South African Markets – Factors to watch on July 13

July 14, 2010 By Leave a Comment

July 13 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Tuesday.

- – - -

EVENTS

PRETORIA – Government auctions 1.4 billion rand of its 2020 bond ZAR207= and 700 million rand of its 2031 bond at its weekly auction.

GLOBAL MARKETS

Chinese stocks fell 2 percent on Tuesday on reports that Beijing will not relax tougher property measures any time soon, weighing on the Australian dollar and curbing early gains in Asian shares. [MKTS/GLOB]

SOUTH AFRICAN MARKETS

South African stocks fell for the first time in five sessions on Monday after a technical glitch delayed the opening of trade by 90 minutes.

The rand weakened slightly against the dollar, with market players citing few incentives to trade, given the slack summer volume, while South Africa’s finance minister defended the government’s flexible exchange rate policy.

The JSE Top-40 index of blue chips .JTOPI edged down 0.4 percent to 24,193.39, and the broader All-Share index gave up 0.3 percent to 27,192.31. [ID:nLDE66B1UY]

GOLD XAU=

Gold clawed back near $1,200 per ounce on Tuesday on light physical buying, but further gains were capped by investor caution ahead of the earnings season and firmness in the dollar. [GOL/]

WALL STREET

Caution prevailed in the U.S. stock market on Monday, with indexes edging higher as investors kept bets to a minimum in front of earnings.

The Dow Jones industrial average .DJI added 18.24 points, or 0.18 percent, to end at 10,216.27. The Standard & Poor’s 500 Index .SPX edged up just 0.79 of a point, or 0.07 percent, to 1,078.75. The Nasdaq Composite Index .IXIC gained 1.91 points, or 0.09 percent, to close at 2,198.36. [.N]

EMERGING MARKETS

For the top emerging markets news, double click on [nTOPEMRG]

- – - -

Some of the main stories out of the South African press:

BUSINESS DAY

- Secrecy bill gives state companies “unfair edge”

- Discovery sees U.S. health opportunity

- Vodacom (VODJ.J) traffic rises 40 percent

BUSINESS REPORT

- Cold spells trouble for food: prices to rise sharply as farmers struggle with frost, high input cots and a tough market

- Economists lean towards rate cut

(Reporting by Tiisetso Motsoeneng)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

South African Markets – Factors to watch on June 14

June 15, 2010 By Leave a Comment

June 14 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Monday.

- – - -

GLOBAL MARKETS

Asian stocks rose to a one-month high on Monday, led by a rally in the technology sector, while the euro rebounded in thin trade, squeezed higher by dealers closing out of bets against the currency. [ID:nSGE65D03W]

SOUTH AFRICAN MARKETS

South Africa’s rand weakened against the dollar on Friday and stocks retreated from their highest level in a week after disappointing U.S. retail sales data dragged global markets lower.

Trading in South Africa was thin as the World Cup kicked off in Johannesburg with a match between the hosts and Mexico.

At 1522 the rand ZAR=D3 traded at 7.7278 to the greenback, 0.47 percent weaker than its previous 7.6920 close in New York.

The Johannesburg JSE’s blue chip Top-40 index .JTOPI slipped 0.83 percent to 23,990.30, while the broader All-share index fell 0.68 percent to 26,949.81. [ID:nLDE65A1SU]

GOLD XAU=

Gold rose further on Monday as investors bet a rebound in the euro could be short-lived and concerns about a global economic recovery lingered.

Although jewellers may buy gold on dips, the metal was likely to trade in range unless it passes key resistance around $1,250 an ounce. Gold struck a record at $1,251.20 last week on fears the euro zone’s sovereign debt crisis may spread. [GOL/]

WALL STREET

U.S. stocks rose in a late rally on Friday as a strong forecast from a chip maker lifted tech shares and helped alleviate concerns about the economy’s health after an unexpected drop in retail sales.

The Dow Jones industrial average .DJI gained 38.54 points, or 0.38 percent, to 10,211.07. The Standard & Poor’s 500 Index .SPX rose 4.76 points, or 0.44 percent, to 1,091.60. The Nasdaq Composite Index .IXIC climbed 24.89 points, or 1.12 percent, to 2,243.60. [.N]

EMERGING MARKETS

For the top emerging markets news, double click on [nTOPEMRG]

- – - -

Some of the main stories out of the South African press:

BUSINESS DAY

- Pick n Pay’s (PIKJ.J) pyramid structure under fire

- Fifa to probe transport as thousands stay away

BUSINESS REPORT

- Eskom scores a reprieve for Cup

- Central Rand Gold (CRGJ.J) accused of voodoo as goat and cow are sacrificed

THE STAR

-Gautrain a roaring success

(Reporting by Tiisetso Motsoeneng)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Stocks look to Europe and U.S. economy

June 14, 2010 By Leave a Comment

(Reuters) – Stock investors will keep a close eye on Europe this week, looking for signs the debt crisis may be stabilizing, while industrial production, housing starts and inflation data may offer more clues on the U.S. economic outlook.

On Friday, an official said the European Union has reached agreement with Greece on how to move forward with pension reform, while Spain’s economy ministry said it has not made and will not make a request for economic aid from the EU.

Market sentiment has been plagued for weeks by worries that European debt problems, including those in Greece, Spain and Hungary, could affect the global economy.

The Standard & Poor’s 500 index .SPX is now down 10.3 percent from its April 23 closing high for the year, and considered in correction territory.

“We’ve gone through a period of extreme nervousness … and problems haven’t gone away, but I think right now, global investors are little less jittery,” said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

The Chicago Board Options Exchange’s Volatility Index .VIX or VIX, a measure of Wall Street’s anxiety, slid 5.82 percent to end at 28.79 on Friday after rising more than 20 percent a week ago.

The three major U.S. stock indexes finished with gains for the week, with the Dow Jones industrial average .DJI up 2.8 percent, the S&P 500 up 2.5 percent and the Nasdaq Composite Index .IXIC up 1.1 percent.

“I will be looking to see if the euro holds gains that we saw in the last couple of days,” Dickson said.

The euro fell against the dollar on Friday. But that was its first daily decline since Monday, when it hit $1.1876 — its lowest level since 2006.

HOUSING STARTS, PPI AND CPI

Wall Street will keep a weather eye this week on the recovery in the U.S. housing sector, still deemed fragile with the expiration of a federal tax credit for home buyers.

U.S. housing starts and building permits for May will be released on Wednesday. Economists polled by Reuters forecast that housing starts will slip to an annual pace of 650,000 units in May from April’s pace of 672,000 units.

Analysts said, however, that much of the week’s economic news could be less troubling for the market.

“I think the take-away for investors will be that the economy continues to expand, albeit at a very slow pace and inflation remains very benign,” said Hugh Johnson, chief investment officer at Johnson Illington Advisors in Albany, New York.

The data could show “that the concerns should be about deflation, not inflation,” he said.

Both the Producer Price Index and the Consumer Price Index for May are expected from the U.S. government next week.

The overall PPI for May, also due on Wednesday, is forecast to fall 0.5 percent, compared with a 0.1 percent dip in April. Core PPI, excluding volatile food and energy prices, is forecast to edge up 0.1 percent in May, compared with a gain of 0.2 percent in April.

Wednesday’s data menu will include industrial production, which is forecast to rise 0.9 percent for May, compared with a gain of 0.8 percent in April.

The overall CPI for May, due on Thursday, is seen down 0.2 percent, compared with a 0.1 percent drop in April. Core CPI for May is forecast to rise just 0.1 percent, following no change in April.

EXERCISE YOUR OPTIONS

One high-profile item on Wall Street’s agenda will be the initial public offering of the CBOE (CBOE.O), North America’s last independent major financial exchange. The IPO is expected to be priced on Monday evening, with the stock set to start trading on Tuesday. For details, see [nN11109696]

Investors will pay close attention on Wednesday when Federal Reserve Chairman Ben Bernanke speaks on financial reform.

Stocks got a boost last week after Bernanke said the economic recovery appeared to be on solid footing and he expects the economy to keep growing.

Only a handful of Standard & Poor’s 500 companies are scheduled to report financial results this week. Among them are Best Buy Co(BBY.N) and FedEx Corp(FDX.N).

This Friday marks the so-called “quadruple witching” period, a term used by professional traders for the quarterly settlement and expiration of four different types of June equity futures and options contracts.

The event, which starts on Thursday, can lead to greater volume and volatility as players adjust or exercise their derivative positions.

An early look at the soon-to-expire June open interest on the S&P 500 indicates a potential pinning at the 1,100 strike price, said Scott Fullman, director of derivative investment strategy at broker-dealer WJB Capital Group, in New York.

(Reporting by Caroline Valetkevitch; Additional reporting by Doris Frankel; Editing by Jan Paschal)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

RPT-Wall St Week Ahead: Stocks look to Europe, U.S. economy

June 14, 2010 By Leave a Comment

June 13 (Reuters) – U.S. stock investors will keep a close eye on Europe this week, looking for signs the debt crisis may be stabilizing, while industrial production, housing starts and inflation data may offer more clues on the U.S. economic outlook.

On Friday, an official said the European Union has reached agreement with Greece on how to move forward with pension reform, while Spain’s economy ministry said it has not made and will not make a request for economic aid from the EU.

Market sentiment has been plagued for weeks by worries that European debt problems, including those in Greece, Spain and Hungary, could affect the global economy.

The Standard & Poor’s 500 index .SPX is now down 10.3 percent from its April 23 closing high for the year, and considered in correction territory.

“We’ve gone through a period of extreme nervousness … and problems haven’t gone away, but I think right now, global investors are little less jittery,” said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

The Chicago Board Options Exchange’s Volatility Index .VIX or VIX, a measure of Wall Street’s anxiety, slid 5.82 percent to end at 28.79 on Friday after rising more than 20 percent a week ago.

The three major U.S. stock indexes finished with gains for the week, with the Dow Jones industrial average .DJI up 2.8 percent, the S&P 500 up 2.5 percent and the Nasdaq Composite Index .IXIC up 1.1 percent.

“I will be looking to see if the euro holds gains that we saw in the last couple of days,” Dickson said.

The euro EUR= fell against the dollar on Friday. But that was its first daily decline since Monday, when it hit $1.1876 — its lowest level since 2006.

HOUSING STARTS, PPI AND CPI

Wall Street will keep a weather eye this week on the recovery in the U.S. housing sector, still deemed fragile with the expiration of a federal tax credit for home buyers.

U.S. housing starts and building permits for May will be released on Wednesday. Economists polled by Reuters forecast that housing starts will slip to an annual pace of 650,000 units in May from April’s pace of 672,000 units.

Analysts said, however, that much of the week’s economic news could be less troubling for the market.

“I think the take-away for investors will be that the economy continues to expand, albeit at a very slow pace and inflation remains very benign,” said Hugh Johnson, chief investment officer at Johnson Illington Advisors in Albany, New York.

The data could show “that the concerns should be about deflation, not inflation,” he said.

Both the Producer Price Index and the Consumer Price Index for May are expected from the U.S. government next week.

The overall PPI for May, also due on Wednesday, is forecast to fall 0.5 percent, compared with a 0.1 percent dip in April. Core PPI, excluding volatile food and energy prices, is forecast to edge up 0.1 percent in May, compared with a gain of 0.2 percent in April.

Wednesday’s data menu will include industrial production, which is forecast to rise 0.9 percent for May, compared with a gain of 0.8 percent in April.

The overall CPI for May, due on Thursday, is seen down 0.2 percent, compared with a 0.1 percent drop in April. Core CPI for May is forecast to rise just 0.1 percent, following no change in April.

EXERCISE YOUR OPTIONS

One high-profile item on Wall Street’s agenda will be the initial public offering of the CBOE (CBOE.O), North America’s last independent major financial exchange. The IPO is expected to be priced on Monday evening, with the stock set to start trading on Tuesday. For details, see [nN11109696]

Investors will pay close attention on Wednesday when Federal Reserve Chairman Ben Bernanke speaks on financial reform.

Stocks got a boost last week after Bernanke said the economic recovery appeared to be on solid footing and he expects the economy to keep growing.

Only a handful of Standard & Poor’s 500 companies are scheduled to report financial results this week. Among them are Best Buy Co(BBY.N) and FedEx Corp(FDX.N).

This Friday marks the so-called “quadruple witching” period, a term used by professional traders for the quarterly settlement and expiration of four different types of June equity futures and options contracts.

The event, which starts on Thursday, can lead to greater volume and volatility as players adjust or exercise their derivative positions.

An early look at the soon-to-expire June open interest on the S&P 500 indicates a potential pinning at the 1,100 strike price, said Scott Fullman, director of derivative investment strategy at broker-dealer WJB Capital Group, in New York. (Wall St Week Ahead runs every Sunday. Questions or comments on this column can be e-mailed to: caroline.valetkevitch(at)thomsonreuters.com) (Reporting by Caroline Valetkevitch; Additional reporting by Doris Frankel; Editing by Jan Paschal)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

US STOCKS-Markets rise 1 percent on economic optimism

June 10, 2010 By Leave a Comment

NEW YORK, June 9 (Reuters) – U.S. stocks rose on Wednesday, with the Dow back above 10,000, as Federal Reserve Chairman Ben Bernanke’s comments about the economy and reports of greater Chinese exports spurred hopes for a global recovery.

Bernanke, appearing before the House Budget Committee, said the economic recovery appeared to be on solid footing and that while a double-dip recession “can never be entirely ruled out,” he expects the economy to continue growing. For details, see [ID:nWAL9HE68B]

“The real fear lately has been that we’re headed for a double-dip, and Bernanke has sort of taken that out of the equation,” said Andy Fitzpatrick, director of investments at Hinsdale Associates in Hinsdale Illinois.

Chinese exports surged about 50 percent in May from a year earlier, sources told Reuters. The sharp gain would suggest the risk of a Chinese economic downturn is very small. The report, which will be officially released on Thursday, fueled a rise in global markets. [ID:nTOE65805R].

“People were concerned that a slowdown in China would add to the problems facing the global economy, so this robust number is certainly encouraging,” said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville.

The Dow Jones industrial average .DJI was up 103.31 points, or 1.04 percent, at 10,043.29. The Standard & Poor’s 500 Index .SPX was up 12.33 points, or 1.16 percent, at 1,074.33. The Nasdaq Composite Index .IXIC was up 30.50 points, or 1.41 percent, at 2,201.07.

Investors could obtain more clues about the economy’s health when the Fed’s Beige Book summary of economic conditions is released at 2 p.m. (1800 GMT).

Tech lifted the Nasdaq after Texas Instruments Inc (TXN.N) said second-quarter earnings and revenue would be at the high end of its forecast on strong broad-based demand, particularly from industrial customers. [ID:nN08218836]

The stock gained 1.7 percent to $24.28 while the PHLX Semiconductor index .SOXX rose 2.2 percent.

Energy shares advanced after data from the government said crude oil inventories fell more than expected in the last week. [ID:nN0948252]. July U.S. crude futures CLc1 shot up 3.7 percent to $74.62 per barrel and the S&P index of energy shares .GSPE gained 1.5 percent.

Ciena Corp (CIEN.O) jumped 5.3 percent to $14.58 after the communications equipment maker said its second-quarter loss was narrower than expected and noted that customer spending was recovering. [ID:nN09122731]

In deal news, Allscripts-Misys Healthcare Solutions Inc (MDRX.O) agreed to buy Eclipsys Corp (ECLP.O) in a $1.3 billion deal. Eclipsys shares rose 1.8 percent to $18.85, while Allscripts fell 9.4 percent to $16.70. [ID:nLDE6580C2] (Reporting by Ryan Vlastelica; Editing by Kenneth Barry)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

GLOBAL MARKETS-World stocks, oil rise on China exports, Bernanke

June 10, 2010 By Leave a Comment

NEW YORK, June 9 (Reuters) – World stocks jumped about 1 percent and oil prices surged on Wednesday as comments by Federal Reserve Chairman Ben Bernanke and unofficial data on Chinese exports raised hopes that a global economic recovery is on sure footing.

The euro rose from multi-year lows for a second straight day, boosted by renewed optimism that Europe’s debt crisis will not put the brakes on global growth, and as traders continued to book profits following the currency’s slide.

The keener appetite for risk drove crude oil prices up 4 percent above $74 a barrel, as U.S. data that showed a hefty drawdown in crude oil inventories added to the picture of rising demand.

Chinese exports grew 50 percent in May from a year earlier, according to sources, well above expectations for growth of 32 percent. The unofficial data was seen as a sign that the economy of the world’s second-largest oil user was roaring ahead. China is to report the official export data on Thursday as part of broader trade data. [ID:nBJD003776]

Bernanke, in testimony to the U.S. House of Representatives Budget Committee, said the economic recovery appeared to be on solid footing and that while a double-dip recession “can never be entirely ruled out,” he expects the economy to continue growing. [ID:nWAL9HE68B]

“Bernanke is more positive about the economy than the consensus is, at a time when some people are starting to question whether we could get a double dip,” said Carl Birkelbach, chairman of Birkelbach Investment Securities in Chicago.

The three major U.S. stock indexes all rose more than 1 percent, and European shares snapped a three-day losing streak to close up 1.85 percent.

The Dow Jones industrial average .DJI was up 108.68 points, or 1.09 percent, at 10,048.66. The Standard & Poor’s 500 Index .SPX was up 12.74 points, or 1.20 percent, at 1,074.74. The Nasdaq Composite Index .IXIC was up 29.53 points, or 1.36 percent, at 2,200.10.

Tech lifted the Nasdaq after Texas Instruments Inc (TXN.N) said second-quarter earnings and revenue would be at the high end of its forecast on strong broad-based demand, particularly from industrial customers. [ID:nN08218836]

The stock gained 1.7 percent to $24.28 while the PHLX Semiconductor index .SOXX rose 2.2 percent.

The MSCI’s all-country world stock index .MIWD00000PUS rose 1.3 percent.

The pan-European FTSEurofirst 300 .FTEU3 index closed up 18.09 points at 998.44 points.

“It’s a relief rally. I think we’re due a technical recovery,” said Giuseppe-Guido Amato, strategist at Lang & Schwarz.

“Whether it’s a one-day wonder we don’t know. The only sure thing is high volatility. Q1 earnings were good, and Q2 may be good, but macro trumps micro now. The acceleration of the recovery is fading. There is a chance of a double dip.”

The China data, as well as a weaker dollar, helped oil and and metal prices gain, boosting commodity shares. Among gainers were miners Anglo American (AAL.L), BHP Billiton (BLT.L), Fresnillo (FRES.L), Rio Tinto (RIO.L) and Xstrata (XTA.L) and energy shares Total (TOTF.PA), Repsol (REP.MC) and StatoilHydro (STL.OL) .

BP (BP.L), however, fell 4.3 percent to its lowest close since since October 2008 as traders cited concern over its dividend payment. The company is coming under increasing pressure from U.S. politicians following an oil spill in the Gulf of Mexico.

BP is down more than 40 percent from a mid- April peak, wiping about 50 billion pounds ($72 billion) off its market capitalization.

The euro rose against the dollar for a second straight session, boosted by options-related demand and renewed market hopes that Europe’s debt crisis may not put the brakes on global growth.

The euro EUR= was up 0.57 percent at $1.204, after falling below $1.19 on Monday, its weakest since 2006. The euro has shed nearly 16 percent against the dollar so far this year.

Few were ready, however, to declare the currency’s woes over. Banks’ overnight deposits at the European Central Bank hit a record on Wednesday, highlighting widespread worries about the health of the financial system. [ID:nLDE6580FO]

Steven Butler, head of FX trading at Scotia Capital, said that while the euro in the short term could reach $1.2110, “I still think there’s downside.”

“And overall, this move over the past few months has seen new lows hit, then consolidation and a nasty bounce back before we make another assault downward,” he added.

Traders said option expiries at $1.1900 and $1.1850 added to euro demand as investors bought the currency to protect their positions.

Investors were also awaiting a European Central Bank policy meeting on Thursday to see if the ECB will announce fresh steps to ease strains from the euro zone’s debt crisis. [ID:nLDE6560K2]

The ECB is also expected to publish a new set of economic forecasts for the region that are likely to signal somewhat stronger activity, despite worries that debt problems and government austerity measures will sharply brake growth.

U.S. Treasuries fell slightly before the second installment of this week’s $70 billion worth of bond auctions.

After Tuesday’s well-received offering of three-year debt, the U.S. Treasury will sell $21 billion worth of 10-year notes at 1 p.m. (1700 GMT). Dealers usually sell ahead of offerings to clear room on balance sheets and make prices more attractive at auction.

The benchmark 10-year U.S. Treasury note US10YT=RR was down 13/32, with the yield at 3.2367 percent. The 2-year U.S. Treasury note US2YT=RR was down 2/32, with the yield at 0.766 percent. The 30-year U.S. Treasury bond US30YT=RR was down 29/32, with the yield at 4.1655 percent.

Crude oil CLc1 rose $2.69, or 3.74 percent, to $74.68 per barrel.

Risk-averse investors have streamed into gold, sending prices for the precious metal to a record high in U.S. dollars, on persistent fears that the euro zone debt problems will spread. (Additional reporting by Steven C. Johnson, Ryan Vlastelica and Burton Frierson in New York and Brian Gorman in London)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

South African Markets – Factors to watch on June 8

June 9, 2010 By Leave a Comment

June 8 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Tuesday.

Basic Materials

- – - -

GLOBAL MARKETS

Hong Kong and Shanghai stocks edged higher on Tuesday after a sell-off in the previous session, but trading in large caps was muted as investors awaited economic cues from China. [ID:nTOE657032]

SOUTH AFRICAN MARKETS

South African stocks fell for the third straight session on Monday, tracking global equities as worries over the U.S. economy unnerved investors, while the rand steadied but remained vulnerable to risk aversion. [.J]

GOLD MINERS

Australia’s Newcrest Mining (NCM.AX) said it has finished due diligence on rival Lihir Gold (LGL.AX) and expects to complete an $8 billion acquisition to created the world’s fourth-largest listed gold miner by September. [ID:nSGE657007]

HARMONY GOLD MINING (HARJ.J)

The gold miner said on Tuesday it plans to terminate the listing of its U.S. depository receipts on the Nasdaq exchange. [ID:nWEA5204]

MAIZE DATA

South African Grain Information Service releases data on weekly maize imports and exports at 1000 GMT.

BOND AUCTION

South Africa auctions 1.5 billion rand of 2021 bond ZAR208= and 600 million of 2031 issues in weekly auction at 0900 GMT.

GOLD XAU=

Gold edged down on Tuesday, after rising 2 percent to just below a lifetime high the previous day as investors sought a safe haven from volatile currencies, falling stock markets and euro zone credit fears.

Spot gold XAU= was at $1,237.75 an ounce by 0526 GMT, down 30 cents from New York’s notioncal close on Monday. [GOL/]

WALL STREET

U.S. stocks fell on Monday, taking the S&P 500 to its lowest close in seven months, as industrials and technology shares fell and investors remained cautious following last week’s discouraging payrolls data.

The Dow Jones industrial average .DJI fell 1.16 percent to 9,816.49. The Nasdaq Composite Index .IXIC tumbled 2.04 percent to 2,173.90.

EMERGING MARKETS

For the top emerging markets news, double click on [nTOPEMRG]

- – - -

Some of the main stories out of the South African press:

BUSINESS DAY

- “Hands-on” Dames likely to be Eskom CEO

- Junior doctors may strike again over pay, conditions

- Capitec denies takeover talk as HSBC boss visits

- Metropolitan seeks African expansion

BUSINESS REPORT

- Hogan “had power” to sack chief

- SA economy fails to impress this quarter

THE STAR

- Soccer organisers did not implement Fifa’s critical measures

(Reporting by David Dolan)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

RPT-US STOCKS-Earnings, retail sales lift Wall St

April 16, 2010 By Leave a Comment

NEW YORK, April 14 (Reuters) – Wall Street rose on Wednesday and the S&P topped the key 1,200 level, lifted by solid results from Intel and JPMorgan Chase, while retail sales data gave fresh evidence the economic recovery was broadening.

Intel Corp (INTC.O), the world’s top chipmaker, rose 2.2 percent to $23.27 after its quarterly profit and sales trounced expectations, solidifying hopes for an accelerated recovery in the technology sector. For details, see [ID:nN1382801]

JPMorgan Chase & Co (JPM.N) advanced 2.8 percent to $47.17 as the bank reported a quarterly profit that topped estimates as investment banking revenue outweighed losses on consumer loans. [ID:nN14181674]

The benchmark S&P 500 finally broke through 1,200 after failing to breach the psychologically key level in recent sessions. The index has soared nearly 77 percent since a 12-year low in March 2009.

“It’s a good environment for the stock market right now because news is better than expected and there is a lot of cash on the sideline,” said Terry Morris, senior equity manager for National Penn Investors Trust Co in Reading, Pennsylvania.

“No one wants to sell because the market is trending higher and a lot of people feel like they’ve missed the boat. So anytime you see a small downdraft, the buying comes in.”

The Dow Jones industrial average .DJI gained 43.38 points, or 0.39 percent, to 11,062.80. The Standard & Poor’s 500 Index .SPX rose 5.21 points, or 0.44 percent, to 1,202.51. The Nasdaq Composite Index .IXIC climbed 20.31 points, or 0.82 percent, to 2,486.30.

Sales at U.S. retailers in March rose 1.6 percent, the Commerce Department reported, versus the forecast of a 1.2 percent increase. Separately, consumer prices were up 0.1 percent, matching expectations, the Labor Department said, giving the Federal Reserve a chance to keep ultra-low interest rates. [ID:nN14374789]

Investors are also waiting for the Federal Reserve’s Beige Book, set for release at 2 p.m. EDT (1800 GMT), for clues into when the central bank will adjust its monetary policy.

If the S&P 500 holds above 1,200, it could now find strong resistance at around 1,228, a 61.8 percent Fibonacci retracement of the October 2007 to March 2009 decline, according to Reuters data. The Fibonacci number is a widely used technical tool that can help identify the point at which asset prices will reverse. (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

US STOCKS-Earnings, retail sales lift Wall St

April 16, 2010 By Leave a Comment

NEW YORK, April 14 (Reuters) – Wall Street rose on Wednesday and the S&P topped the key 1,200 level, lifted by solid results from Intel and JPMorgan Chase, while retail sales data gave fresh evidence the economic recovery was broadening.

Intel Corp (INTC.O), the world’s top chipmaker, rose 2.2 percent to $23.27 after its quarterly profit and sales trounced expectations, solidifying hopes for an accelerated recovery in the technology sector. For details, see [ID:nN1382801]

JPMorgan Chase & Co (JPM.N) advanced 2.8 percent to $47.17 as the bank reported a quarterly profit that topped estimates as investment banking revenue outweighed losses on consumer loans. [ID:nN14181674]

The benchmark S&P 500 finally broke through 1,200 after failing to breach the psychologically key level in recent sessions. The index has soared nearly 77 percent since a 12-year low in March 2009.

“It’s a good environment for the stock market right now because news is better than expected and there is a lot of cash on the sideline,” said Terry Morris, senior equity manager for National Penn Investors Trust Co in Reading, Pennsylvania.

“No one wants to sell because the market is trending higher and a lot of people feel like they’ve missed the boat. So anytime you see a small downdraft, the buying comes in.”

The Dow Jones industrial average .DJI gained 43.38 points, or 0.39 percent, to 11,062.80. The Standard & Poor’s 500 Index .SPX rose 5.21 points, or 0.44 percent, to 1,202.51. The Nasdaq Composite Index .IXIC climbed 20.31 points, or 0.82 percent, to 2,486.30.

Sales at U.S. retailers in March rose 1.6 percent, the Commerce Department reported, versus the forecast of a 1.2 percent increase. Separately, consumer prices were up 0.1 percent, matching expectations, the Labor Department said, giving the Federal Reserve a chance to keep ultra-low interest rates. [ID:nN1437478]

Investors are also waiting for the Federal Reserve’s Beige Book, set for release at 2 p.m. EDT (1800 GMT), for clues into when the central bank will adjust its monetary policy.

If the S&P 500 holds above 1,200, it could now find strong resistance at around 1,228, a 61.8 percent Fibonacci retracement of the October 2007 to March 2009 decline, according to Reuters data. The Fibonacci number is a widely used technical tool that can help identify the point at which asset prices will reverse. (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Strong retail sales boost Wall Street

April 10, 2010 By Leave a Comment

Stocks in the United States have finished higher, on the back of surprisingly strong March retail sales.

Top US chains reported a record increase in comparable store sales last month, which was much better than expected.

It created optimism that a rebound in consumer spending could signify strong corporate earnings, and investors snapped up shares in retailers.

Those gains managed to offset continued concerns about Greece’s high debt load, but Greek bonds and bank stocks did take a hit.

On the economic front, data showed the number of workers filing for unemployment benefits unexpectedly rose last week.

By the close of trade, the Dow Jones Industrial Average had added 29.55 points to 10,927.07.

The S&P 500 closed 3.99 points up to 1,186.44 and the Nasdaq Composite index edged up 5.65 points to 2,436.81.

Britain’s top share index posted its biggest one-day fall in six weeks, dragged down by the miners and banks.

Miners tumbled on weaker metals prices and took most of the points off the index.

The banks were hit by revised fears about Greece’s debt, with risk-sensitive banks, such as Barclays and HSBC, suffering the most.

As expected, the Bank of England kept interest rates at a record low of 0.5 per cent and the European central bank also left rates unchanged.

The FTSE 100 finished 49.36 points lower at 5,712.70.

The local share market is expected to follow Wall Street up, the Share Price Index 200 closed 27 points higher to 4,969.

Around 7:00 am (AEST) the Australian dollar was stronger at 92.93 US cents.

On the cross rates, it was worth 86.77 Japanese yen, 69.48 euro cents, 60.55 British pence and $NZ1.31.

The price of spot gold had risen to $US1,151.15 an ounce.

West texas crude oil was weaker at $US85.17 and the price of a barrel of Tapis was also lower, $US86.01.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , ,

Local shares follow Wall Street lower

April 8, 2010 By Leave a Comment

The Australian share market has opened about half a per cent lower, reflecting losses on international markets overnight.

At 10.20am AEST the All Ordinaries Index was down 23.8 points to 4,959.4 and the ASX 200 was 24.8 points lower at 4,936.1.

Stocks in the United States closed down, with investors’ ongoing concerns about Greece’s debt off-setting strong gains made after a Treasury note auction.

Stocks gained ground after solid demand at a $US21 billion Treasury auction of 10-year notes.

However, the market was unable to hold onto those gains, as Greece’s borrowing costs hit a new high overnight.

The country’s government said its banks had asked for billions of euros in support, and euro-zone states were arguing over the conditions of potential bail-out loans.

There was also a late retreat, after a top Federal Reserve official said keeping interest rates too low for too long will encourage risky financial behaviour.

His statement contradicted recent comments made by the Fed’s Chairman, Ben Bernanke about the central bank not being in any hurry to raise interest rates.

By the close of trade the Dow Jones Industrial Average had lost 72.47 points to 10,897.52.

The S&P 500 ended 6.99 points lower to 1,182.45 and the Nasdaq Composite Index edged down 5.65 points to 2431.16.

Across the Atlantic, weak miners and energy stocks dragged Britain’s share market down.

Miners were lower on the back of falling metals prices, with the demand outlook tainted by those worries about Greece.

Output in Britain’s services sector also fell during January and more than reversed the previous month’s gains.

Pharmaceutical stocks and tobacco companies did gain ground, but not enough to outweigh losses in other sectors.

Overall, volume was quite thin as many traders extended their Easter holidays.

The FTSE 100 closed 18.29 points down to 5,762.06.

The Australian dollar has not moved much from yesterday’s closing level and at 10.20am AEST it was worth 92.67 US cents.

On the cross-rates it was worth 86.46 Japanese yen, 69.48 euro cents, 60.83 British pence and $NZ1.31.

Spot gold had risen to $US 1,149 an ounce.

West Texas Crude oil had fallen more than one per cent to $US85.65 and the price of a barrel of Tapis was also lower at $US86.88.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Muted start for local stocks

March 20, 2010 By Leave a Comment

The Australian share market has opened slightly lower today, after Wall Street finished fairly mixed overnight.

At 10.15am AEDT the All Ordinaries Index was down 2.4 points to 4,875.3 and the ASX 200 was down 4.1 points to 4,859.

In the US, the Dow Jones Industrial Average gained ground for an eighth straight day, but the S&P 500 Index ended the session flat.

Boeing reached its highest level in a year during the US trading session at $US70.62 and remains among the Dow’s best performing stocks this year.

In economic news, the Philadelphia Federal Reserve Bank’s index showed factory activity in the Mid-Atlantic region expanded more than expected in March, but new orders fell.

Other figures revealed consumer prices were flat in February, backing up the Federal Reserve’s decision to keep interest rates low for an extended period.

New claims for unemployment benefits also fell last week, but not by as much as economists had expected.

By the close, the Dow was up 45.5 points to 10,779.17.

The S&P 500 closed down 0.38 points at 1,165.83 and the Nasdaq Composite Index finished 2.19 points higher at 2,391.28.

In Britain, a flat session for the banking and mining sectors off-set gains by pharmaceutical and energy stocks.

British factory orders fell faster-than-expected in March and companies were less optimistic about increasing output in the months ahead.

Analysts say that provided further evidence of the sluggish recovery the UK is making from its recession.

By the end of the session, the FTSE 100 had lost 2.01 points to close at 5,642.62.

The Australian dollar has eased from yesterday’s close and at 10.15am AEDT it was worth 92.04 US cents.

On the cross rates it was at 67.61 euro cents; 83.28 Japanese yen; 60.35 pence Sterling; and $NZ1.28.

Spot gold was slightly higher at $US1,126.40 an ounce.

West Texas Crude had eased to $US82.15 a barrel and the price of a barrel of Tapis had fallen to $US82.92.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Wall Street hits fresh 17-month high after Fed

March 17, 2010 By Leave a Comment

(Reuters) – Stocks rose to a fresh 17-month high on Tuesday after the Federal Reserve held benchmark rates near zero and maintained its pledge to keep them low for an extended period.

Asian Markets

The central bank also pointed to increased momentum in the economy’s recovery, and that, coupled with strength in Intel, helped the S&P 500 hit a fresh 17-month high.

“Although everything was expected here, it’s definitely a bullish sign that nothing negative came out of (the Fed) decision and the language as well,” said Cort Gwon, director of research and trading strategies at FBN Securities in New York.

Intel (INTC.O) ranked among the Dow’s top performers, up 4 percent at $22.01 on speculation that the world’s top chip maker is expected to release positive guidance for the current quarter. The Philadelphia semiconductor index .SOXX gained 2.7 percent.

General Electric Co (GE.N) gained 4.5 percent to $18.07 after the Dow component’s chief financial officer said he expects the company’s earnings and dividend to rise in 2011.

The Dow Jones industrial average .DJI gained 43.83 points, or 0.41 percent, to end at 10,685.98. The Standard & Poor’s 500 Index .SPX rose 8.95 points, or 0.78 percent, to finish at 1,159.46. The Nasdaq Composite Index .IXIC added 15.80 points, or 0.67 percent, to close at 2,378.01.

The S&P 500 was able to puncture 1,150, a mark it had been unable to hold above in two previous attempts, and a level strategists cited as a significant obstacle for more gains.

“Throughout the day and the past week, we’ve been breaking out of this S&P 500 trading range of 1,050 to 1,1150 — hopefully, we are breaking into a new trading range.” Gwon added.

Earlier in the session, stocks moved higher after Standard & Poor’s ended its review for a downgrade of Greece, saying the government’s recent deficit-reduction measures are supportive of the ratings. Concerns about Greek debt have been a drag on equities in recent weeks.

Data on Tuesday showed U.S. housing starts fell last month as winter storms in parts of the country disrupted home building, while a drop in import prices pointed to muted inflation pressures.

About 7.89 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, the third slowest day of 2010, and below last year’s estimated daily average of 9.65 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 11 to 4, while on the Nasdaq, nearly 17 stocks rose for every 10 that fell.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Local shares flat after Wall Street’s mixed finish

March 17, 2010 By Leave a Comment

It has been a fairly lacklustre start to trading on the Australian share market, after Wall Street experienced another mixed finish overnight.

At 10.10am AEDT the All Ordinaries Index was up 4.8 points to 4,804 and the ASX 200 was 4.9 points higher at 4,789.

The prospect of further credit tightening in China spooked investors overnight, with concerns the move could restrict growth in the global economy.

Shanghai’s main stock index fell to its lowest close in five weeks.

The United States banking sector came under pressure early in the session, after the Senate Banking Committee chairman, Christopher Dodd, released a proposed financial regulation overhaul bill.

Crude oil slipped back below $US80 per barrel, hurting energy stocks.

Investors also exercised caution in the lead up to the US Federal Reserve’s interest rate decision on Tuesday and the Bank Of Japan’s rates decision on Wednesday.

A late rally by financial stocks saw the Dow Jones Industrial Average closed up 17.46 points to 10,642.15.

The S&P 500 finished 0.52 points higher at 1,150.51 and the Nasdaq Composite Index lost 5.45 points to 2,362.21.

Weaker oil and commodity prices put pressure on the British share market overnight.

Some broker downgrades for technology firms weighed on that sector and banks were also generally weaker.

By the close London’s FTSE 100 had given up 31.80 points to 5,593.85.

The Australian dollar has been hovering just below yesterday’s closing level and at 10.10am AEDT it was worth 91.31 US cents.

On the cross rates it was at 66.77 euro cents; 82.58 Japanese yen; 60.68 pence Sterling; and $NZ1.30.

Spot gold had edged up to $US1,106 an ounce.

West Texas Crude had fallen to $US79.80 per barrel and the price of a barrel of Tapis crude was also lower at $US84.61.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Market opens little changed

March 16, 2010 By Leave a Comment

The Australian share market has opened little changed this morning, after a mixed lead from Wall Street last Friday.

About 11:00am (AEDT) the All Ordinaries Index was 16 points higher to 4,848 and the ASX 200 was also up 16 points at 4,835.

Mixed consumer and retail data saw US stocks end largely flat.

The Dow Jones gained 13 points to close at 10,625 and the S&P 500 finished steady at 1,150.

The Nasdaq Composite Index edged down 1 point to 2,368.

The big four banks all opened higher, Westpac had added 13 cents to $27.02 and ANZ was five cents higher at $24.31.

Top miners BHP Billiton and Rio Tinto were up 0.4 per cent to $42.98 and 0.9 per cent to $76.59 respectively.

Telstra was also making gains, it was up 0.33 per cent to $3.07.

The Australian dollar was up from Friday’s close to 92.75 US cents.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , , , ,

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.

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

US stocks climb on new signs that recession could be ending

June 19, 2009 By Leave a Comment

US stocks climb on new signs that recession could be endingNew York – Major US stock indices made gains for the first time this week on Thursday after a streak of reports suggested the country’s recession may be coming to an end.

The US Labour Department said in a weekly report that claims for unemployment benefits fell for the first time since January. Claims dropped by 148,000 to 6.69 million people.

The Conference Board, a private research group, said its index of leading economic indicators rose for the second straight month, climbing 1.2 per cent in May following a
1.1-per-cent rise in April.

“The recession is losing steam,” said Ken Goldstein, an economist at the New York-based Conference Board. “Confidence is rebuilding and financial market volatility is abating.”

Shares of US banks gained as Treasury Secretary Timothy Geithner defended the administration’s plans for a massive overhaul of financial regulation before Congress. Banking shares had been leading the slide for the last three days.

The blue-chip Dow Jones Industrial Average rose 58.42 points, or 0.69 per cent, to 8,555.6. The broader Standard and Poor’s 500 climbed 7.66 points, or 0.84 per cent, to
918.37. The technology- heavy Nasdaq Composite Index was little changed, down 0.34 points, or 0.02 per cent, to 1,807.72.

The US currency rose slightly against the euro to 71.94 euro cents from 71.71 euro cents on Wednesday. The dollar was up against the Japanese currency to 96.55 yen from 95.76 yen.(dpa)

Filed Under: Business News Tagged With: , , , , , , , , , , , , , , , , , , ,

US stocks gain, led by energy, banking shares

May 28, 2009 By Leave a Comment

US stocks gain, led by energy, banking sharesNew York – US stocks rose on Thursday as oil prices jumped to their highest level in six months, leading a rally in energy shares.

The price of crude oil rose above 65 dollars per barrel in New York trading before settling at 64.11 dollars – up 1.6 per cent – at the end of the session.

The banking sector posted gains as investors turned back to long- term government bonds, one day after a spike in yields was largely blamed for a sell-off on Wall Street.

The blue-chip Dow Jones Industrial Average jumped 103.78 points, or 1.25 per cent, to 8,403.8. The broader Standard & Poor’s 500 Index added 13.77 points, or 1.54 per cent, to 906.83. The technology-heavy Nasdaq Composite Index was up
20.71 points, or 1.2 per cent, to 1,751.79.

The US currency dropped against the euro to 71.67 euro cents from 72.08 euro cents. The dollar was up against the Japanese currency to 96.81 yen from 95.29 yen. (dpa)

Filed Under: Business News Tagged With: , , , , , , , , , , , , , , , , , , ,

US stocks slide amid rising borrowing costs

May 27, 2009 By Leave a Comment

US stocks slide amid rising borrowing costsNew York – US stocks fell sharply Wednesday amid a spike in long-term government bond prices, which could drive up the cost of borrowing in the wider US economy.

The yield on 10-year Treasury bonds climbed to 3.73 per cent, its highest level since November, despite efforts by the US Federal Reserve to keep yields down and encourage investment in the private sector.

Financial shares declined after a US government agency said the number of US banks threatened by collapse jumped dramatically in the first quarter.

The Federal Deposit Insurance Corporation put 305 banks on its “red list” of endangered lenders, the highest number in 15 years.

General Motors’s share price plunged another 20 per cent to 1.15 dollars after its bondholders rejected an offer to settle their debt, which is nearly certain to force the ailing US carmaker into bankruptcy by Monday.

The blue-chip Dow Jones Industrial Average fell 173.47 points, or 2.05 per cent, to 8,300.02. The broader Standard & Poor’s 500 Index fell 17.27 points, or 1.9 per cent, to
893.06. The technology-heavy Nasdaq Composite Index was down 19.35 points, or 1.11 per cent, to 1,731.08.

The US currency gained against the euro to 72.08 euro cents from 71.49 euro cents. The dollar rose against the Japanese currency to 95.29 yen from 94.99 yen.(dpa)

Filed Under: Business News Tagged With: , , , , , , , , , , , , , , , , , , , , , , , ,
« Older Posts