DJIA chart reading : upside biased with possible pullback correction.
Hang Seng chart reading : correction range bound little downside biased.
Asian Stocks Rise for Fourth Day on Greece Vote (Source: Bloomberg)
Asian stocks rose, driving the regional benchmark index to its longest advance since February, on optimism Greece will avoid default and after U.S. manufacturing unexpectedly expanded at a faster pace in June, lessening risk for bank earnings and exports. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s largest publicly traded bank, rose 1.8 percent in Tokyo. Toyota Motor Corp. (7203), the world’s No. 1 carmaker by market value, gained 0.9 percent. Samsung Electronics Co., an electronics maker that gets about 42 percent of sales from the U.S. and Europe, increased 2.3 percent in Seoul.
Stocks, euro hit 3-wk highs on Greek vote hopes
LONDON, June 30 (Reuters) - World stocks and the euro hit three-week highs on Thursday after Greece took a step closer to avoiding a default in the short-term.
"The main focus will shift to the implementation of the austerity plan and whether Greece is reaching its target," RBS said in a note.
U.S. Businesses Grow, Consumer Confidence Gains in Sign Growth May Pick Up (Source: Bloomberg)
Businesses in the U.S. unexpectedly expanded at a faster pace in June and consumer confidence reached a 10-week high, signs that economic growth may pick up in the second half of the year. The Institute for Supply Management-Chicago Inc.’s business barometer climbed to 61.1, exceeding the highest forecast in a Bloomberg News survey, from 56.6 in May. Readings greater than 50 signal expansion. The Bloomberg Consumer Comfort Index rose to minus 43.9 from minus 44.9.
U.S. Stocks Rally for a Fourth Day Amid Optimism Greece Will Avoid Default (Source: Bloomberg)
U.S. stocks rallied, giving the Standard & Poor’s 500 Index its biggest four-day gain since September, amid increased optimism Greece will avoid default and after American business activity improved.
US pending home sales rise, but recovery far away
WASHINGTON, June 29 (Reuters) - Pending sales of existing U.S. homes rebounded from a seven-month low in May but demand for mortgages sank last week and the market is still struggling under the weight of a glut of unsold properties.
The National Association of Realtors said on Wednesday its Pending Home Sales Index increased 8.2 percent to 88.8. Pending homes sales lead actual sales of homes by a month or two.
Geithner to Consider Leaving After Debt Debate (Source: Bloomberg)
Treasury Secretary Timothy F. Geithner has signaled to White House officials that he’s considering leaving the administration after President Barack Obama reaches an agreement with Congress to raise the federal debt limit, according to three people familiar with the matter.
Dollar Advances on Outlook for U.S. Economy; Aussie Drops on China Data (Source: Bloomberg)
The dollar rose against most of its major peers before a report that may show U.S. consumer confidence was better than previously reported, easing concern that a recovery in the world’s largest economy is slowing.
Consumer Confidence in U.S. at 10-Week High on Fuel, Bloomberg Index Shows (Source: Bloomberg)
Consumer confidence rose to the highest level in 10 weeks as falling gasoline prices provided relief to Americans contending with 9.1 percent joblessness. The Bloomberg Consumer Comfort Index increased to minus 43.9 for the period ended June 26 after dropping to minus 44.9 the prior week. The change in the comfort gauge last week was within the survey’s margin of error of 3 points. The measure among those with a college degree or more was the least negative in more than two years.
S&P Would Lower U.S. Credit Rating to D on Failure to Increase Debt Limit (Source: Bloomberg)
Standard & Poor’s would cut the U.S. credit rating to its lowest level and Moody’s Investors Service said it will probably reduce its ranking if the government fails to increase the debt limit, leading to a default. S&P would lower its sovereign top-level AAA ranking to D, the last rung on its scale if the U.S. can’t pay its debt, John Chambers, chairman of the company’s sovereign rating committee, said today. Moody’s said it would probably assign a position in the Aa range, or within three steps of its highest level.
China’s Manufacturing Growth Cools (Source: Bloomberg)
A Chinese manufacturing index fell to the lowest level since February 2009, signaling that the world’s second-biggest economy is cooling as export demand weakens and the government reins in credit to control inflation. The Purchasing Managers’ Index was at 50.9 in June compared with 52 in May, the China Federation of Logistics and Purchasing said in an e-mailed statement today. A separate survey showed manufacturing output declined for the first time since July 2010, HSBC Holdings Plc said today. Pressure for additional monetary tightening may be easing after manufacturers’ input prices rose at the slowest pace since July 2010 in the logistics federation study. The People’s Bank of China has paused for 12 weeks in raising benchmark interest rates, the longest gap since increases began in October.
Japanese Stocks Advance for a Fourth Day on Greece Vote, U.S. Economy (Source: Bloomberg)
Japanese stocks rose for a fourth day amid optimism Greece will avoid default and after U.S. manufacturing unexpectedly expanded at a faster pace in June, easing concern the world’s largest economy is slowing.
South Korea’s Inflation Rate Breaches Central Bank Target for Sixth Month (Source: Bloomberg)
July 1 (Bloomberg) --South Korea’s inflation exceeded the central bank’s target for a sixth straight month in June, adding pressure on the bank to boost borrowing costs again even as export growth slows. Consumer prices rose 4.4 percent from a year earlier, after a 4.1 percent gain in May, Statistics Korea said today in Gwacheon, south of Seoul. Exports expanded 14.5 percent last month, the slowest pace since October 2009, missing analysts’ forecasts for a 17.6 percent gain, a separate report showed.
German Banks Reach an Agreement on Rolling Over Greek Debt, Schaeuble Says (Source: Bloomberg)
Deutsche Bank AG (DBK) and Allianz SE (ALV), Germany’s biggest bank and insurer, were among the nation’s financial firms that agreed to reinvest in Greek debt to help avoid the euro area’s first default. German banks and insurers agreed to roll over at least 2 billion euros ($2.9 billion) from Greek bonds maturing through 2014, Finance Minister Wolfgang Schaeuble said at a press conference in Berlin today. The country’s so-called bad banks will provide an additional 1.2 billion euros, he said.
Trichet Signals ECB Ready to Rise Rates As Greece Tries to Avoid Default (Source: Bloomberg)
European Central Bank President Jean-Claude Trichet signaled officials remain determined to raise borrowing costs next week even as Greece struggles to stave off a default amid violent street protests. “The monetary policy stance is still accommodative and risks to price stability are on the upside,” Trichet told lawmakers in Brussels today. “We are in a state of strong vigilance and we stand ready to act in a firm and timely manner to avoid that recent price developments give rise to broad-based inflationary pressures over the medium term.”
ECB flags July rate rise as inflation stays high
BRUSSELS, June 30 (Reuters) - The European Central Bank signalled it would raise interest rates again next week as data on Thursday showed inflation in June stabilised well above the bank's target.
The European Union's statistics office said consumer prices in the 17 countries using the euro were 2.7 percent higher in June than a year earlier, the same as in May. Economists polled by Reuters had forecast a figure of 2.8 percent.
German Unemployment Fell for 24th Month in June, Jobless Rate Held Steady (Source: Bloomberg)
German unemployment declined for a 24th straight month in June, underscoring the resilience of Europe’s largest economy amid the euro region’s debt crisis. The number of people out of work fell a seasonally adjusted 8,000 to 2.97 million, the Nuremberg-based Federal Labor Agency said today. Economists forecast a drop of 17,000, according to the median of 32 estimates in a Bloomberg News survey. The jobless rate held at 7 percent, the lowest since records for a reunified Germany began in 1991.
U.K. Consumer Confidence Declined in June on Deteriorating Economy Outlook (Source: Bloomberg)
U.K. consumer sentiment fell more than economists forecast in June, erasing part of the boost brought from public holidays as Britons lost confidence in the economy, a report by GfK NOP Ltd. showed. An index of sentiment slipped 4 points to minus 25 from May, when it increased 10 points, the London-based research group said in an e-mailed report today. All five measures of the index declined, with confidence in the economic outlook for the next year dropping 3 points to minus 18.
Papandreou Wins Vote on Second Greek Austerity Bill in Bid for More EU Aid (Source: Bloomberg)
Greek Prime Minister George Papandreou’s drive to stave off the euro area’s first sovereign default stayed on track after lawmakers backed a bill to authorize an austerity plan required to keep rescue aid flowing. The premier won the vote by 155 to 136, allowing him to implement a 78 billion-euro ($112 billion) package of tax increases and asset sales that was a condition of receiving further European Union aid. Those steps were approved in a vote yesterday which was marred by street violence as police fired tear gas on crowds. That ballot was carried by 155 votes to 138.
FOREX-Euro gains, Greek debt issue seen under control for now
LONDON, June 30 - The euro rallied to a three-week high against the dollar on Thursday, swept higher by demand from a semi-official European name and a wave of stop-loss buying and extending a rally after Greece moved a step closer to securing international aid.
The single currency jumped to a 15-month high versus sterling, also boosted after comments from European Central Bank President Jean-Claude Trichet reinforced speculation that the ECB will raise interest rates next week.
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