberg News, after a 2.9 percent gain in the prior three months, figures from the Labor Department showed today in Washington. Expenses per employee climbed at a 1 percent rate after dropping 1 percent the prior quarter.
Japan Stocks Decline First Day in Four on U.S. Economy, Crude Oil Prices (Source: Bloomberg)
Japanese stocks fell for the first time in four trading days as slower growth in U.S. service industries, rising jobless claims and the biggest plunge in commodity prices in almost two years fueled concern the global economy is stalling.
Japan’s 10-Year Government Bonds Rise as Falling Stocks Spur Safety Demand (Source: Bloomberg)
Japan’s government bonds rose as falling stocks spurred demand for safer assets. Ten-year yields dropped 3.5 basis points to 1.165 percent as of 9:15 a.m. in Tokyo.
Yen Falls From Seven-Week High as Japan May Intervene: Dollar Weak on Jobs (Source: Bloomberg)
The yen fell from a seven-week high against the dollar on speculation Japan’s government will intervene to curb recent gains that may hurt the overseas competitiveness of the nation’s exporters.
Investors on alert for 'strong vigilance' at ECB
LONDON, May 5 (Reuters) - The euro kept close to a 17-month high against the dollar and stock markets hugged recent levels on Thursday as investors waited for the European Central Bank to give hints on future interest rate rises. "A possible Greek debt restructure, a Portuguese bailout, a sharp decline in Spanish house prices, a Finnish electoral revolt against bailouts -- all have been essentially ignored by the single currency," it said.
German industrial orders fall 4.0 pct m/m in March
BERLIN, May 5 (Reuters) - German industrial orders fell unexpectedly in March, data showed on Thursday, missing expectations for a meagre gain as the Economy Ministry said companies reported an unusually low number of large orders.
Seasonally and price-adjusted order intake sank 4.0 percent compared to the previous month, far below the 0.1 percent growth expected by economists polled by Reuters, while February's figure was revised a half a percentage point lower.
European Stocks Slide for Third Day; Lloyds, SocGen Tumble After Earnings (Source: Bloomberg)
European stocks fell for a third day as bank earnings disappointed, commodities plunged and a jump in U.S. jobless-benefit claims fueled concern that the recovery of the world’s largest economy may falter. Lloyds Banking Group Plc (LLOY) slumped the most in almost a year after reporting a quarterly loss. Societe Generale SA, France’s second-largest bank by market value, dropped 5 percent as profit missed analyst estimates. Fresnillo Plc (FRES), the world’s biggest primary silver producer, and Essar Energy Plc (ESSR) sank more than 4 percent as the Standard & Poor’s GSCI Index of 24 raw materials tumbled the most in almost two years.
Trichet’s Dollar Comments Hint at Motivation for ECB Rate Move Restraint (Source: Bloomberg)
The euro may have helped European Central Bank President Jean-Claude Trichet decide against a June interest-rate increase, economists said.
King’s Defense of Record-Low Rates in U.K. Is Bolstered by Economic Data (Source: Bloomberg)
Bank of England Governor Mervyn King has gained more ammunition in his battle to keep interest rates at a record low after reports suggested the economy isn’t yet strong enough for a withdrawal of emergency stimulus. The bank kept its benchmark rate at 0.5 percent today, as forecast by all 43 economists in a Bloomberg News survey. It also maintained its bond-purchase program at 200 billion pounds ($330 billion). King defeated calls last month from three policy makers to tighten policy to tame inflation that’s twice the central bank’s 2 percent target.
Portugal Says Economy to Shrink Twice as Much as Forecast Under Added Cuts (Source: Bloomberg)
Portugal’s economy will shrink twice as much as forecast this year as the government implements additional austerity measures to qualify for an international aid package of as much as 78 billion euros ($116 billion). Gross domestic product will decline 2 percent both in 2011 and 2012, Portuguese Finance Minister Fernando Teixeira dos Santos forecast today at a press conference in Lisbon to announce the bailout agreement with the European Union and the International Monetary Fund. That compares with the government’s March projection that GDP would shrink 0.9 percent this year and expand 0.3 percent in 2012.
Trichet Signals ECB Will Wait Until After June for Next Interest-Rate Move (Source: Bloomberg)
European Central Bank President Jean- Claude Trichet signaled the bank will wait until after June to raise interest rates again, wrong-footing some investors who had expected a quicker move to fight inflation. The euro plunged. “We are never pre-committed and we can increase rates whenever we judge it appropriate,” Trichet said at a press conference in Helsinki today after the ECB left its benchmark interest rate at 1.25 percent. He refrained from using the phrase “strong vigilance” that would have signaled a June rate increase, saying only that the ECB will monitor inflation risks “very closely.”
Portugal Wins EU-IMF Aid Package, Fanning European Backlash Over Bailouts (Source: Bloomberg)
Portugal won a 78 billion-euro ($116 billion) international aid package, fanning domestic controversy over budget cuts amid an election campaign and renewing discontent in Europe’s richer countries over bailouts. Emergency lending for Portugal lifted the cost of fighting Europe’s debt crisis to 256 billion euros just as speculation mounts that Greece, the country where it started, is plunging into a deeper financial hole.
Australia Prepares to Tighten Fiscal Policy in Hit to Consumers (Source: Bloomberg)
Australia’s government next week will unveil spending cuts aimed at assuring a return to a budget surplus, helping the nation’s central bank contain inflation at the expense of growth in the economy’s 20th year of expansion.
FOREX-Dollar sinks to 3-year lows as US rate view weighs
NEW YORK, May 4 (Reuters) - The dollar slumped to a three-year low on Wednesday and the currency's outlook darkened further as softer-than-expected employment and services sector data affirmed expectations U.S. interest rates would remain low this year.
The greenback also fell to a record against the Swiss franc and at one point dropped below 80.50 against the yen, the dollar's weakest level since major central banks intervened to weaken the Japanese currency on March 18.
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