Monday, June 13, 2011

20110613 0959 Global Market Related News.

 DJIA chart reading : downside biased .
 Hang Seng chart reading : downside biased.

Asian Stocks Fall Amid Global Recovery Concern (Source: Bloomberg)
Asian stocks dropped, extending last week’s longest streak of weekly losses since October 2008 for the regional benchmark index, amid concern the global economy is slowing.

Shares drop for 7th day; euro under pressure
HONG KONG, June 10 (Reuters) - Asian stocks fell for a seventh consecutive day led by selling in technology counters on wariness about the broader economic outlook, while the euro held above one-week lows as worries about the euro-zone's debt problems outweighed a likely interest rate rise by the European Central Bank next month.   "Equity valuations are neither expensive nor cheap if you look at most markets in Asia today. I don't think valuations are flashing a buy or sell signal at this point in time," said Binay Chandgothia, chief investment officer at Principal Global Investors.

‘Perfect Storm’ May Threaten Global Economy: Roubini (Source: Bloomberg)
A “perfect storm” of fiscal woe in the U.S., a slowdown in China, European debt restructuring and stagnation in Japan may converge on the global economy, New York University professor Nouriel Roubini said. There’s a one-in-three chance the factors will combine to stunt growth from 2013, Roubini said in a June 11 interview in Singapore. Other possible outcomes are “anemic but okay” global growth or an “optimistic” scenario in which the expansion improves.

Debt Agreement in Congress Would Spur Flagging U.S. Economy, Lawmakers Say (Source: Bloomberg)
Congress could help improve the economic recovery by reaching a debt-reduction deal, lawmakers said on Sunday morning talk shows as they face an Aug. 2 deadline that risks sending the U.S. government into default. “I think that would help calm the markets and help us get to recovery,” Republican Representative Paul Ryan of Wisconsin, chairman of the House Budget Committee, said today on CBS’s “Face the Nation” program, referring to a budget deal that would control future U.S. deficits.

Retail Sales Probably Decreased in May (Source: Bloomberg)
Sales at retailers probably fell in May as Americans bought fewer cars and elevated gasoline costs restrained consumers, reports may show this week. The 0.5 percent drop in purchases, the first decline in 11 months, would follow a 0.5 percent gain in April, according to the median forecast of 62 economists surveyed by Bloomberg News ahead of Commerce Department data June 14. Other reports may show inflation eased and manufacturing expanded.

Treasury 10-Year Yields Hold Near Six-Month Low Before Retail Sales Data (Source: Bloomberg)
Treasury 10-year yields were six basis points from this year’s low before a report that economists say will show U.S. retail sales dropped for the first time in 11 months.

US economy at tipping point,double-dip risk-Shiller
NEW YORK, June 9 (Reuters) - Recent housing and employment data suggests the U.S. economy is at a tipping point where a double-dip recession is possible and home prices could have much further to fall, a veteran economist said on Thursday.
Robert Shiller said the recent uptick in unemployment is not yet enough of a sign as to which way the recovery is heading. But if unemployment continues to rise in the coming months, it could suggest another recession.

Japan April Machine Orders Fall 3.3% on Month (Source: Bloomberg)
Japan’s machinery orders fell for the first time in four months in April, an indication that companies are reluctant to spend after the March 11 earthquake and tsunami.

Japanese Stocks Decline Most in a Week as Toyota Forecasts 31% Profit Drop (Source: Bloomberg)
Japanese stocks declined the most in a week after Toyota Motor Corp. said profit will fall by 31 percent this year following March’s record earthquake and after machinery orders unexpectedly fell.

Bank of Korea surprises with rate rise, eyes inflation
SEOUL, June 10 (Reuters) - South Korea's central bank raised interest rates on Friday for the third time this year, surprising financial markets, as the government warned of rising inflation risks even as growth in Asia's fourth-largest economy cools.
The Bank of Korea raised its benchmark rate  by 25 basis points to 3.25 percent, playing down growing concerns about a slowing global economy that have persuaded three major central banks in Asia to hold rates steady this month.

Short Sales Climb to 8-Month High in Hong Kong (Source: Bloomberg)
Short selling in Hong Kong has risen to the highest level since September 2010 as concerns of slowing Chinese economic growth and further monetary-policy tightening intensify, according to a report from Data Explorers. Borrowed shares have risen to 12.2 percent of stock available for lending as of June 7, compared with 8.8 percent in January, Data Explorers, a New York-based research provider, wrote in a report June 9. The increase comes as Chinese companies listed in Hong Kong, Canada and the U.S. face pressure from short sellers amid allegations of lax corporate governance and fraud.

Greek Default Would Not Destabilize the Euro, Bundesbank’s Weidmann Says (Source: Bloomberg)
Bundesbank President Jens Weidmann raised the pressure on governments to agree to a Greek bailout without the European Central Bank taking part in easing the country’s debt burden, saying the euro can withstand a default. Weidmann said the ECB was unwilling to turn its emergency bond-buying program into a “lasting institution” and that Greece’s implementation of austerity measures and asset sales was crucial to securing the handout to prevent a default. He spoke in an interview with German newspaper Welt am Sonntag.

ECB and Germany May Be Forced to Compromise (Source: Bloomberg)
The confrontation between the European Central Bank and Germany over bailing out Greece risks causing so much damage that officials may be forced to compromise. “The balance of forces in the euro zone is a little like it was in the Cold War: both sides are brandishing deterrents that would be too horrendous to use,” said Philip Whyte, a senior research fellow at the Centre for European Reform in London. “It’s all going to turn on whether you can fiddle with debt maturities without calling it a credit event.”

Euro Trades Near Two-Week Low Versus Dollar on Greek Bailout Concerns (Source: Bloomberg)
The euro traded 0.3 percent from a two-week low against the dollar after Luxembourg’s Jean-Claude Juncker said a bailout for Greece must include “voluntary” investor participation and meet the approval of central bankers.

FOREX-Euro hit by uncertainty about Greek debt aid
LONDON, June 10 (Reuters) - The euro fell against the dollar on Friday and could extend its losses as worries over Greek debt return to centre stage while investors scale back expectations of the pace of European Central Bank interest rate hikes.
Investors received mixed messages about the progress of debt assistance to Greece, with Germany sticking to its demand that private investors contribute to a second bailout even after renewed ECB opposition to any investor participation that might be deemed involuntary. 

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