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STI vs DOW
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Pinnacle
Master |
06-Aug-2007 21:59
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No Major announcement on US economy/trade data, so hopefully tonight can have a peaceful uptrend. But look out on the 8Aug. US productivity and consumer credit will be announced. So stay alert. |
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tanglinboy
Elite |
06-Aug-2007 21:35
Yells: "hello!" |
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Dow is up 80 points now. I think this will give some relief to STI tommorow. | |
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Pinnacle
Master |
06-Aug-2007 13:40
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Have to depend on how well Euro market open today to see whether can save some ground. Else.... |
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mirage
Veteran |
06-Aug-2007 13:25
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QUOTES: Stock markets across Asia tumbled Monday, dragged down by Wall Street's sharp decline Friday as investors continued to fret about the growing problems in the US credit markets. The Singapore Straits Time Index led the decline, shedding 3.7 percent of its value in the morning session. Banks were among the worst hit as players dumped stocks in the sector amid worries over exposure to collateralized debt obligations, which are securities backed by bonds and loans and which could include US subprime mortgages. Banks have been downplaying their exposure to the US credit crisis, but late last week, DBS Group Holdings, the biggest lender in Singapore, said it has exposure of about 850 million US dollars. It dismissed the sum as insignificant relative to its capital position and said it's comfortable with its investment portfolio. United Overseas Bank is reported to have exposure of less than 500 million Singapore dollars while Oversea China Bank has about 600 million dollars at risk. Other stock indexes were also hit hard. In Hong Kong, the Hang Seng was last down 2.4 percent, Australia's S&P/ASX 200 fell 2.1 percent, South Korea's benchmark, the KOSPI, was down 1.8 percent, Taiwan's Taiex was off 1.6 percent and Thailand's SET index slumped 2.8 percent. In Japan, the Nikkei 225 index ended the morning session down 148.16 points or 0.9 percent at 16,831.70, well off a low of 16,675.39 hit early in the day. Traders said a weakening yen had helped the market trim its losses, raising interest in big exporters such as Toyota. Elsewhere, the Kuala Lumpur composite index fell 2.7 percent, the Jakarta composite index slid 4.2 percent and Manila's composite index ended down 2.8 percent to its lowest level in more than three months. Wall Street plunged anew Friday, sending the Dow Jones Industrial Average down 281 points or 2 percent after comments from a major investment bank exacerbated the market's fears of a widening credit crunch. The drop came after two volatile weeks on Wall Street where investors have been spooked by growing numbers of bad home loans and rising risk aversion that it has made it harder to raise money to finance leveraged buy-outs. This time, the catalyst for a sharp skid was Bear Stearns Cos Chief Financial Officer Sam Molinaro, who described the turmoil in the credit market as the worst he'd seen in 22 years. Standard & Poor's cut its outlook on Bear Stearns credit to negative due to the impact of bad loans on some of its investment funds. A weaker-than-expected jobs report for July also weighed on sentiment. However, Citigroup said Monday that the recent selloff in Asian markets is overdone and that regional banks, insurance companies and non-bank financial institutions should be able to manage their exposure to the US crisis. "The impact of US subprime asset-quality problems and falling prices of structured products such as collateralized debt obligations (CDO), mortgage-backed securities (MBS) and asset-backed securities (ABS) on Asian financials should be manageable," Citigroup analyst Tracy Yu said in a note to clients. Taiwan's insurance companies and Singapore's banks have the highest CDO exposure, she said. "We believe Hong Kong and Chinese banks and insurers have small exposure to CDO, MBS and ABS," Yu said. Banks in Malaysia, alongside Indian and Indonesian banks are reported to have no or minimal exposure, the analyst said. Malaysia's largest lender Maybank owns credit-linked notes issued by financial institutions that have significant subprime exposure but the amount is fairly small at 60 million dollars, according to Yu. Chinese markets bucked the negative trend in the region on Monday. The Shanghai Composite Index was last up 3.5 percent, while the Shanghai A Index gained 3.5 percent. |
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Pinnacle
Master |
06-Aug-2007 10:37
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Asian stock markets slumped on Monday after downbeat U.S. economic data, including the influential non-farm payrolls report, added to wariness about further fallout from the U.S. subprime mortgage crisis. Bear Stearns "The outlook for today does not look good. On top of the worries about the exposure of funds to credit markets, now we've worries about weak U.S. economic data," said Choo Hee-yeop, deputy general manager of asset management strategy at Korea Investment and Securities. At 0025 GMT, Tokyo's Nikkei average had slid 1.6 percent with exporters such as Canon Inc. electronics components maker Kyocera and chip-tester maker Advantest Corp. further hit by a firmer yen. But Toyota Motor bucked the weaker trend, climbing 0.3 percent after posting strong quarterly results on Friday. A stronger yen and worries about U.S. consumption stemming from the subprime issue meant investors will find it hard to take a bullish stance, said Kazuhiro Takahashi, general manager of equity marketing department at Daiwa Securities SMBC. "Still, investors may buy on dips, encouraged by good earnings from companies such as Toyota. It seems unlikely the Nikkei would deviate from last week's moving range," he added. In South Korea, falls of 4.5 percent for steel maker POSCO, 1.4 percent for Samsung Electronics and 3.3 percent for top lender Kookmin Bank helped drive the benchmark KOSPI down 2.3 percent. Also under pressure, Australia's key S&P/ASX 200 index slumped 1.5 percent, as global miner BHP Billiton Last week, Macquarie Bank said two of its debt funds face losses of up to 25 percent as fallout from the global credit crunch widened. MSCI's measure of Asia Pacific stocks excluding Japan lost 1.0 percent, extending last week's 1.0 percent drop. On Wall Street, both the blue-chip Dow and tech-heavy Nasdaq Composite Index shed more than 2 percent. Data last Friday showed the U.S. unemployment rate rose to 4.6 percent in July, while the Institute for Supply Management services index fell to 55.8 from 60.7 in June. |
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timewatch
Senior |
06-Aug-2007 09:57
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Will this mean the whole week sti could be low. | |
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ten4one
Master |
06-Aug-2007 09:38
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The STI is almost the exact mirror image of DJIA! | |
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mirage
Veteran |
06-Aug-2007 09:22
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This morning STI is DOWN as much as more than 100 pts. | |
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cyjjerry85
Elite |
04-Aug-2007 16:31
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confidence is at its lowest point now....even shortists aren't guaranteed safety nowadays...one moment a particular stock plunge with the market...then later it rises...example could be Beyonics...especially for those who play on contra...please be careful k? by the way cheongwee...ya got an excellent humour comparison of the market and having sleep with a pretty woman with HIV  ...trade cautiously...better...don't do anything during this phrase |
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cheongwee
Elite |
04-Aug-2007 16:20
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ppl hate shortist..but they dont know that we have stock in the market also...what we do is actully hedging...so is shorting a sin..i am protecting my stock and profit..am i wrong?? join me short...u should know what is like come Monday....down. |
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cheongwee
Elite |
04-Aug-2007 16:16
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dont settle for short term gain that will cause u long unhappiness...it is just having slept with some pretty women look so nice and holy and then realise later that u got HIV.. The subprime havent settle yet ..short term miss is better than long term pain. |
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cyjjerry85
Elite |
04-Aug-2007 16:12
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sometimes this kinda downturn is extremely tempting for investors to jump in and bottom fish...but as we know in such a volatile market like this (especially in corrections)...the lower of the low is never made known till a clear direction is given...trading volumes will be lower in this kinda recent market structure | |
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babyletsgo
Member |
04-Aug-2007 14:35
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another wave coming killing people!! |
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mirage
Veteran |
04-Aug-2007 12:10
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QUOTES: WASHINGTON (MarketWatch) -- Could the turmoil in the markets in the past few weeks be the precursor of a full-blown credit crunch that could force the U.S. and global economies into a recession?
Some observers think that the markets are exhibiting classic signs of a so-called "Minsky moment," when overleveraged borrowers must finally pay the piper for their euphoria. The result, they say, will be a credit shortage that could bring down even innocent bystanders in their wake.
Academics, economists and money managers are all sounding the alarm. Financial markets are counting on the Federal Reserve to drop interest rates to cushion the fall, and yet senior officials at the central bank have insisted that the markets must discipline themselves.
Market professionals seem resigned that the fallout is inevitable, and has already begun with losses in several rocky sessions on Wall Street.
"The feeling I have today is that of watching a very slow motion train wreck," wrote Jeremy Grantham, chairman of GMO LLC, which manages about $150 billion in assets.
The S&P 500 index is now pricing in a recession starting in late 2007 and lasting for most of 2008, led by the financial sector, said David Bianco, chief equity strategist at UBS. "We believe the market expects this recession to slash S&P 500 [earnings per share] by about 10%," Bianco said.
Most economists don't share that view. Of the more than 50 economists surveyed by the Blue Chip Economic Indicators, (many of whom have been warning about the housing bubble for years), none predict even one quarter of negative U.S. growth over the next two years.
A growth recession, with rising unemployment along with slow growth in output and sales, "is a certainty," said Dimitri Papadimitriou, president of the Levy Economics Institute, a think tank at Bard College. That's where economist Hyman Minsky fleshed out his theories of a credit-business cycle, which emphasized a close connection between the creation and destruction of asset bubbles in financial markets and the timing of economic expansions and recessions.
Hard landing?
The last two recessions, Papadimitriou said, follow the Minsky analysis to a "T." In the current cycle, he said, "economic activity will decline. The only debate is whether it'll be a soft landing or a hard landing."
While the stock market's gyrations are proof that credit-crunch fears are on the mind of many investors, thus far only a minority of market participants say they believe it will happen. Most seem to think it's far-fetched, largely because the global economy is strong, with ample reserves of liquidity.
"I think the market wants to believe that we're pretty much done with the shakeout, that the economy has been OK, and that the impact is more of a financial-related impact than an economic impact," said Paul Nolte, director of investments at Hinsdale Associates. "As long as those economic numbers stay solid, then we're fine."
Despite some signs that the carnage in the subprime sector has already slowed consumer spending growth, the problem is still mostly a financial one, said Tony Crescenzi, chief bond market strategist for Miller Tabak & Co., who asserts that corporations still have a ready source of funding for projects that will help the economy grow.
The loss of funding for the leveraged buyouts is a "yawn." Crescenzi said. "Good riddance to LBOs," which add no value to the economy except in the very long run.
In a research note to clients this past week, Crescenzi pointed to several factors that "weigh against the possibility of a broader credit crunch and make it likely that market turmoil will subside and credit formation will return to levels sufficient to power continued economic expansion."
Among Crescenzi's positive factors: Corporations are flush with cash and other highly liquid assets, some $1.7 trillion by one account. Banks are well capitalized. Money-supply growth rates are strong worldwide.
Still, even a skeptic such as Jay Bryson, global economist for Wachovia, acknowledges that "there is a significant risk that credit availability could become seriously impaired."
In a genuine credit crunch, Bryson explained, lenders broadly curtail credit - including for well-qualified borrowers. In such a scenario -- even if interest rates were to come down - the supply of credit wouldn't match the level of demand.
"Credit is the mother's milk of economic expansion," said Mark Zandi, chief economist for Moody's Economy.com.
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mirage
Veteran |
04-Aug-2007 12:05
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Come Monday 6.8.2007, STI will be a SEA of RED. The BEAR has ARRIVED. !!!!!! !!!!! !!!!!!!!! QUOTES: NEW YORK (MarketWatch) -- U.S. stocks plunged Friday, with credit concerns and a weak jobs report driving a sell-off that marked the Dow's third worst day of the year and steep weekly losses for the broader market.
Already on the decline, the pace of the sell-off quickened after a Bear Stearns Cos. conference call about the impact of bad home loans on its funds failed to reassure investors.
"They tried to put their best face on the situation but the market wasn't convinced," said Mike Malone, trading analyst at Cowen & Co.
The Dow Jones Industrial Average ($INDU :
Dow Jones Industrial Average
Last: 13,181.91-281.42-2.09%
4:30pm 08/03/2007 Delayed quote data Sponsored by: The S&P 500 ($SPX :
S&P 500 Index
Last: 1,433.06-39.14-2.66%
4:59pm 08/03/2007 Delayed quote data Sponsored by: Nasdaq Composite Index
Last: 2,511.25-64.73-2.51%
8:00pm 08/03/2007 Delayed quote data Sponsored by: Dow loss leaders include American Express Co. (AXP :
American Express Company
Last: 57.49-3.42-5.61%
8:05pm 08/03/2007 Delayed quote data Sponsored by: alcoa inc com
Last: 36.18-1.70-4.49%
8:04pm 08/03/2007 Delayed quote data Sponsored by: Volume at the New York Stock Exchange surpassed 2 billion, with declining stocks outpacing advancers six to one.
At the Nasdaq, more than 2.5 billion shares were exchanged, with decliners ahead of advancing stocks six to one.
"It wasn't long ago that Fridays were good in anticipation of more [leveraged buy-outs] and [mergers & acquisitions] over the weekend. Now there has been a shift in sentiment, with fear of bad news coming out over the weekend," said Malone.
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