20110608 1146 Global Market Related News.

DJIA chart reading : downside biased with possible pullback.

Hang Seng chart reading : downside biased.

World Bank Urges Rate Rises in Emerging Nations With Global Growth at 3.2% (Source: Bloomberg)
Emerging-market economies, growing almost three times faster than their developed counterparts, need to speed spending cuts and interest-rate increases as they fight inflation and overheating, the World Bank said.

Asian Stocks Drop on Stimulus Concerns (Source: Bloomberg)
Asian stocks dropped, dragging the regional benchmark index to its lowest level in two weeks, as Federal Reserve Chairman Ben S. Bernanke gave no hint of a new round of economic stimulus even as the recovery slows. LG Electronics Ind., the world’s third-biggest maker of mobile phones, dropped 1.5 percent in Seoul. Nissan Motor Co., the Japanese carmaker that gets about 34 percent of sales from North America, slipped 1.5 percent. Tokyo Electric Power Co., owner of the crippled Fukushima Dai-Ichi nuclear power station, slumped 5.1 percent, headed for a record low, after the Nikkei newspaper reported that all Japan’s nuclear reactors may be idled.

U.S. Economy Stays Above Its ‘Stall Speed,’ Alan Ruskin Says: Tom Keene (Source: Bloomberg)
The U.S. economy is growing above “stall speed,” according to Alan Ruskin, global head of Group- of-10 foreign-exchange strategy at Deutsche Bank AG in New York. “A lot of people say that if the U.S. economy slows below 2 percent in year-over-year gross domestic product historically, we’ve slipped in to recession,” Ruskin said in an interview on Bloomberg Television’s “Midday Surveillance” with Tom Keene. “The key is that we stay above that line, otherwise that is perceived as stall speed and other issues kick in.”

Job Openings in U.S. Decreased in April for First Time in Three Months (Source: Bloomberg)
Job openings in the U.S. decreased in April for the first time in three months, showing companies started to lose confidence in the expansion’s durability even before hiring slumped in May. The number of positions waiting to be filled fell by 151,000 to 2.97 million, the fewest since January, the Labor Department said today in a statement posted on its website. The number of people hired and the number of workers fired also decreased.

U.S. Consumer Borrowing Increases by $6.25 Billion in Seventh Monthly Gain (Source: Bloomberg)
U.S. consumer borrowing rose in April for a seventh consecutive month, led by a gain in non-revolving debt, including auto and student loans, the Federal Reserve reported today. Credit rose by $6.25 billion after a revised $4.82 billion gain in March that was smaller than the previous estimate, the Fed said in Washington. Economists projected a $5 billion increase in, according to a Bloomberg News survey.

Inflation Target Should Be Set to Spur U.S. Recovery, Fed’s Lockhart Says (Source: Bloomberg)
Federal Reserve Bank of Atlanta President Dennis Lockhart said the central bank should set an explicit goal for inflation to invigorate the “halting” economic recovery. “Now is a good time to reaffirm in explicit terms the central bank’s commitment to delivering its piece of the package of fundamentals needed to assure a durable and lasting recovery,” Lockhart said today in a speech in Charlotte, North Carolina. It was his first call for the adoption of an inflation target.

Fed Is Said to Back Three-Percentage-Point Capital Surcharge for Big Banks (Source: Bloomberg)
The Federal Reserve supports a proposal at the Basel Committee on Banking Supervision that calls for a maximum capital surcharge of three percentage points on the largest global banks, according to a person familiar with the discussions.

U.S. Stocks Decline as Fed’s Bernanke Gives No Hint of New Stimulus Plan (Source: Bloomberg)
U.S. stocks fell a fifth day, the longest slump for the Standard & Poor’s 500 Index in almost a year, as Federal Reserve Chairman Ben S. Bernanke gave no hint of a new round of economic stimulus even as the recovery slows. Cisco Systems Inc. (CSCO), Bank of America Corp. (BAC) and Hewlett- Packard Co. lost more than 1 percent to lead losses in the Dow Jones Industrial Average. Six of 10 industry groups in the S&P 500 fell, with the index erasing a rally of up to 0.8 percent in the final minutes of trading, as Bernanke gave no indication of a new round of asset purchases known as quantitative easing.

Dimon Asks Bernanke If Regulators Went Too Far (Source: Bloomberg)
JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon asked Federal Reserve Chairman Ben S. Bernanke whether regulators have gone too far by reining in the U.S. banking system and are slowing economic growth. Dimon asked whether the central banker has measured the cumulative effects of new capital requirements, mortgage standards and other rules imposed on the system in the wake of the U.S. financial crisis. Dimon, 55, spoke yesterday in a question-and-answer session after Bernanke addressed a conference of bankers in Atlanta.

Fed officials say economic data disappointing
NEW YORK, June 6 (Reuters) - U.S. Federal Reserve officials on Monday said recent economic data has been disappointing, with one suggesting it could delay the Fed's exit from its extremely easy monetary policy.
"The slowdown does change when you think the timing would be for when an exit strategy would be appropriate," Eric Rosengren, president of the Boston Federal Reserve Bank, told CNBC in an interview.

‘Uneven’ Recovery Still Needs Stimulus: Bernanke (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said record monetary stimulus is still needed to boost a “frustratingly slow” recovery and repeated that a rise in inflation is likely to prove temporary. “The economy is still producing at levels well below its potential; consequently, accommodative monetary policies are still needed,” Bernanke said today in a speech to a conference in Atlanta. At the same time, the Fed “will take whatever actions are necessary to keep inflation well controlled,” he said.

China’s Net Purchases of Japan’s Long-Term Debt Rises to Record in April (Source: Bloomberg)
China’s net purchases of Japan’s long-term debt reached a record as the larger nation seeks to diversify the world’s biggest currency reserves. China bought a net 1.33 trillion yen ($16.6 billion) in Japanese long-term bonds in April, the biggest amount since records began in January 2005, according to data released today in Tokyo by Japan’s Ministry of Finance. The nation sold a net 1.47 trillion yen of short-term debt, the data shows.

Euro ticks up, Asian shares fall on growth fears
SINGAPORE, June 7 (Reuters) - The euro ticked up in Asia steadying from a slide after the Eurogroup chairman said the common currency was overvalued, while Asian stocks fell for a fourth day on worries about slowing global growth.  "Those comments (from Juncker) probably weighed on the euro at the margin. But the direction of a weaker dollar is pretty clear this point in time, so I'm expecting a bounce in the euro," said Richard Grace, chief currency strategist at Commonwealth Bank.

Japanese Stocks Decline After Bernanke Gives No Signal on New Stimulus (Source: Bloomberg)
Japanese stocks declined after Federal Reserve Chairman Ben S. Bernanke gave no hint of a new round of economic stimulus even as the U.S. recovery slows.

S. Korea’s Revised GDP in Line With Estimates (Source: Bloomberg)
South Korea’s economy expanded in line with initial estimates in the first quarter, underpinning the case for the central bank to raise borrowing costs this week. Gross domestic product grew 4.2 percent from a year earlier, unchanged from the earlier estimate, the Bank of Korea said in Seoul today. The economy expanded 1.3 percent in the three months through March from the previous quarter, less than the April estimate of a 1.4 percent gain.

German April manufacturing orders rise 2.8 pct m/m
BERLIN, June 7 (Reuters) - German manufacturing orders rose a seasonally adjusted 2.8 percent in April helped by an above average number of orders worth over 50 million euros ($73  million), data showed on Tuesday, indicating the economy should expand at a healthy pace.
Data published by the German economy ministry on Tuesday also revised March orders upwards to show a drop of 2.7 percent instead of the sharper 4.0 percent fall initially reported.

RBA’s Stevens Holds Rates as Currency Strength Hurts Factories, Retailers (Source: Bloomberg)
The Reserve Bank of Australia’s decision to extend a pause in interest-rate increases signals concern that a rising currency and the developed world’s highest borrowing costs are restraining growth.

FOREX-Dlr index sinks to 1-mth low after China warning
LONDON, June 7 (Reuters) - The dollar hit a one-month low against a basket of currencies on Tuesday and a record trough against the Swiss franc as bearish comments from a Chinese official clouded an already weak outlook for the greenback.
Investors stepped up dollar selling after a senior official at the Chinese forex regulator warned about the risks of excessive dollar holdings, saying Washington could pursue a policy to weaken the greenback.