DJIA chart reading : side way range bound little upside biased.
Hang Seng chart reading : correction range bound downside biased.
U.S. Consumer Confidence Declines to Nine-Month Low, Bloomberg Index Shows (Source: Bloomberg)
Consumer confidence fell last week to the lowest level in nine months as the cost of fuel pinched U.S. household budgets. The Bloomberg Consumer Comfort Index declined to minus 49.4 in the period to May 15, the worst reading since August, from the prior week’s minus 46.9. A gauge of personal finances plunged to the weakest level since October 2009, and a monthly measure of economic expectations held at a seven-month low.
U.S. Stocks Advance as Decline in Weekly Jobless Claims Boosts Optimism (Source: Bloomberg)
U.S. stocks advanced, sending the Standard & Poor’s 500 Index higher for a second straight day, as a government report showing a bigger-than-forecast drop in jobless claims bolstered optimism about the economic recovery. LinkedIn Corp., the largest professional-networking website, more than doubled in the first day of trading after its initial public offering. Thermo Fisher Scientific Inc. (TMO) jumped 4.2 percent after agreeing to buy Phadia AB for about $3.5 billion to grow in testing for allergies and autoimmune diseases. Intel Corp. (INTC), KLA-Tencor Corp. (KLAC) and Applied Materials Inc. (AMAT) slumped at least 1.1 percent as Goldman Sachs Group Inc. cut their ratings amid increased competition and excess supply.
Home Sales in U.S. Drop, Manufacturing Stalls in Sign Recovery Is Flagging (Source: Bloomberg)
Sales of existing U.S. homes unexpectedly declined, manufacturing in the Philadelphia region slowed and consumer confidence dropped, pointing to an economy that is struggling to regain momentum following the surge in energy costs.
Most at Fed want rate hikes before asset sales
WASHINGTON, May 18 (Reuters) - Most Federal Reserve officials prefer to raise rock-bottom interest rates before selling assets when the time comes to tighten policy, according to minutes of their April meeting.
The minutes, released on Wednesday, showed worries about inflation rising among Fed officials last month before a big surge in oil prices subsided. At the same time, the minutes stressed the April discussion did not indicate the Fed was ready to start tightening policy any time soon.
Goldman Lowers Dollar Forecasts Versus Euro on Weak U.S. Growth Prospects (Source: Bloomberg)
Goldman Sachs Group Inc. (GS), the U.S. bank that lost money from trading on only one day in the first quarter, cut its dollar forecasts saying growth in the world’s largest economy is lagging behind other nations. The greenback will weaken to $1.45 per euro over three months from an earlier projection of $1.40, analysts led by Thomas Stolper in London wrote in a note to clients yesterday The dollar will decline to $1.50 in six months and $1.55 in a year, the analysts forecast. They also cut their three-month target for the currency to 82 yen from 84 yen.
Fed Nears Accord on How to Exit Record Stimulus With Timing Still Unclear (Source: Bloomberg)
Federal Reserve policy makers neared agreement on the sequence of tools they will use to withdraw record monetary stimulus, with little accord on when to start. The central bank should first end its policy of reinvesting proceeds from maturing securities and later raise interest rates and sell assets, majorities of policy makers said at their April 26-27 meeting, according to minutes released yesterday. The caveat: Talks about the exit strategy don’t mean that tightening “would necessarily begin soon,” the report said.
Quake knocks Japan into recession, late 2011 recovery still eyed
TOKYO, May 19 (Reuters) - Japan's economy shrank much more than expected in the first quarter and slipped into recession after the triple blow of the March earthquake, tsunami and nuclear crisis hit business and consumer spending and tore apart supply chains.
The Bank of Japan (BOJ) expects the economy to resume growing in the second half of the year, but some economists say the surprisingly grim gross domestic product figures in the first quarter increase the risk that the pace of recovery will be slower than anticipated. Manufacturers are moving to repair supply chains, but fears of power shortages in the summer and an ongoing nuclear crisis also pose risks, economists say.
Japan’s Slump Heightens Calls for Faster Stimulus (Source: Bloomberg)
Japanese consumers are making deeper cutbacks after the March 11 earthquake than anticipated, heightening the urgency for policy makers to unveil measures to end the nation’s third recession in a decade.
Yen Declines Versus Euro for Fifth Day (Source: Bloomberg)
The yen dropped against the euro for a fifth day on prospects the Bank of Japan today will reiterate its pledge to maintain monetary stimulus to support an economy in recession after a record earthquake.
S. Korea to Tighten Curbs on Currency Derivatives (Source: Bloomberg)
South Korea said it will tighten limits on the amount of currency derivatives banks can hold as it seeks to curb swings in capital flows and the won. Local branches of overseas banks will be allowed to hold currency derivatives contracts equivalent to no more than 200 percent of equity capital, down from 250 percent, and the cap for domestic banks will be reduced to 40 percent from 50 percent, the finance ministry said in a statement late yesterday.
April Retail Sales Gain More Than Forecast on Warm Weather, Royal Wedding (Source: Bloomberg)
U.K. retail sales rose more than economists forecast in April as warm weather and the extra bank holiday for the Royal Wedding boosted consumer spending. Sales including auto fuel climbed 1.1 percent from March, when they rose a revised 0.3 percent, the Office for National Statistics said today in London. The increase was the biggest for an April since 2002 and exceeded the 0.8 percent median forecast of 20 economists in a Bloomberg News survey. From a year earlier, sales increased 2.8 percent.
European Stocks Climb; BP Gains, Pandora Slumps, Glencore Debuts in London (Source: Bloomberg)
European stocks rose for a second day as industrial stocks led gains on the benchmark Stoxx Europe 600 Index after the U.S. Federal Reserve signaled that interest rates will remain low. Glencore International Plc was unchanged on its first day of trading in London after it sold $10 billion of stock in its initial public offering. BP Plc (BP/) climbed 1.6 percent as BofA Merrill Lynch Global Research advised buying the shares. Pandora A/S, the Danish maker of jewelry, slumped 22 percent after saying it has lifted prices globally for the first time in its history because of the rising cost of silver and gold.
Swiss Investor Sentiment Declines, Credit Suisse Says (Source: Bloomberg)
Swiss investor confidence dropped for the first time in four months in May as a worsening European debt crisis and an appreciating franc clouded the economic growth outlook. An index of investor and analyst expectations that aim to predict economic developments six months in advance fell to minus 11.5 from 8.8 in April, the ZEW Center for European Economic Research in Mannheim, Germany, and Zurich-based Credit Suisse Group AG (CSGN) said in an e-mailed statement today. The survey was conducted May 10-16.
Thai Economic Growth Probably Accelerated (Source: Bloomberg)
Thailand’s economic growth probably quickened last quarter to the fastest pace in a year, sustaining pressure for higher interest rates to contain inflation. Gross domestic product rose 2.2 percent in the three months through March from the previous quarter, when it climbed 1.2 percent, according to the median of 11 estimates in a Bloomberg News survey. The data is due 9:30 a.m. local time on May 23.
New Zealand Budget May Limit RBNZ Rate Rises Through Earthquake Rebuilding (Source: Bloomberg)
New Zealand’s planned spending cuts to achieve a budget surplus in four years may add to the case for interest rates to stay low through rebuilding from the country’s deadliest earthquake in eight decades. Prime Minister John Key announced more than NZ$5 billion ($4.1 billion) in spending cuts and the end of deficits by fiscal 2015 in a budget that predicted inflation will moderate this year and wages will fall in the year ending March 31. He told parliament that lower borrowing costs were a “dividend” of the strategy.
FOREX-Euro edges up, but Greek debt worries limit gains
LONDON, May 19 (Reuters) - The euro edged up in choppy trade on Thursday with traders citing demand from hedge funds and Middle East accounts, though uncertainty about the implications of a possible Greek debt restructuring limited gains. Analysts said investors were looking for opportunities to start buying the euro and riskier currencies after recent falls, but concerns about euro zone debt kept the euro below its 55-day moving average around $1.4297.
Traders pointed to a report that quoted European Central Bank head Jean-Claude Trichet as saying the bank would not accept Greek bonds as collateral should there be a decision to lengthen the term of Greece's debt repayments. The same view was attributed to policymaker Juergen Stark by a bank spokesman.
No comments:
Post a Comment