DJIA chart reading : correction range bound upside biased.
Hang Seng chart reading : pullback correction downside biased.
World stocks up as oil slips;Greek woes hit euro
LONDON, May 10 (Reuters) - World stocks advanced on Tuesday as falling oil prices and strong Chinese trade data reinforced optimism about the global economy, while Greek debt concerns pushed the euro broadly weaker. The euro briefly gained against the dollar after a media report that a deal to resolved Greece's debt problems could come as soon as June, but Greece denied it was discussing a new aid package.
Cost of U.S. Imported Goods Rises More Than Estimated on Food, Fuel Prices (Source: Bloomberg)
Prices of goods imported into the U.S. rose more than forecast in April as a slumping dollar and growing economies overseas pushed up the cost of fuel and food.
U.S. Wholesale Inventories Increased 1.1% in March; Sales Climbed by 2.9% (Source: Bloomberg)
Inventories at U.S. wholesalers rose less than sales in March, a sign companies will continue to add to stockpiles to meet demand.
Bernanke’s QE2 Averts Deflation, Spurs Credit (Source: Bloomberg)
Ben S. Bernanke’s $600 billion strike against deflation is paying off, as stock and debt markets rise, bank lending grows and economists forecast faster growth. The Standard & Poor’s 500 Index has gained 13.5 percent since the Federal Reserve chairman announced on Nov. 3 the plan to buy Treasuries through its so-called quantitative easing policy. Government bond yields show investors expect consumer prices to rise in line with historical averages. The riskiest companies are obtaining credit at the cheapest borrowing costs ever and Fed data show that commercial and industrial loans outstanding are rising for the first time since 2008.
U.S. Stocks Rise on Earnings, M&A Deals (Source: Bloomberg)
U.S. stocks rose for a third day as higher-than-estimated profit forecasts and Microsoft Corp. (MSFT)’s purchase of Skype Technologies SA bolstered optimism that earnings and takeovers will keep fueling the rally. Dean Foods Co. (DF), the largest U.S. milk processor, jumped 11 percent after its earnings forecast beat analysts’ estimates. Microsoft fell 0.6 percent after agreeing to buy Skype for $8.5 billion to expand its Internet presence after past failures. Titanium Metals Corp. (TIE) gained 2 percent, pacing gains in raw- material producers, as metal prices advanced before the release of figures that may show weaker inflation in China.
Home Prices Drop in Three-Fourths of U.S. Metro Areas as Foreclosures Rise (Source: Bloomberg)
Home prices fell in more than three- fourths of U.S. cities in the first quarter as foreclosures that sell at cut-rate prices devalued real estate. The median price of a single-family home dropped in 118 metropolitan areas out of 153 cities measured, the National Association of Realtors said in a report today. The biggest decline was in Biloxi, Mississippi, followed by Akron, Ohio.
ANALYSIS-Dollar vs commodities play strong on end of QE2
LONDON, May 10 (Reuters) - Prospects of an end to liquidity provided by the U.S. Federal Reserve have sent the inverse correlation between commodities and the dollar into overdrive and to many investors that means time to sell.
The inverse relationship has surged in recent days to levels not seen since early November when the U.S. central bank announced further liquidity boosting measures.
China Says It Will Try to Control Inflation, Boost Imports (Source: Bloomberg)
China said it faces challenges from rising consumer prices and will maintain a “prudent” monetary policy, according to a statement released today following the annual Strategic and Economic Dialogue with U.S. officials. “China will guide its monetary policy to return to normality from an anti-crisis status,” according to the statement distributed by the Chinese delegation to the talks in Washington. “It will try to meet reasonable demand for capital needed for economic growth, while focusing on removing inflationary monetary elements.”
China Assures Move Toward a More Flexible Yuan Policy, U.S. Official Says (Source: Bloomberg)
China assured the U.S. that it will continue moving toward a more flexible yuan exchange rate, a U.S. Treasury official said. Chinese officials meeting with their U.S. counterparts in Washington also agreed to allow U.S. and other foreign banks to sell mutual funds and provide financial custodial services in China, the official said in a telephone briefing with reporters today.
China Exports Fuel Wider-Than Estimated $11.4 Billion April Trade Surplus (Source: Bloomberg)
China reported a trade surplus that was more than three times larger than forecast in April as exports surged to a record, bolstering the U.S. case for faster yuan gains as officials from both nations meet for annual talks in Washington. The surplus widened to $11.4 billion and exceeded the forecasts of all 27 economists in a Bloomberg News survey. Exports climbed 30 percent to $156 billion while import growth slowed to 22 percent, the customs bureau said today.
China’s Commodity Deals Dropping as Oil, Copper Prices Rise (Source: Bloomberg)
China, the world’s biggest user of natural resources, is pulling back from commodities and energy acquisitions as the rest of the world pursues deals at the fastest pace since the financial crisis. China’s companies have spent $14.2 billion on acquisitions this year, down 30 percent from the same period last year, according to data compiled by Bloomberg. Worldwide the value of takeovers in the industry is $176 billion, the most at this time of the year since 2007. U.S. companies from Alpha Natural Resources Inc. (ANR) to DuPont are the largest buyers.
Toyota: output recovery still seen taking to year-end
TOKYO, May 10 (Reuters) - Toyota Motor Corp on Tuesday denied a report its output would return to pre-quake levels two or three months earlier than expected, but said it will try to resume normal production as soon as possible.
Japan's automakers have slashed production after the massive earthquake in March crippled supply chains and damage to a major nuclear plant caused power shortages.
Interest Rate on EU Aid Loans to Portugal to Be Between 5.5%-6%, Rehn Says (Source: Bloomberg)
Portugal will pay between 5.5 percent and 6 percent interest on the European portion of a 78-billion euro ($112 billion) bailout, comparable to the rate currently paid by Ireland. “We will follow the IMF pricing policy and we will have a small premium with a markup for risk, and this will lead to the interest to be somewhere on the scale of over 5.5 percent but clearly below 6 percent,” European Union Monetary Affairs Commissioner Olli Rehn told reporters in Strasbourg, France.
EU Aims to Raise Tariffs on Fast-Growing Nations Like China (Source: Bloomberg)
The European Union intends to increase tariffs on developing countries including China, India and Brazil under a plan to give only the neediest nations preferential access to the world’s biggest market. The European Commission proposed to deny faster-growing emerging economies tariff reductions granted through the Generalized System of Preferences, under which the EU imported 60 billion euros ($86 billion) of goods in 2009. That figure would fall to about 38 billion euros under the proposal to limit the trade benefits to 80 nations instead of the current 176, according to the commission, the EU’s executive arm.
Australia Shrinks Spending to Combat Inflation (Source: Bloomberg)
Australia’s government will end 23 years of spending growth to ease inflation from a mining boom and support the return to a budget surplus, even as it plans measures to help companies hurt by a record-high currency. The underlying cash deficit will narrow to A$22.6 billion ($24.4 billion) in the 12 months to June 30, 2012, less than half the A$49.4 billion gap this fiscal year, Treasurer Wayne Swan said in Canberra yesterday. The government plans A$22.2 billion in savings over the next four years that it projects will help deliver a A$3.5 billion surplus in 2012-13, an election year.
Singapore to Lure More Hedge Funds (Source: Bloomberg)
Singapore is attracting more global hedge funds that are drawn to Asia’s economic growth as the regulator seeks to “enhance the ecosystem” for managers. “We continue to see interest from fund managers as well as alternative investment managers, including global and indigenous hedge funds, which add diversity to the broader asset management industry,” Ng Nam Sin, assistant managing director of the Monetary Authority of Singapore, wrote in an e-mailed response to questions.
South Korea’s Jobless Rate Declines to a 3-Month Low As Economy Recovers (Source: Bloomberg)
South Korea’s unemployment rate fell to a three-month low as an economic recovery spurred hiring at manufacturers and health and social welfare service providers. The jobless rate fell to 3.6 percent in April from 4 percent in March, Statistics Korea said today in Gwacheon, south of Seoul. The median estimate in a Bloomberg News survey of 12 economists was for a rate of 3.8 percent.
Indonesia May Extend Interest-Rate Pause (Source: Bloomberg)
Indonesia’s central bank will probably keep interest rates unchanged for a third consecutive meeting to support the economy, allowing gains in the rupiah to reduce inflationary pressures.
FOREX-Euro volatile on Greek aid reports
LONDON, May 10 (Reuters) - The euro was steady versus the dollar in volatile trade on Tuesday as conflicting reports emerged of a potential new aid deal for debt-laden Greece to help it meet its funding requirements in the next two years.
The euro briefly gained, hitting the day's high at $1.4379 after Dow Jones News reported that Greece could receive aid totalling 60 billion euros as soon as June, but pulled back after Greece denied the report.
LONDON, May 10 (Reuters) - World stocks advanced on Tuesday as falling oil prices and strong Chinese trade data reinforced optimism about the global economy, while Greek debt concerns pushed the euro broadly weaker. The euro briefly gained against the dollar after a media report that a deal to resolved Greece's debt problems could come as soon as June, but Greece denied it was discussing a new aid package.
Cost of U.S. Imported Goods Rises More Than Estimated on Food, Fuel Prices (Source: Bloomberg)
Prices of goods imported into the U.S. rose more than forecast in April as a slumping dollar and growing economies overseas pushed up the cost of fuel and food.
U.S. Wholesale Inventories Increased 1.1% in March; Sales Climbed by 2.9% (Source: Bloomberg)
Inventories at U.S. wholesalers rose less than sales in March, a sign companies will continue to add to stockpiles to meet demand.
Bernanke’s QE2 Averts Deflation, Spurs Credit (Source: Bloomberg)
Ben S. Bernanke’s $600 billion strike against deflation is paying off, as stock and debt markets rise, bank lending grows and economists forecast faster growth. The Standard & Poor’s 500 Index has gained 13.5 percent since the Federal Reserve chairman announced on Nov. 3 the plan to buy Treasuries through its so-called quantitative easing policy. Government bond yields show investors expect consumer prices to rise in line with historical averages. The riskiest companies are obtaining credit at the cheapest borrowing costs ever and Fed data show that commercial and industrial loans outstanding are rising for the first time since 2008.
U.S. Stocks Rise on Earnings, M&A Deals (Source: Bloomberg)
U.S. stocks rose for a third day as higher-than-estimated profit forecasts and Microsoft Corp. (MSFT)’s purchase of Skype Technologies SA bolstered optimism that earnings and takeovers will keep fueling the rally. Dean Foods Co. (DF), the largest U.S. milk processor, jumped 11 percent after its earnings forecast beat analysts’ estimates. Microsoft fell 0.6 percent after agreeing to buy Skype for $8.5 billion to expand its Internet presence after past failures. Titanium Metals Corp. (TIE) gained 2 percent, pacing gains in raw- material producers, as metal prices advanced before the release of figures that may show weaker inflation in China.
Home Prices Drop in Three-Fourths of U.S. Metro Areas as Foreclosures Rise (Source: Bloomberg)
Home prices fell in more than three- fourths of U.S. cities in the first quarter as foreclosures that sell at cut-rate prices devalued real estate. The median price of a single-family home dropped in 118 metropolitan areas out of 153 cities measured, the National Association of Realtors said in a report today. The biggest decline was in Biloxi, Mississippi, followed by Akron, Ohio.
ANALYSIS-Dollar vs commodities play strong on end of QE2
LONDON, May 10 (Reuters) - Prospects of an end to liquidity provided by the U.S. Federal Reserve have sent the inverse correlation between commodities and the dollar into overdrive and to many investors that means time to sell.
The inverse relationship has surged in recent days to levels not seen since early November when the U.S. central bank announced further liquidity boosting measures.
China Says It Will Try to Control Inflation, Boost Imports (Source: Bloomberg)
China said it faces challenges from rising consumer prices and will maintain a “prudent” monetary policy, according to a statement released today following the annual Strategic and Economic Dialogue with U.S. officials. “China will guide its monetary policy to return to normality from an anti-crisis status,” according to the statement distributed by the Chinese delegation to the talks in Washington. “It will try to meet reasonable demand for capital needed for economic growth, while focusing on removing inflationary monetary elements.”
China Assures Move Toward a More Flexible Yuan Policy, U.S. Official Says (Source: Bloomberg)
China assured the U.S. that it will continue moving toward a more flexible yuan exchange rate, a U.S. Treasury official said. Chinese officials meeting with their U.S. counterparts in Washington also agreed to allow U.S. and other foreign banks to sell mutual funds and provide financial custodial services in China, the official said in a telephone briefing with reporters today.
China Exports Fuel Wider-Than Estimated $11.4 Billion April Trade Surplus (Source: Bloomberg)
China reported a trade surplus that was more than three times larger than forecast in April as exports surged to a record, bolstering the U.S. case for faster yuan gains as officials from both nations meet for annual talks in Washington. The surplus widened to $11.4 billion and exceeded the forecasts of all 27 economists in a Bloomberg News survey. Exports climbed 30 percent to $156 billion while import growth slowed to 22 percent, the customs bureau said today.
China’s Commodity Deals Dropping as Oil, Copper Prices Rise (Source: Bloomberg)
China, the world’s biggest user of natural resources, is pulling back from commodities and energy acquisitions as the rest of the world pursues deals at the fastest pace since the financial crisis. China’s companies have spent $14.2 billion on acquisitions this year, down 30 percent from the same period last year, according to data compiled by Bloomberg. Worldwide the value of takeovers in the industry is $176 billion, the most at this time of the year since 2007. U.S. companies from Alpha Natural Resources Inc. (ANR) to DuPont are the largest buyers.
Toyota: output recovery still seen taking to year-end
TOKYO, May 10 (Reuters) - Toyota Motor Corp on Tuesday denied a report its output would return to pre-quake levels two or three months earlier than expected, but said it will try to resume normal production as soon as possible.
Japan's automakers have slashed production after the massive earthquake in March crippled supply chains and damage to a major nuclear plant caused power shortages.
Interest Rate on EU Aid Loans to Portugal to Be Between 5.5%-6%, Rehn Says (Source: Bloomberg)
Portugal will pay between 5.5 percent and 6 percent interest on the European portion of a 78-billion euro ($112 billion) bailout, comparable to the rate currently paid by Ireland. “We will follow the IMF pricing policy and we will have a small premium with a markup for risk, and this will lead to the interest to be somewhere on the scale of over 5.5 percent but clearly below 6 percent,” European Union Monetary Affairs Commissioner Olli Rehn told reporters in Strasbourg, France.
EU Aims to Raise Tariffs on Fast-Growing Nations Like China (Source: Bloomberg)
The European Union intends to increase tariffs on developing countries including China, India and Brazil under a plan to give only the neediest nations preferential access to the world’s biggest market. The European Commission proposed to deny faster-growing emerging economies tariff reductions granted through the Generalized System of Preferences, under which the EU imported 60 billion euros ($86 billion) of goods in 2009. That figure would fall to about 38 billion euros under the proposal to limit the trade benefits to 80 nations instead of the current 176, according to the commission, the EU’s executive arm.
Australia Shrinks Spending to Combat Inflation (Source: Bloomberg)
Australia’s government will end 23 years of spending growth to ease inflation from a mining boom and support the return to a budget surplus, even as it plans measures to help companies hurt by a record-high currency. The underlying cash deficit will narrow to A$22.6 billion ($24.4 billion) in the 12 months to June 30, 2012, less than half the A$49.4 billion gap this fiscal year, Treasurer Wayne Swan said in Canberra yesterday. The government plans A$22.2 billion in savings over the next four years that it projects will help deliver a A$3.5 billion surplus in 2012-13, an election year.
Singapore to Lure More Hedge Funds (Source: Bloomberg)
Singapore is attracting more global hedge funds that are drawn to Asia’s economic growth as the regulator seeks to “enhance the ecosystem” for managers. “We continue to see interest from fund managers as well as alternative investment managers, including global and indigenous hedge funds, which add diversity to the broader asset management industry,” Ng Nam Sin, assistant managing director of the Monetary Authority of Singapore, wrote in an e-mailed response to questions.
South Korea’s Jobless Rate Declines to a 3-Month Low As Economy Recovers (Source: Bloomberg)
South Korea’s unemployment rate fell to a three-month low as an economic recovery spurred hiring at manufacturers and health and social welfare service providers. The jobless rate fell to 3.6 percent in April from 4 percent in March, Statistics Korea said today in Gwacheon, south of Seoul. The median estimate in a Bloomberg News survey of 12 economists was for a rate of 3.8 percent.
Indonesia May Extend Interest-Rate Pause (Source: Bloomberg)
Indonesia’s central bank will probably keep interest rates unchanged for a third consecutive meeting to support the economy, allowing gains in the rupiah to reduce inflationary pressures.
FOREX-Euro volatile on Greek aid reports
LONDON, May 10 (Reuters) - The euro was steady versus the dollar in volatile trade on Tuesday as conflicting reports emerged of a potential new aid deal for debt-laden Greece to help it meet its funding requirements in the next two years.
The euro briefly gained, hitting the day's high at $1.4379 after Dow Jones News reported that Greece could receive aid totalling 60 billion euros as soon as June, but pulled back after Greece denied the report.
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