Local market edges higher in early trading

March 12, 2010 By Leave a Comment

The Australian share market has open higher, after gains on international markets overnight.

At 10:15am AEDT, the All Ordinaries Index was up 10.1 points to 4,840 and the ASX 200 was 9.94 points higher at 4,829.9.

Shares in the United States closed moderately higher, with stocks in bailed-out financial companies popular among investors, who are hoping the sector is on the verge of a solid rally.

In official economic news, the US posted its largest budget deficit on record in February, as the government increased spending to help boost the economy.

The deficit came in at $US221 billion last month, compared with a deficit of $US194 billion in February last year.

The Dow Jones Industrial Average in New York gained 2.95 points to close at 10,567.33.

The S&P 500 closed 5.16 points higher at 1,145.61 and the Nasdaq Composite Index gained 18.27 points to 2,358.95.

Shares in Britain advanced 0.68 per cent, taking the market to a 20-month high.

Copper prices rose after figures from China showed the country’s exports and imports grew faster than expected in February.

British Airways gained more than 3.5 per cent, after it joined American Airlines and the Spanish carrier, Iberia in offering to give up a number of lucrative trans-Atlantic routes, to try to gain EU anti-trust immunity for their alliance.

By the close, London’s FTSE 100 was up 38.27 points to 5,640.57.

The Australian dollar has remained relatively steady from yesterday’s close and at 10.15am AEDT, it was worth 91.55 US cents.

On the cross rates it was at 67.05 euro cents; 82.88 Japanese yen; 61.12 pence Sterling; and $NZ1.30.

Spot gold had eased to $US1,107.45 an ounce.

West Texas Crude was worth $US82.06 per barrel.

The price of a barrel of Tapis crude had edged up to $US83.30.

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Negative Inflation – Deflation – Negative Inflation in India – Deflation in India – Negative Inflation in India for the first time since 1977 – 1978

June 18, 2009 By Leave a Comment

Negative Inflation – Deflation – Negative Inflation in India – Deflation in India – Negative Inflation in India for the first time since 1977 – 1978

Negative inflation or Deflation has been recorded in India for the first time since 1977-78. Inflation for week ended June 6 was at -1.61% in the 12 months to June 6,2009 compared with the previous week’s annual rise of 0.13 percent.

Experts say that this is due to the a high statistical base and effect will keep the WPI inflation in the negative zone for atleast three months.

Experts believe that going forward inflationary risks are already in sight. Oil prices have more than doubled in the last one month and also the fact that primary article prices are not showing any signs of easing. Some economists believe that by end-March 2010 inflation is expected to be between 5.5 percent to 6 percent based on the current trends.

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USD Technical Forex Analysis for Forex Traders

April 7, 2009 By Leave a Comment

The USD continued to correct higher trough today’s New York trade reaching the best levels of the day against the majors shortly after the London fix; despite the rise in the Greenback the majors held important S/R levels during the day and remains in two-way action into the close. Technical trade was the rule for the most part as the lack of economic news kept traders focused on near-time price levels with stops helping to drive most of the intraday action.

GBP never traded back to the earlier high seen in late Europe this morning of 1.4961 but retreated finding layers of stops for a low print at 1.4668 before recovering more than a full handle and settling above the 1.4700 handle. Traders note that cross-spreaders for Yen liquidating Yen crosses as well as weakness in EURO helping to drive the rate lower but Cable still held technical support at the 1.4720 area. EURO also took a dive dropping from the 1.3550 area in early trade for a low print at 1.3356 once again holding tech support ahead of the 1.3330 area; the rate also seeing liquidation from Yen crosses.

EUURO recovered back to the 1.3400 area and is trying for a close above the 1.3400 handle suggesting that the dips are being bought. Traders note that volumes were light on the move lower and there was bid interest during the fix today. The rest of the majors all held under tech resistance after trying for highs; traders note that the tech levels seen from last week are back in play across all pairs. USD/CHF high prints at 1.1409 were under the tech level of 1.1420; the rate failing to hold the 1.1400 handle by the end of the day. USD/JPY held firm making the USD at the highest levels seen since last year but off its highs; high prints at 101.46 never challenged in New York and the rate is unable to hold the 101.00 handle into the close.

USD/CAD rallied to a high print at 1.2443 before dropping back under the 1.2400 handle; a late push back to the 1.2400 handle sees the rate holding around the 1.2405 area in light trade. All the rates either held their respective 100 day MA S/R levels or their recent Fib levels suggesting that all of today’s action was dominated by short-term traders and likely will repeat tomorrow. With a light economic calendar due tomorrow and into mid-week the USD will likely remain two-way for the next 24-48 hours. Look for the Greenback to be subdued overnight and respect current ranges.

Today’s US Dollar Trading

* USD reverses off lows to make highs in New York
* Majors respect existing S/R, stops in range drive most action
* Volumes lighter with most action ahead of the London fix

Overnight Preview

* Look for the Greenback to hold existing ranges
* Volumes likely to be light

Looking Ahead to Tuesday
All times Eastern (-5 GMT)

* 10:00am USD IBD/TIPP Economic Optimism
* 3:00pm USD Consumer Credit m/m

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US stocks end positive on strong week

April 5, 2009 By Leave a Comment

New York, April 4 (DPA) US stocks made gains Friday at the close of a strong week for global markets, buoyed by some positive economic news and a comprehensive deal by world leaders to tackle the global recession.

The Dow Jones Industrial Average has climbed 21 percent over the past four weeks, its best run over that timeframe since 1933, the Wall Street Journal reported.

Friday’s gains overshadowed a dismal unemployment report in the United States. Some 667,000 jobs were shed in March and the unemployment rate climbed to 8.5 per cent, the highest level since 1983, the US Labour Department said.

The department said 5.1 million jobs have now been lost since the US recession began in December 2007, the sharpest loss since the end of World War II.

The report sent US stocks falling in the morning, but shares rallied after Federal Reserve Chairman Ben Bernanke told a North Carolina gathering that the central bank’s massive lending programmes were helping to stabilize the financial system. Financial shares gained 4.2 percent.

Leaders of the Group of 20 bloc of the world’s top industrial and emerging economies agreed Thursday to an overhaul of financial regulations and to inject more than $1 trillion into international institutions to help avert the global recession.

Some better-than-expected news from the US housing, car and manufacturing sectors this week has also led investors to speculate that the worst of the recession may be over.

The blue-chip Dow industrials gained 39.51 points, or 0.5 percent, to 8,017.59. The broader Standard and Poor’s 500 Index rose 8.12 points, or 0.97 per cent, to 842.50. The technology-heavy Nasdaq Composite Index was up 19.24 points, or 1.2 percent, to 1,621.87.

The Dow jumped 3.1 per cent on the week and the S and P 500 surged 3.3 percent. Both indexes posted their fourth-straight weekly advance and closed at their highest level since Feb 9.

The US currency dropped against the euro to 74.15 euro cents from 74.28 euro cents on Thursday. But the dollar rose against the Japanese currency to 100.32 yen from 99.46 yen.

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Oil falls below $49 in Asia amid gloomy data

April 2, 2009 By Leave a Comment

BANGKOK (AP) Oil prices slipped below $49 in Asian trade Wednesday as new signs of deterioration in the world’s three biggest economies the U.S., China and Japan undermined crude’s recent gains. Benchmark crude for May delivery fell $1.23 to $48.43 a barrel by midday in Bangkok in electronic trading on the New York Mercantile Exchange.

That fall nearly wiped out overnight gains when the contract rose $1.25 to settle at $49.66. Oil prices rebounded sharply last month rising from $40 to above $53 taking their cue from a rebound in stock markets but also defining a range that is unlikely to be broken for some time unless there’s either a significant improvement or deterioration in economic indicators.

Americans are collectively driving billions of miles less each month, and that has helped to push U.S. oil inventories to 16-year highs. On Wednesday, the government will release the latest oil inventory report, which is expected to show a build up of at least 3 million barrels.

“What the oil market wants to see is better economic news, something that would support demand. What that means in the U.S. is that the consumer needs to get back into the car.

The consumer needs to feel things are getting better,” said John Vautrain, energy analyst at consultancy Purvin and Gertz in Singapore. But the latest data on the U.S. property market suggests American consumers will remain reluctant to open their wallets, he said.

Home prices in the world’s largest economy sank by 19 percent in January, the sharpest annual fall on record, according to Standard and Poor’s/Case-Shiller index of home prices in 20 major cities. Data from Japan and China also suggested their economies the two largest in Asia have yet to see any benefit from the massive fiscal stimulus packages announced by their governments.

The contraction in China’s manufacturing which accounts for about 40 percent of the world’s third-biggest economy worsened last month, according to a key survey. In Japan, the world’s No.

2 economy, confidence at the country’s major manufacturers dived to an all-time low. Some analysts say production cuts by the Organization of Petroleum Exporting Countries have helped to stabilize the oil price, though there are still doubts about the level of compliance with the promised cuts of 4.2 million barrels a day.

Prices have plummeted from near $147 in July as the global financial crisis unfolded. Vautrain said oil is likely to continue trading within a $40 to $50 range unless there’s some significant change in the world economic outlook.

“If we saw numbers below $40, that would be remarkable. It would suggest further serious deterioration in demand.

” In other Nymex trading, natural gas for May delivery fell 3.9 cents to $3.737 per 1,000 cubic feet. In London, Brent prices fell 88 cents to $48.35 a barrel on the ICE Futures exchange.

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Odyssey of lost humpback whale melts the heart of Hong Kongers

March 20, 2009 By Leave a Comment

Odyssey of lost humpback whale melts the heart of Hong Kongers Hong Kong – A humpback whale separated from a migrating group of the marine mammals was trying to find its way out of busy shipping lanes around Hong Kong, enthralling the former British colony.

The plight of the 10-metre adult whale made television and newspaper headlines in the normally money-obsessed city, providing a welcome distraction from a tide of bleak economic news.

The humpback whale, the first ever seen in Hong Kong waters, is believed to have become separated from a group of whales migrating from the tropical waters where they spend winter to their summertime Arctic feeding grounds.

It was first spotted surfacing, raising its tail and exhaling water through its blow hole Monday and Tuesday in busy shipping lanes close to Hong Kong’s landmark Victoria Harbour.

By Wednesday, it had moved to the south of Hong Kong island and appeared to be heading eastward to the usual northerly migration route for whales in the South China Sea.

Experts said they believe once it finds its way into open waters, it should be able to rejoin other whales and continue its route toward the Arctic.

However, boatloads of sightseers with cameras have headed out to try to track the whale since it was first sighted, and an appeal has been issued for people not to sail too close to the lost whale.

There were also concerns that there is a lack of food for the whale in Hong Kong’s heavily polluted waters, where fish stocks are critically low, and the whale could weaken if it fails to find its way out soon.

Whale expert Samuel Hung Ha-yiu, head of a research centre on dolphins and porpoises, told the Hong Kong Standard newspaper that trying to guide the mammal toward open waters could be counterproductive.

“We recommend the government refrain from doing anything outside of monitoring the animal,” he said, adding that trying to usher it out would “raise its stress levels, making it aggressive and increasing the risk it could head to shore and become beached.”

Photographs of the whale, meanwhile, have been sent to experts in the United States, the Philippines and Japan to try to discover from where it has swum to reach Hong Kong waters. (dpa)

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Washington Post to trim its business coverage to overcome financial crisis

March 14, 2009 By Leave a Comment

Washington, Mar 14 (ANI): To overcome the ongoing financial crisis, The Washington Post is taking another step toward trimming the size of its newspaper.

The Post is folding its stand-alone Business section into the A section six days a week and drastically reducing the publication of stock tables.

Bringing financial news inside the A section will reduce the newspaper from five to four sections Monday through Saturday, not counting weekly feature sections such as Health, Food and Home.

Business will remain a separate section on Sunday. The changes take effect from March 30, the paper said.

“From a reader-experience point of view, having business and economic news in the A section — overlapping with national, international, political and policy news-makes a great deal of sense,” Executive Editor Marcus Brauchli said.

But he did not dispute the fact that the loss of a section would mean less prominence for many business stories.

This is the latest move by The Post, which has been shrinking its print product and its staff numbers, like most newspapers across the US.

Earlier, The Post eliminated the Sunday Source and Book World sections and combined the Sunday Arts and Style sections.

In place of the weekly Washington Business section on Mondays, Brauchli plans a daily half-page of stories devoted to local business matters.

The changes will save The Post money on newsprint costs, Brauchli said, but will not affect the space devoted to national and foreign news in the A section. (ANI)

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US stocks soar despite depressing economic data

October 30, 2008 By Leave a Comment

US stocks soar despite depressing economic data Washington – US stock indices surged by near-unprecedented levels on Tuesday, brushing aside news that consumer confidence dipped to a record low as some investors acting on a belief that markets may be bottoming out.

Gains of more than 10 per cent by the blue-chip Dow Jones Industrial Average and the broader Standard & Poor’s 500 followed strong stock gains earlier in the day in Europe and Asia. The Dow posted its second-largest point gain in history.

Much of the rally came in the last hour of trading in New York. Some of the rosier sentiment may be coming from anticipation of a Federal Reserve meeting on Wednesday, when the US central bank is likely to further cut benchmark interest rates from their current 1.5-per-cent level.

Other investors looked to a surge in sales of commercial bonds, a means used by average companies to get quick cash infusions. The Fed began buying up commercial paper on Monday, under a programme announced earlier this month, as part of an unprecedented effort to get credit flowing through the economy.

Yet the stock surge came amid more bleak economic news. The private Conference Board reported its consumer confidence index fell to 38 in October, compared to 61.4 in September. It was the lowest level ever recorded and the third-largest one-month drop.

The housing market at the centre of the credit crisis also showed few signs of slowing its decline. Home prices in the 20 largest US cities fell by 16.6 per cent in August compared to a year earlier, according to the S&P/Case Schiller Index, the largest drop since annual figures were first compiled in 2001.

The blue-chip Dow soared 889.35 points, or 10.88 per cent, to 9,065.12. The broader S&P 500 surged 91.59 points, or 10.79 per cent, to 940.51. The technology heavy Nasdaq Composite Index leapt 143.57 points, or 9.53 per cent, to 1,649.47.

The surges erased nearlly all losses that investors sustained over the last six sessions on the US stock market. The Dow industrials remain down more than 30 per cent and the S&P 500 more than 35 per cent since the start of 2008.

On currency markets, the dollar rallied from a 13-year low against the Japanese currency, trading at 97.7 yen compared to 93.06 yen on Monday. The US currency fell against the euro to 78.64 euro cents from 80.04 euro cents on Monday. dpa

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