Tuesday, June 14, 2011

20110614 1003 Global Market Related News.

 DJIA chart reading : downside biased with possible pullback correction.
 Hang Seng chart reading : pullback correction downside biased.

Asian Stocks Swing Between Gains, Losses on Oil, Greek Rating Downgrade (Source: Bloomberg)
Asian stocks swung between gains and losses as Standard & Poor’s cut Greece’s credit rating to the lowest debt grade, feeding doubts over a global economic recovery. Japanese power companies advanced.

U.S. Stocks Rise as Merger Announcements Help Offset Worries About Economy (Source: Bloomberg)
U.S. stocks rose, rebounding from six weeks of losses, as a pickup in takeovers and the cheapest valuations in almost a year helped offset concerns about a slowdown in the economic recovery. Transatlantic Holdings Inc. (TRH), the reinsurer formerly owned by American International Group Inc., surged 9.5 percent after agreeing to merge with Switzerland’s Allied World Assurance Company Holdings AG. Timberland Co. (TBL) rallied 44 percent as VF Corp. (VFC) said it will buy the footwear maker for $1.8 billion. Halliburton Co. and Freeport-McMoRan Copper & Gold Inc. slumped at least 1.2 percent amid falling commodity prices.

Fed prepares for last spurt of easy money flood
NEW YORK, June 10 (Reuters) - The flood of Federal Reserve money that has supported Wall Street and the rest of the U.S. economy for 2-1/2 years will shrink to a trickle with the conclusion of the Fed's bond purchases announced on Friday.
The Fed said it will buy $50 billion of Treasuries, the final series of government bond purchases that marks the last phase of the $600 billion program it launched in November 2010 to prevent another recession.

US auto dealer group sees rebounding summer sales
WASHINGTON, June 10 (Reuters) - New U.S. car and truck sales are expected to lag again in June, but things should pick up in the second half of the year, the largest auto dealers group said on Friday.
Paul Taylor, chief economist of the National Automobile Dealers Association (NADA), said the group anticipates inventory shortages that slowed May sales to affect this month's results. But a turnaround should occur after that, helped by an improving credit outlook and lower gasoline prices.

Profits Seen Increasing Jobs as Earnings in U.S. Grow Fastest Since 1940s (Source: Bloomberg)
Profits at American companies are poised to be one of the few bright spots in the U.S., helping to steady the faltering recovery. Earnings will climb an average 10 percent a year through 2013, more than three times quicker than the economy, after what has already been the fastest rebound since the late 1940s, JPMorgan Chase & Co. projects. In mounting signs of confidence, Macy’s Inc. (M) has raised its annual profit forecast, Intel Corp. (INTC) and Target Corp. (TGT) increased dividends and DuPont Co. plans to invest more than $500 million to boost production.
Surging overseas sales, improving U.S. demand and the Federal Reserve’s pledge to keep interest rates close to zero for an extended period bode well for earnings, said Robert Mellman, an economist at JPMorgan who has tracked corporate profits since 1985 and published a special report May 20 on the subject. Widening margins will give businesses the means and incentive to invest and hire, paving the way for accelerating growth in the world’s largest economy, he predicted. “Corporate profits have plenty of room to run,” as “returns on investing and expanding are high,” Mellman said in a June 10 interview from New York. “This makes companies want to grow the business. As profitability remains strong, they’ll increase hiring.”

China Lending Unexpectedly Tumbles, Adding to Evidence Economy Is Slowing (Source: Bloomberg)
China’s lending tumbled in May and money supply grew at the slowest pace since 2008, adding to signs that the world’s second-biggest economy is cooling. Loans were 551.6 billion yuan ($85 billion), less than the 650 billion yuan median estimate in a Bloomberg News survey of 20 economists and 639 billion yuan a year earlier. M2, the broadest measure of money supply, rose 15.1 percent, the People’s Bank of China said on its website.

Japan reconstruction panel eyes boom in autumn
TOKYO, June 11 (Reuters) - Spending to rebuild Japan's tsunami-hit northeast will spark an economic boom later this year, generating revenues that can be used to redeem reconstruction bonds and reduce the need to rely on long-term debt, the head of a government advisory panel said.
Makoto Iokibe, chairman of the Reconstruction Design Council, also called for a mass consolidation of ports along the coast to boost the fishing industry and aggressive investment to make the region a pioneer in renewable energy development.

Greece Receives Lowest Credit Rating by S&P (Source: Bloomberg)
Greece was branded with the world’s lowest credit rating by Standard & Poor’s, which said the nation is “increasingly likely” to face a debt restructuring and the first sovereign default in the euro area’s history.

Greece Receives Lowest Credit Rating by S&P (Source: Bloomberg)
Greece was branded with the world’s lowest credit rating by Standard & Poor’s, which said the nation is “increasingly likely” to face a debt restructuring and the first sovereign default in the euro area’s history. The move to CCC from B reflects “our view that there is a significantly higher likelihood of one or more defaults,” S&P said in a statement yesterday. “Risks for the implementation of Greece’s EU/IMF borrowing program are rising, given Greece’s increased financing needs and ongoing internal political disagreements surrounding the policy conditions required.”

Trichet’s ‘Cold War’ With Germany Risks Damage That May Force 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 bounce to fade on Greek worries; stocks slip
HONG KONG, June 13 (Reuters) - The euro strengthened , though its gains appeared short-lived as major European powers continue to haggle over a fresh rescue package for Greece, while Asian stocks extended a seven-week losing streak on fears the global recovery is losing steam.
Concerns over a sputtering U.S. economic recovery, slowing growth in China and India and festering problems in the euro zone pushed the MSCI index of Asia Pacific shares outside Japan down by nearly 1 percent to a 2-1/2 month low before regaining some ground to be 0.6 percent lower.

Euro Falls Versus Yen, Dollar on Concern Greece’s Debt Crisis Will Worsen (Source: Bloomberg)
The euro fell against the yen and the dollar on concern European Union finance ministers meeting today will struggle to resolve Greece’s debt crisis.

FOREX-Euro at record low vs Swiss franc on Greek jitters
LONDON, June 13 (Reuters) - The euro hit a lifetime low against the safe-haven Swiss franc and slipped versus the dollar, as investors worried at policymakers' struggles over the Greek debt crisis cut their exposure to the common currency.
Volumes were on the lower side with many centres in Europe closed for a holiday. The cost of insuring peripheral euro zone bonds against default hit a record high, while a general lack of appetite towards riskier assets also pushed the euro lower.

No comments: