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U.S. stock futures key off European rally

Conference Board consumer confidence data due at 10 a.m. Eastern

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By Barbara Kollmeyer, MarketWatch

MADRID (MarketWatch) — U.S. stock market futures pointed to a higher open for Wall Street on Tuesday, taking a lead from strong gains in European markets, and bolstered by hopes for action by euro-zone officials to battle the region’s sovereign debt crisis.

Futures for the Dow Jones Industrial Average DJ1Z +1.22% rose 134 points to 11,106, while those for the S& P 500 index SP1Z +1.25% gained 14.30 points to 1,172.70. Futures for the Nasdaq 100 index ND1Z +1.24% added 26.50 points to 2,252.50.

Europe banks should copy Buffett

Francesco Guerrera on The News Hub discusses how to solve the European banks' funding crisis, and why European leaders should forget about recapitalization and instead copy Warren Buffett.

The moves came as Asia and Europe stocks both rallied, with the Stoxx Europe 600 index XX:SXXP +2.71% up 2.5% to 225.78, as battered banks like Societe Generale SA FR:GLE +8.01% and Deutsche Bank AG DE:DBK +10.08% DB +12.16% rallied 9% and 7%, respectively.

Optimism over Europe drove a late rally on Wall Street on Monday, which helped the Dow Jones Industrial Average DJIA +2.53% climb back above 11,000 for the first time in three days.

Attention will focus Tuesday on a meeting between German Chancellor Angela Merkel and Greek Prime Minister George Papandreou in Berlin to discuss Greece’s efforts to cut its deficit and secure the next round of international funding.

“Without a doubt the main focus is Europe and whether Greece can get back on track with its austerity plan and pass the proposed property tax through parliament and also the EU members vote on the [European Financial Stability Facility] proposed changes,” said Jordan Lambert, trader at Spreadex Ltd, in emailed comments.

The news regarding Europe has come thick and fast for investors in recent days. Over the weekend, news reports said officials were working on a plan to recapitalize the euro area’s banks, using leverage to bolster the EFSF, the euro-zone’s bailout fund.

Meanwhile, Lambert said the Conference Board consumer confidence index for September, due at 10 a.m. Eastern time, would be a key focus for Wall Street as well Tuesday.

“This indicator has been on the decline in recent months showing a deterioration in consumers’ outlook on the economy so any surprises here should support the day’s trend,” he said.

Ahead of that, the S& P/Case-Shiller home-price index for July is due at 9 a.m. Eastern. It comes a day after data showing a fall in the sale of new single-family homes for the fourth straight month.

Enthusiasm for equities drew investors back into gold and other base metals, with gold futures for December delivery jumping $83.30 to $1,678.30 an ounce.

Crude-oil futures for November delivery gained $2.30 to $82.54 a barrel.

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27-Sep-2011 18:37

Genting Sing / Traders Lounge - Daily opportunities for everyone

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European Shares Climb on Euro Zone Debt Plan Hopes

Published: Tuesday, 27 Sep 2011 | 5:45 AM ET

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By: Reuters

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European shares climbed to their highest in nearly a week on Tuesday on renewed hope that European policymakers will act to contain Greece's debt problems and resolve a regional debt crisis threatening to derail the world economy.

Main European Markets

Financials, previously hard hit because of their exposure to peripheral euro zone economies, were among the top gainers, with the STOXX Europe 600 banking index [.SX7P 133.03 5.11 (+3.99%) ] up 3.6 percent and insurers [.SXIP 125.67 6.01 (+5.02%) ] up 4 percent.

The indexes are still down 32 percent and 19 percent, respectively, in 2011.

" Given so much uncertainty at the moment, there is room for both pessimism and optimism. The optimists have taken the forefront on hopes that we could see European politicians getting to grips with the current situation over the coming weeks," said Keith Bowman, analyst at Hargreaves Lansdown.

" But there are still a lot of concerns. Investors remain sceptical about the success of the measures being planned to resolve the euro zone credit crisis."

Thomson Reuters Datastream data also highlighted weak investor sentiment, with the ratio of put/call open interest on the Euro STOXX 50 [.STOXX50E 2153.68 70.33 (+3.38%) ] -- down to 1.1139 to hover near a 10-month low -- showing that investors still have little faith in the rebound.

However, the FTSEurofirst 300 [.FTEU3 Loading... () ] was up 2.3 percent at 918.57 at, after hitting 921.63, the highest since September 21. It gained 1.8 percent on Monday on talk policymakers were drawing up plans to boost the size of the regional bailout fund, halve Greece's debts and recapitalise banks.

Despite the rally, the 30-day implied volatility for many European indexes rose, indicating investors' wariness of the situation.

The market awaited a policy meeting of the European Central Bank next week, with ECB officials saying on Monday they were keeping their options for a rate cut open.

There were signals the bank could start offering 12-month, limit-free loans to banks again.

Auto shares rose on hopes a solution for the euro zone crisis could bring the global economy back on track and improve demand for vehicles.

The sector index [.SXAP 253.55 11.07 (+4.57%) ] rose 4.3 percent, while Daimler [DAIGN.DE 33.69 1.545 (+4.81%) ] gained 5.1 percent after Credit Suisse upgraded its stock to " outperform" from " neutral" .

Key Technical Levels

The Euro STOXX 50 [.STOXX50E 2153.99 70.64 (+3.39%) ] the euro zone's blue-chip index, was up 2.9 percent at 2,142.57 points, after climbing to its highest in more than a week earlier in the session.

Analysts said the index was likely to stay in a 2,000-2,200 range in the coming session.

If the price stays above 2,098 -- a gap on the daily candlestick chart -- on a sustained basis, the index could test 2,200.

" It is worth noting a possible double-bottom formation on the daily chart should the price recover above 2,200, which has the measuring targets at 2,343 and 2,436.

It is important to watch the next three closes," Dmytro Bondar, technical analyst at RBS, said.

Charts indicated that if the index closed below 2,000 in coming days, the move could suggest a drop to 1,810.

Equity investors face two major headwinds -- the European sovereign debt crisis which undermines the banking sector, and the threat of a global economic slowdown, with the former affecting the banking sector and the latter hurting miners.

" While the European problem has a lower probability of materialising but a massive tail risk, the potential for a premature end to this global expansionary cycle is much more probable," said Lothar Mentel, chief investment officer at Octopus Investments, which manages nearly $4 billion.

" Long-term investors should not get too stressed by mistiming concerns, given risk assets are much, much cheaper than they have been, which is what counts rather than miraculously hitting the absolute low of markets in this cycle," Mentel said.

Europe's STOXX 600 index currently trades at 8.4 times its expected earnings, below a 10-year average of 13.2, according to Datastream.

This compares with a price-to-earnings ratio of 11 for U.S. S& P 500 index.

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27-Sep-2011 18:34

Genting Sing / Traders Lounge - Daily opportunities for everyone

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admin delete this thread pls

risktaker ( Date: 27-Sep-2011 18:33) Posted:

Jason tomorrow help me close Wilmar @ 5.40

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27-Sep-2011 18:33

Genting Sing / Traders Lounge - Daily opportunities for everyone

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Jason tomorrow help me close Wilmar @ 5.40

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27-Sep-2011 17:47

Genting Sing / Traders Lounge - Daily opportunities for everyone

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Until ur their position u have no idea what they are doing. I can tell u that they are doing very well and growing Singapore funds. Sometimes u win sometime u lose.

Joe2020 ( Date: 26-Sep-2011 16:53) Posted:

You are not the CEO of Temas** right? LOL

bladez87 ( Date: 26-Sep-2011 16:50) Posted:

after 9 months not touching stocks i think.

i decided to sell my maple ind trust.

and i managed to sell it 1.08 after a long and tough consideration that the dividend might drop if we go into crisis.

2 minutes after i sell, it went back to 1.10.

good to see i havent lost my touch

of selling at bottom and buying at peak.

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27-Sep-2011 12:13

Straits Times Index / STI to cross 3000 boosted by long-term investors

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That means we need to buy more to create the bullish sentiment :)

stoheart72 ( Date: 27-Sep-2011 12:06) Posted:

STI sentiment is still bias to the bearish side, today's raise was based on very light volumes. Seems like we wont see a strong rally at least until we see another new bottom. Staying sideline for now. Trade carefully and good luck.

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27-Sep-2011 12:04

Straits Times Index / STI to cross 3000 boosted by long-term investors

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Hehe I told gecia when to buy Liao ma last week. Sorry was busy and this week report can't be sent out. Sorr

rotijai ( Date: 27-Sep-2011 11:51) Posted:

lol..

master risktaker.. u didnt email us this week's report?

risktaker ( Date: 27-Sep-2011 11:48) Posted:

Btw ur car no 2032 right hehe came Out first priZe while ur away :) hehe remember to buy again this week.

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27-Sep-2011 11:48

Straits Times Index / STI to cross 3000 boosted by long-term investors

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Btw ur car no 2032 right hehe came Out first priZe while ur away :) hehe remember to buy again this week.

AK_Francis ( Date: 27-Sep-2011 11:40) Posted:

Ha ha, AK likes best when CNY is ard d corner, so can go back kampong to celebrate ma. Ds yr eve was on 2 Feb.

2012 eve falls on 22 Jan, Sun, Chinese Lunar Yr calander is 29, if counted correctly.

Wat d waste, no holiday in lieu, but some coy/board may give half day loh, as gesture of good will, for d hard-working n patriotic employees.

risktaker ( Date: 27-Sep-2011 11:08) Posted:

Btw if u didn't know Chinese new year is in Jan 2012. Not feb.

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27-Sep-2011 11:08

Straits Times Index / STI to cross 3000 boosted by long-term investors

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Btw if u didn't know Chinese new year is in Jan 2012. Not feb.

risktaker ( Date: 27-Sep-2011 11:06) Posted:

We will see some positive economic news in oct. As season play comes closer. :) orders are starting to flow thru now as confidence flow in the market.

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27-Sep-2011 11:06

Straits Times Index / STI to cross 3000 boosted by long-term investors

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We will see some positive economic news in oct. As season play comes closer. :) orders are starting to flow thru now as confidence flow in the market.

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27-Sep-2011 09:17

Straits Times Index / STI to cross 3000 boosted by long-term investors

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yesterday ... US market funny... their system down... most order didnt flow thru Anyway saw that ? haha

risktaker ( Date: 27-Sep-2011 08:56) Posted:

European officials are working on a detailed plan aimed at shoring up European bank stability, according to an official who spoke with CNBC’s Steve Liesman.

The plan appears to have a lot of moving parts. It would involve money from the European Financial Stability Facility (EFSF), a bailout vehicle created in 2010 to alleviate the sovereign debt crisis in Europe, to capitalize a special purpose vehicle that would be created by the European Investment Bank, a bank owned by the member states of the European Union.

The special purpose vehicle would issue bonds to investors and use the proceeds to purchase sovereign debt of distressed European states.

The hope is that this would alleviate the pressure on the distressed states and on the European banks that hold a lot of the distressed sovereign debt.

The bonds issued by the special purpose vehicle could then be used as collateral for borrowing from the European Central Bank (ECB), allowing the central bank to make loans to banks faced with liquidity shortages.

To put it more simply, banks loaded down with distressed sovereign debt would be able to sell the debt to the special purpose vehicle.

They would buy bonds of the special purpose vehicle, and those bonds could be used to access liquidity facilities from the ECB.

Although the structure is complex, the underlying result is relatively simple. Banks would essentially be allowed to exchange their sovereign debt for debt issued by a special purpose vehicle created by the European Investment Bank capitalized with funds from the EFSF.

----------- This simply boost the confidence in the market as the banks will be unloaded with the debt crisis -----------

things to watch out

1) ECB to cut interest rate to spur growth
2) Oil prices will be stable around 85 - 90 range
3) Yes we are experiencing slowdown but most BBs feel that the market are overdone

things u need to understand

1) Greek is a small economy its contribution to global economy is nothing however its debt that it has borrowed are from Italy, France etc.... thats why US is nervous. As it will pull down the whole chain.

EU has all agreed that a crisis like lehman brothers must be prevented. Thats why you see many news coming out soon....

Good Luck Trade with Care...

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