DJIA chart reading : downside biased.
Hang Seng chart reading : correction range bound downside biased.
Euro again under pressure in Asia; gold gains
SINGAPORE, June 15 (Reuters) - The euro came under fresh pressure in Asia on Wednesday as worry about euro zone debt intensified, prompting a move away from riskier assets which helped gold extend gains.
Asian stocks outside Japan were largely flat. Markets generally opened higher as positive data from the world's two largest economies encouraged investors to buy into growth-sensitive assets.
Asian Stocks Slump on Greek Debt, U.S. Economy (Source: Bloomberg)
Asian stocks fell, setting the region’s key benchmark index on course for a seventh straight weekly drop, on concern that debt-ridden Greece will default and as reports showed the U.S. economy is cooling. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company by sales, sank 1.3 percent in Sydney, and Rio Tinto Group, the second largest, slid 1.4 percent as oil and copper prices slid in New York. Toyota Motor Corp. (7203), the largest global carmaker, percent in Tokyo retreated 0.9 percent. Samsung Electronics Co., which gets most of its revenue overseas, lost 1.3 percent in Seoul.
Stocks Slump on Concern Economic Recovery Slowing; Euro Weakens on Greece (Source: Bloomberg)
U.S. stocks sank the most in two weeks, almost erasing the 2011 gain for the Standard & Poor’s 500 Index, and the euro slid the most in more than a month amid rising concern that Greece will default and evidence that the American economy is slowing. Treasuries rallied. The S&P 500 fell 1.7 percent to a three-month low of 1,265.42 at 4 p.m. in New York, trimming its year-to-date gain to 0.6 percent, and the Stoxx Europe 600 Index closed down 1.1 percent. The euro lost 1.9 percent to $1.4166 and the cost of insuring Greek and Portuguese debt climbed to records. Oil sank to the lowest price since February as the S&P GSCI Index of commodities plunged 3.4 percent. The Dollar Index surged the most in 10 months, 10-year Treasury yields fell below 3 percent and two-year rates dropped the most since April.
International Demand for U.S. Assets Rises, Led by Longer-Term Securities (Source: Bloomberg)
Global demand for U.S. stocks, bonds and other financial assets rose in April from a month earlier, as China increased its holdings of Treasuries after five months of declines, the Treasury Department reported. Net buying of long-term equities, notes and bonds totaled $30.6 billion during the month compared with net buying of $24 billion in March, according to statistics issued today in Washington. Including short-term securities such as stock swaps, foreigners purchased a net $68.2 billion, less than net buying of $127.1 billion the previous month.
Consumer Prices in U.S. Increase More Than Estimated on Raw-Material Costs (Source: Bloomberg)
The cost of living in the U.S. rose more than forecast in May as prices for everything from autos to hotel rooms climbed, signaling raw-material expenses are filtering through the economy.
Homebuilder Confidence in U.S. Slides to Nine-Month Low on Sales Outlook (Source: Bloomberg)
Confidence among U.S. homebuilders slumped in June to the lowest level in nine months as executives turned more pessimistic on the outlook for sales, a sign that any pickup will take time to develop. The National Association of Home Builders/Wells Fargo sentiment index unexpectedly fell to 13 from 16 in May, the biggest drop in a year, data from the Washington-based group showed today. The median forecast of economists surveyed by Bloomberg News projected it would hold at 16.
Bernanke warns of crisis if US debt limit not raised
WASHINGTON, June 14 (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke warned on Tuesday that a failure to lift the government's $14.3 trillion debt ceiling risks a potentially disastrous loss of confidence in America's creditworthiness.
In comments that could give fresh impetus to talks on raising the legal limit on the nation's debt, Bernanke said the United States could lose its prized AAA credit rating and the U.S. dollar's special status as a reserve currency might be damaged if Congress fails to act soon.
China Treasuries Holdings Rise (Source: Bloomberg)
China, the largest foreign owner of U.S. government debt, added to its holdings for the first time in six months in April as economic data weakened and the Federal Reserve signaled no extension of its $600 billion purchase plan.
Japan’s Ad-Hoc Radiation Tests Raise Concerns (Source: Bloomberg)
Kimie Nozaki, a mother of three children living 60 kilometers from the crippled Fukushima nuclear reactors, said she doesn’t trust the government’s testing program for radiation-contaminated food. “Information from the government lacks detail, which makes me even more nervous,” said Nozaki, who lives in Fukushima city about 35 miles from the plant that’s been emitting radiation since March 11 in the world’s worst nuclear disaster since Chernobyl.
South Korean Won Weakens to Three-Week Low, Bonds Gain on Greece Concern (Source: Bloomberg)
South Korea’s won weakened to a three-week low and government bonds gained as the European Union struggled to contain the debt crisis in Greece, damping demand for riskier assets.
Leader of the Pheu Thai party Yingluck Shinawatra Lead in Thai Vote Unsettles Investors (Source: Bloomberg)
Left motherless at a young age, Yingluck Shinawatra says her eldest brother became like a parent to her. From college in the U.S., to running Thailand’s biggest mobile phone company and now seeking to become prime minister, Thaksin Shinawatra guided her life.
Moody's warns of French banks downgrade on Greece
June 15 (Reuters) - Moody's Investors Service on Wednesday placed France's top three banks, BNP Paribas , Societe Generale and Credit Agricole (CASA) , on review for a possible downgrade, citing the banks exposure to Greece's debt crisis.
"Today's actions reflect Moody's concerns about these banks' exposures to the Greek economy, either through direct holdings of government bonds or credit extended to the Greek private sector directly or through subsidiaries operating in Greece, a key factor for CASA and SocGen due to their local Greek banks," Moody's said in a note.
Papandreou Calls Confidence Vote (Source: Bloomberg)
Greek Prime Minister George Papandreou will reshuffle his Cabinet and seek a confidence vote today, battling to control a shrinking majority and push through austerity measures demanded by international lenders.
Greek Bank Threat is Main Stability Risk: ECB (Source: Bloomberg)
The European Central Bank said the threat of the Greek debt crisis spilling over into the banking sector is the biggest risk to the region’s financial stability. “Greece could have a contagion effect,” ECB Vice President Vitor Constancio said at a briefing in Frankfurt today, when presenting the bank’s semi-annual Financial Stability Review. “That’s the reason why we are against any sort of default with haircuts and any form of private-sector event that could lead to a credit event or a rating event.”
Greek Police Resort to Tear Gas as 20,000 Rally Against Austerity Measures (Source: Bloomberg)
Greek police used teargas to disperse protesters encircling the Parliament House in Athens as 20,000 people rallied against Prime Minister George Papandreou’s additional wage cuts and tax increases. Police fired the teargas at demonstrators who threw fire bombs and rocks at the Finance Ministry and banged on hotel shutters. Earlier, protesters rushed police guarding the parliament as union supporters joined up with demonstrators who have been camped out in front of the building for almost three weeks. Ports, banks, hospitals and state-run companies ground to a halt today as the two biggest unions went on strike.
Euro Plunges Most in Month as Greek Leader Loses Support Amid Debt Talks (Source: Bloomberg)
The euro dropped the most in almost six weeks against the dollar after the Greek prime minister’s government lost political support as the European Union struggled to break a deadlock on a second financial rescue for the nation. Europe’s shared currency fell versus most of its major counterparts, except for Sweden’s krona, Norway’s krone and Denmark’s krone, which dropped as commodity prices slumped. Demand for assets linked to economic growth also eased after reports showed slowing manufacturing in the U.S. Sterling fell versus the dollar after a report showed Britain’s jobless claims rose in May more than economists forecast.
Euro Trades Near Three-Week Low on Concern Over Greece’s Political Turmoil (Source: Bloomberg)
The euro traded 0.2 percent from a three-week low against the yen on concern a reshuffling of Greek Prime Minister George Papandreou ’s Cabinet will lead to a negotiation of the terms of the country’s rescue package.
King Defends Record-Low BOE Rate as Money Data Point to Inflation Slowdown (Source: Bloomberg)
Bank of England Governor Mervyn King said officials should continue to hold interest rates at a record low because weak growth in wages and money signal the current bout of above-target inflation will prove temporary. “Subdued rates of increase in average earnings, as well as remarkably -- some might say disturbingly -- low growth rates of broad money have provided strong signals that inflation will fall back in due course,” he said in a speech in London late yesterday. A rate increase “would have meant a weaker recovery, or even further falls in output” and “a risk of inflation falling well below the target in the medium term.”
FOREX-Euro slides on market jitters over Greece, banks
LONDON, June 15 (Reuters) - The euro fell nearly 1 percent against the dollar on Wednesday after euro zone ministers failed to reach agreement on how to tackle the Greek debt crisis and Moody's threatened large French banks with possible downgrades.
The increased investor aversion to risk triggered by the debt crisis pushed the euro close to a recent low of $1.4285 hit on the EBS trading platform and support around $1.4250 as European equities fell 0.2 percent.
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