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krisluke
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23-Jun-2011 14:36
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World Market Snap ShotRed’s Bull Trader Alert: the US Fed will maintain stimulus after ending Treasury purchases US Federal Reserve officials said they will maintain record monetary stimulus to support a flagging economic recovery after completing a US$600B+ T-bond-purchase program as scheduled this month. “The economic recovery is continuing at a moderate pace, though somewhat more slowly than the committee had expected,” the Federal Open Market Committee (FMOC) said today in a statement after a 2-day meeting in Washington. The Fed policy makers reduced their economic-growth projections while raising forecasts for the jobless rate this year and next. Fed Chairman Ben S. Bernanke has said record-low interest rates are still needed to spur a recovery that remains “frustratingly slow” 2 yrs after the recession ended. Consumer spending has been held back by falling home values, accelerating inflation and an unemployment rate that rose to 9.1% last month The S& P 500 is down 5.6% since its early May highs. US stocks fell Wednesday, closing near session lows after the US Federal Reserve acknowledged the sluggish pace of the US economic recovery.  
The market was up 4  days in a row coming into Wednesday, the rally has been just OK and it sold off today on light volume.
A indicator of Pessimism: Net short positions by hedge funds on the S& P 500 have risen recently, according to Societe Generale cross-asset research. Weighing on tech, Adobe Systems Inc (NASDAQ:ADBE) shares  fell 6.3% to$30.01 a day after the software maker reported a 54%  rise in Quarterly profit, but warned of weakness in European demand. Among stock gainers, economic bellwether FedEx Corp (NYSE:FDX) rose 2.6% to 91.44 after the shipping group reported strong fourth-quarter profit and forecast  a strong Y  2012 In its statement, the US Fed, as  expected, said it will maintain interest rates at exceptionally low levels for an extended period. It also  stated it was ending its US$600B+ T-  Bond buying program at the end of this month. Trade  was reserved in the wake of the statement. Action was also subdued during Fed Chairman Bernanke’s press conference, during which he announced that the Fed now believes Y  2011 GDP will range from 2.7% to 2.9%, down from the range of 3.1% to 3.3% that was announced in April. Additionally, unemployment for Y 2011 is now expected to range from 8.6% to 8.9%, up from the range of 8.4% to 8.7%. Core PCE inflation for Y 2011 is now expected to range from 1.5% to 1.8%, up from the range of 1.3% of 1.6% that had been forecasted before. Stocks did not  react immediately to the US Fed’s revisions, as  players waited until the final hour of the session to start applying pressure. The ensuing selling effort was steady and left stocks to settle at session lows. Tech stocks and consumer discretionary stocks collectively made up the day’s worst performers. Both sectors fell 0.8%. Financials did not  do much better falling 0.7%. Not even energy stocks or basic materials plays were able to hold their gains. Instead, both sectors fell 0.4%. Some  weaker-than-expected economic data has underscored fears that the recovery is faltering, though, and raised worries about how the economy will fare without more support from the government |
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krisluke
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23-Jun-2011 14:33
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Anyone bot Supercoffee mix today ? ? ?? |
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krisluke
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23-Jun-2011 14:21
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SG Market: Spore shares are likely to open lower after Wall Street fell on Wed, weighed by the Fed's downbeat assessment of the US economy regional markets also opened weaker, with Nikkei down 0.4%. With fears of a Greek default easing, the Fed's downgraded view of the U.S economy is likely to stoke fresh worries over the global recovery, esp with no indication the Fed intends to take new steps to boost growth and jobs ahead of QE2's expiry at the end of Jun. Those worries, coupled with concerns over the effects of monetary tightening in China, are likely to weigh on the market in the near term. Analysts tip 3000 support & 3050 resistance for the STI. STX OSV may be in focus after it secured contracts worth US$218m Singtel may also attract interest after its Optus unit agreed a A$800m deal with Australia's NBN Co. YZJ also in the news after signing pact with Peter Dohle of Germany to build 8 containerships of 10k TEU capacity each. |
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krisluke
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22-Jun-2011 16:13
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Spore Market: likely to open higher after US stocks posted sharp gains Tuesday, their 4th-straight positive session thanks to easing fears over a Greek default news Greece's government survived a key vote of confidence is also likely to boost sentiment. Yday the benchmark STI closed up 1.3% at 3054. The STI is tipped to head towards, and maybe retest, the 3100 level a break above 3100 would point to a more sustainable near-term recovery. Until that happens, mkt watchers may view the recent bounce as just a technical rebound because of the heavy correction over the past 2 weeks. The STI is up 1.6% over the last two sessions, rebounding from an 8-session, 3.6% fall. Battered down property plays, including large-cap developers such as CapitaLand, have led that rebound and may remain in focus. Spore market outlook: general consensus among brokers is that the STI will end higher by yr end. CIMB highlights the Spore mkt does not look expensive at 1.6x P/B and 12.8x fwd PE on 10% EPS growth. Goldman Sachs also views Spore valuations as reasonable, albeit not low enough to counter a period of soft profit growth. Brokers still see tourism sector as one of the preferred ones that will ride out this patch of mkt uncertainty. Credit Suisse highlights that the pricing power for the tourism sector is likely to remain strong given robust demand, high utilisation rates and limited incremental capacity. Meanwhile, the 6% appreciation of the SGD against the Spore 'tourism-weighted' basket of currencies shows that the impact is not as significant as the headline SGD/USD appreciation of 14% suggests. Separately, the theme of dividend surprises was also raised, with CIMB highlighting " Spore stocks that trade > 4% yields, yet pay out < 80% of their earnings are M1, Venture, F& N and DBS. JPM highlights that the STI is usually well correlated with earnings growth trajectory, with key mkt inflection pts anticipating the earnings trend with a 6-12 mth lead historically. Barring an external shock of similar magnitude as the Asian financial crisis, the house believes its estimates for Spore's earnings trajectory, whilst decelerating, will continue to remain in growth mode in the next 2-3 yrs. CIMB, Citi and Goldman have yr-end STI tgts of 3440, 3500 and 3600 respectively. |
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krisluke
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21-Jun-2011 10:58
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Nikkei rises but caution before Fed may limit gains
Tokyo Stock Exchange building
  * Nikkei rises limited until next tankan -analyst   TOKYO, June 21 (Reuters) - The Nikkei average rose almost 1 percent on Tuesday, climbing back above 9,400 but analysts said trading would remain thin ahead of a Federal Reserve policy meeting and gains may be trimmed later in the day as concerns about the U.S. economy persist.   The U.S. economy has slowed in recent months but underlying inflation pressures are rising, and investors are keen to see the Fed's response at its meeting ending on Wednesday.   " Investors may stay on the sidelines today as they await comments by Fed Chairman Ben Bernanke after the FOMC meeting," said Hiroichi Nishi, general manager at SMBC Nikko Securities, adding that investors would also be carefully watching developments in Europe.   Euro zone finance ministers gave Greece two weeks from Monday to approve stricter austerity measures in return for more emergency loans, piling pressure on Athens to get its ragged finances in order.   The benchmark Nikkei rose 0.9 percent to 9,437.38, while the broader Topix gained 0.9 percent to 813.77.   By the midday break, 745 million shares had changed hands on the Tokyo stock exchange's main board, with the day's volume set to come in below last week's daily average of 1.82 billion shares.   Market participants said the Nikkei may stay sluggish until more trading cues come out of overseas and domestic markets.   " At least until the central bank's tankan is out (on July 1), rises are likely to be limited to around 9,500," said Kenichi Hirano, a strategist at Tachibana Securities, referring to the Bank of Japan's quarterly survey of corporate sentiment.   " The market has priced in bad sentiment for the April-June quarter, but if the outlook for July-September is bright, the market may rise further."   Shares in Japanese money manager Sparx Group jumped the most in nearly two months, adding 2.5 percent to 7,280 yen after hitting an intraday high of 7,380 yen.   The firm's founder told a Reuters summit it would raise up to $100 million over the next year in a new real estate fund to invest in companies building temporary hotels in areas hit by the March 11 earthquake and tsunami.   Furukawa Electric rose to its highest in more than a month, advancing 4.2 percent to 324 yen. The Nikkei business daily said the firm has developed a superconducting power transmission cable, opening the door to far more efficient delivery of electricity between power plants and cities.   Panasonic fell 1.1 percent to 919 yen, after it forecast its full-year operating profit would decline 11 percent to 270 billion yen ($3.4 billion) in the year to March 2012, after the earthquake and tsunami in northern Japan hit production and sales. (Additional reporting by Antoni Slodkowski Editing by Edwina Gibbs) |
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krisluke
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21-Jun-2011 10:37
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Spore Market: shares may open a tad higher after Wall Street's gains Monday following easing worries over a possible Greek sovereign default. The benchmark STI Monday closed 0.3% higher at 3014, rebounding modestly after an 8-session, 3.6% losing streak, which had taken the index into oversold territory actual resolution to the Greece debt situation and more clarity on global growth heading into 2H11. Sias says the uncertainty surrounding the Euro-debt crisis is spooking investors around the world and despite months of discussions, Euro nations are still struggling to come to a consensus on the details of the Greek bailout. Notes most investors continue to sit on the sidelines awaiting for the final outcome of this crisis... However, despite the relief from U.S. markets, trading activity is likely to remain muted as investors await an actual resolution to the Greece debt situation and more clarity on global growth heading into 2H11... Sias says the uncertainty surrounding the Euro-debt crisis is spooking investors around the world and despite months of discussions, Euro nations are still struggling to come to a consensus on the details of the Greek bailout. Notes most investors continue to sit on the sidelines awaiting for the final outcome of this crisis. Support for the STI is tipped at 3000, then 2970-2980, with resistance at 3040, then 3050. Corporate newsflow is thin. |
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krisluke
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21-Jun-2011 10:28
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SG Strategy: JP Morgan has strategy report. Note that SG mkt has factored incountry-specific earnings risks and is trading at 13.8x and 12.5x FY11E and FY12E earnings, 5-11% below the 14.5x historical average. House remains overweight on banks and property in Singapore, with underweight positions in industrials and telcos. Container Shipping: Morgan Stanley has sector report. Note fears of 3Q11 proposed rate hikes and peak season surcharges not being implemented are exaggerated and remain positive on the 2012 industry outlook and believe that fears of recovery in the developed economies rolling over and massive new ship orders impacting 2012 supply growth are unfounded. House continues to favor NOL, CSCL and Hanjin. SG Strategy: UOB Kay Hian has Strategy Report. Note that should history repeat itself, the potential downside to STI is 2,642-2,880 after the expiry of QE2. See further weakness as a buying opportunity for quality laggards. Add that the jury is still out on whether there could be another QE3 and current consensus thinking is that there is unlikely to be further quantitative easing but we cannot rule this out totally as this is dependent on the extent of US’ economic recovery….. House key top picks for 2H11 include counters that offer sustainable and high div yields which are (M1, StarHub, CDLH-T), industrial REITs (A-REIT, Cache Logistics, MIT, Sabana REIT), and quality laggard stocks (SIA Engineering, ST Engine, KepLand, OCBC, Ezra). Forecast 2011 GDP growth of 5.7% yoy and 5.0% yoy for 2012. SG Strategy: Citi has strategy report. Note that STI is -3% Quarter-to-date (QTD) and SG’s earnings revision count indicator has turned down, with negative revisions exceeding positive counts by 10%. Tip that trend should continue to be on the negative side across summer, given concerns on high energy costs and softer export data lately….. Add that SG however is at strong support levels from a valuation standpoint and should recover into 3Q11. The STI is at 13.5x PER, near to -1 SD from mean and should be a good support level for the market. House reiterate that the US is in a mid-cycle adjustment period and the softer patch of electronics exports and NODX data from Singapore should recover (and bring stocks higher) as we move into 3Q11….. House recommends switching into defensive names into with the addition of A-REIT and Singtel. Wilmar was added on back of a turnaround at its oilseeds division. Also likes WingTai, KepCorp (-5% QTD) and DBS (-4% QTD). Other notable stock highlights include SIA (for having held up well) and Genting SP (stock price has declined 9% QTD). |
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krisluke
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21-Jun-2011 07:28
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IMF Demand Fast Greece FixIMF warns “Global Spillovers” from EuroZone debt crisis The International Monetary Fund (IMF) Monday warned Europe that there could be “large global spillovers” if Euro area stakeholders fail to undertake decisive action to tackle the EuroZone sovereign debt crisis. “A broadly sound recovery continues, but the sovereign crisis in the periphery threatens to overwhelm this favorable outlook, and much remains to be done to secure a dynamic and resilient monetary union,” the IMF said in a report on EuroZone conditions. Periphery euro countries, including Greece, Spain and some other high-debt-leveled countries, are facing “daunting challenges,” said the IMF. “With deeply intertwined fiscal and financial problems, failure to undertake decisive action could rapidly spread the tensions to the core of the euro area and result in large global spillovers,” the Washington based international financial institution warned. The IMF comments came after European Union finance officials failed to resolve Greece’s sovereign debt crisis, just weeks before the EuroZone member country faces default. “The Euro area is a globally important economy,” John Lipsky, Acting Managing Director of the IMF said in a statement, “the crisis would be felt much more strongly around the world if it spread to the banks in the core of the euro area.” The 187-membered international fund cited that reasons of the debt crisis of the periphery euro countries include very high debt levels, severe competitiveness problems, and fragile banking systems. It called for “a truly cohesive approach from all euro area stakeholders” to deal the challenge. “Crucial is a determined commitment to adjustment in the program countries, including immediate and far-reaching structural reforms and an ambitious drive to open up the economy to foreign competition and foreign ownership along program commitments. Privatization will contribute to these objectives beyond helping to establish debt sustainability. But continued financial support from other euro area members are also needed, the IMF added. The fund also noted that even if the periphery crisis can be contained, a broad policy agenda lies ahead to boost growth and make Economic and Monetary Union more resilient. |
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krisluke
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21-Jun-2011 07:27
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World Market Snap ShotRed’s Bull Trader Alert: Stocks rose on Monday, as a move toward a Key technical level on the S& P 500 drew support, while the latest plan to help Greece solve its debt woes eased some investor worries. The S& P 500 is up about 22% since the end of August 2010 S& P 200-Day Moving Average 1,259 in focus DJIA up 0.7%, S& P up 0.6%, NAS 0.6% The CBOE Volatility Index .VIX, known as the VIX, fell 6.8%, its biggest drop in a month. US stocks rose Monday, on a bounce off of Key technical mark ACUR, PFE, WMT, PNC EuroZone finance ministers gave Greece 2 weeks from Monday to approve stricter austerity measures in return for another 12B Euros in emergency loans, putting pressure on Athens to get its ragged finances in order. Stocks erased early losses as the S& P 500 dipped toward 1,259.78, its 200-Day Moving Average. A drop below that level would be the 1st since September 2010. The EuroZone finance ministers expect the money, the next tranche in a 110B Euro bailout of Greece by the European Union and the International Monetary Fund, to be paid by mid-July. Greece needs the loans by then to avoid a debt default. The S& P health-care index .GSPA rose 0.9% and ranked among the session’s Top-performing sectors. The US Food and Drug Administration approved a tamper-resistant pain drug from Pfizer Inc (NYSE:PFE) and Acura Pharmaceuticals Inc (NASDAQ:ACUR). Acura shares jumped 22.5% to 4.74, while shares of Pfizer, a DJIA component, slipped 0.05% to 20.25. Wal-Mart Stores Inc (NYSE:WMT) gained 0.2% to 52.90 after the US Supreme Court ruled for the retail giant in the largest sex-discrimination lawsuit in history, saying class-action status for female employees seeking billions of dollars had been improperly granted. With European Union finance ministers calling on Greece to pass new austerity measures and the country’s prime minister losing confidence, participants were inclined to sell stocks this morning. The euro was also put under pressure it fell more than half of a percent against the greenback before it rallied back for a fractional gain. Stocks also found support as players showed a willingness to brush aside concerns related to Greece. Buying became broad in that 9 of the 10 major sectors traded with solid gains for most of the session. Financials made up the only major sector that split its time between positive and negative territory before the group settled with a slight loss. Financials recovered from morning losses for a time, but the sector was ultimately weighed down by a bevy of investment banks and diversified financial services stocks that had their targets and estimates cut by analysts at Citigroup. PNC Financial (NYSE:PNC) 56.66, -1.13 was actually one of the worst plays in the financial space following news that it will pay about US$3.5B for the US retail banking operations of RBC. An empty economic calendar may have cut into the number of cues available to traders, but that has helped direct focus toward the FOMC’s mid-week policy statement. The statement takes on added significance with the expiration of the US Fed’s second round of quantitative easing sets to expire soon. World markets are also wondering what the Fed has planned amid the precarious conditions that currently loom over countries in the EuroZone periphery. Advancing Sectors: Health Care (+1.0%), Consumer Discretionary (+0.9%), Materials (+0.8%), Industrials (+0.8%), Consumer Staples (+0.7%), Telecom (+0.6%), Utilities (+0.6%), Energy (+0.4%), Tech (+0.3%) Declining Sectors: Financials Volume and Breadth: Just 5.66B/shrs traded on the NYSE, AMEX, and NAS exchanges, compared with a daily average of 7.58B/shr. Advancers outnumbered decliner on the NYSE by about 2 to 1, and the NAS, advancers beat decliners by about 15 to 11. |
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krisluke
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21-Jun-2011 07:24
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U.S. debt talks enter make-or-break week
* Van Hollen says looking for deal by end of week
  * Kyl says he will " assess the situation" at week's end   * Stopgap measure may be necessary   By Andy Sullivan and Alister Bull   WASHINGTON, June 21 (Reuters) - U.S. lawmakers working to rein in the country's rising debt said on Monday they will have to make substantial progress this week to ensure the country retains its top-notch credit rating.   Democrats and Republicans said they face a crucial series of talks as they try to find the trillions of dollars in budget savings that will allow Congress to cover the country's borrowing needs through the November 2012 election.   " I'd say if we haven't made enough progress by the end of this week we're really going to have to reassess the situation," Republican Senator Jon Kyl told reporters.   Other Republicans have suggested Congress might have to opt for a short-term fix if the group can't reach a deal soon -- a scenario that recalls the protracted brinkmanship of a budget battle that took the government to the edge of a shutdown earlier this year.   Vice President Joe Biden is set to lead talks on Tuesday, Wednesday, Thursday and possibly Friday. Democratic Representative Chris Van Hollen said the group aimed to get a rough deal in place by the end of the week.   " We've also held open Friday for a number of hours of meetings if we're not able to get some kind of agreement in principle by the end of the week, certainly by the end of this month," Van Hollen said on the MSNBC news network.   The Treasury Department has warned the country could default on its debt if Congress doesn't raise the $14.3 trillion debt limit by Aug. 2, a scenario that could push the country back into recession and upend financial markets.   President Barack Obama and House Speaker John Boehner, the top Republican in Washington, are expected to hammer out the final terms of the deal once the group wraps up its work. The two played golf together on Saturday.   Republicans have said that any debt-limit increase must be paired with a deficit-reduction package of equal size -- at least $2 trillion to ensure Congress does not have to touch the politically toxic issue again before the elections.   STARK DIVIDE ON TAXES   Though the two sides have agreed in principle on a number of spending cuts, they still must overcome a stark divide over some of the biggest-ticket items on the ledger. Republicans have said they will not support any tax increases, while Democrats have resisted cuts to popular health programs.   Kyl outlined other elements Republicans want to see in the deal: a reduction in annual spending programs slowed growth in healthcare and other benefit costs and mechanisms to ensure Washington's resolve does not weaken in coming years.   " Unless we do those things I don't think many people on my side of the aisle are going to have an appetite for increasing the debt ceiling," he said in a speech on the Senate floor.   If the Biden group does not reach a deal soon, Congress could opt to pass a smaller package that would cover the country's borrowing needs for a month or two, requiring another painful vote. That's a prospect neither party says it wants.   " I hope we don't have to," Democratic Senator Max Baucus, a participant in the talks, told reporters. " It's far preferable if it's increased to a date past the end of 2012."   The White House is " very focused on the need to move with speed" on raising the debt ceiling, spokesman Jay Carney said.   U.S. budget deficits in recent years have hovered at their highest levels relative to the economy since World War Two. The deficit for the current fiscal year, which ends Sept. 30, is projected to hit $1.4 trillion.   Deficit-reduction efforts have been complicated in recent weeks by signs that economic recovery may be weakening. The White House has floated a payroll tax cut to spur growth, but Republicans have not been enthusiastic about the idea.   Carney said Washington will have to balance stimulus efforts with the need to set the nation's finances on a sustainable course.   " This is about achieving the right mix of decisions within a broader package, both within the deficit reduction talks and broadly going forward from there, that allow for the economy to continue to grow and create jobs," Carney said. (Additional reporting by Richard Cowan Editing by Todd Eastham) |
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krisluke
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21-Jun-2011 07:22
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HK may take more drastic steps to stem red-hot property, shares fall
* HK property market unusually hot - financial secretary
  * Analysts say subsidised housing will have limited impact   * Property sub-index at lowest in close to a year (Adds quotes, details)   By Lee Chyen Yee   HONG KONG, June 20 (Reuters) - Hong Kong's property market is " unusually strong" , with the government ready to introduce more drastic measures if necessary, Financial Secretary John Tsang said on Monday, pushing real estate shares to the lowest in almost a year.   Hong Kong, home to the world's most expensive residential and office properties, has seen housing prices rise 12.5 percent this year, surpassing 1997 peaks amid low interest rates, buying by mainland Chinese investors, and strong economic growth.   The Chinese territory, known for its towering residential buildings and high-end apartments perched on hilly terrain, has seen housing prices climb 72 percent since the start of 2009, after the global financial crisis.   Hong Kong's property stocks retreated on Monday after Tsang's comments and on media reports quoting Chief Executive Donald Tsang as saying that the government may begin a scheme for subsidised housing to increase market supply.   " Hong Kong's housing sector is unusually strong because of loose monetary policy in advanced markets such as Europe and the United States, ample liquidity, super-low interest rates and strong economic growth," Tsang said in his latest blog. " The risk of a bubble is increasing by the day."   After the midday break, the Hong Kong stock exchange's property sub-index fell 3 percent to an intraday low of 26,067.03 points, the weakest level since July 2010, underperforming the Hang Seng Index's 0.7 percent decline.   Li Ka-shing's Cheung Kong (Holdings) Ltd dropped more than 4 percent to a nine-month low and Sun Hung Kai Properties Ltd , Asia's largest property developer by market capitalisation, fell more than 3 percent to a near one-year low.   The bubbly property market in Hong Kong, home to real estate tycoons such as Li Ka-shing and Lee Shau Kee, has prompted Standard & Poor's to forecast a possible sharp correction if interest rates rise too quickly.   Media reports over the weekend said regulators might start building homes under an old home ownership scheme, leading to a 50 percent fall in transactions compared with a week ago.   The " Home Ownership Scheme" (HOS) is a government subsidised housing programme to give eligible low-income residents a chance to purchase flats at a 30 to 40 percent discount to the market price.   The government suspended the construction and sale of HOS flats in November 2002, and in 2007 resumed the sale of HOS flats that had been built but not sold.   Analysts said the scheme would have a short-term negative impact, although its effects would be limited in the longer run as Hong Kong's property bubble was in the luxury sector, where wealthy Chinese were snapping up flats for cash.   " Increasing supply for local citizens is not going to do much. We've seen prices shoot up because of overseas buyers," Wong Leung-shing, an analyst at Centaline property agency. " I won't be surprised if the government comes up with more policies targeting overseas buyers. They can take a page from what China is doing, which is to restrict the number of properties people can buy," Wong said.   Hong Kong, like most of Asia where people see property ownership as a way of amassing wealth, has implemented harsh policies over the past year, slapping high stamp duties on short-term transactions, lowering the loan-to-value ratio and pledging to increase supply.   Hong Kong Chief Executive Donald Tsang told media during a visit to Australia that home prices in Hong Kong were " quite frightening" and pledged that his administration would do more to slow the market, the South China Morning Post newspaper reported.   John Tsang told reporters on Monday that the resumption of construction of subsidised housing was in discussion and that Chief Executive Donald Tsang would address the concern in his policy speech scheduled to be delivered in the third quarter. (Additional reporting by Donny Kwok Editing by Chris Lewis) |
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krisluke
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21-Jun-2011 07:20
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Wall St extends rally on technical support
NEW YORK, June 20 (Reuters) - U.S. stocks rose on Monday, as the latest development to reduce Greece's debt helped draw in buyers and the S& P 500 touched a key support level, but anemic volume hinted the recent weakness may not be over.
  The Dow Jones industrial average gained 76.02 points, or 0.63 percent, to end unofficially at 12,080.38. The Standard & Poor's 500 Index rose 6.86 points, or 0.54 percent, to finish unofficially at 1,278.36. The Nasdaq Composite Index advanced 13.18 points, or 0.50 percent, to close unofficially at 2,629.66. (Reporting by Edward Krudy Editing by Jan Paschal) |
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krisluke
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21-Jun-2011 07:19
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Euro wavers, oil slips as Greek aid delayed
Global Markets
  * Investors grapple with how much risk Greece crisis poses   * U.S. stocks rise but European shares down on unease (Adds close of U.S. markets, updates prices)   By Herbert Lash   NEW YORK, June 20 (Reuters) - The euro wavered and oil slid on Monday as investors sought to avoid risk after European finance ministers postponed an emergency loan to Greece until the debt-strapped country approves new austerity measures.   Euro zone ministers meeting in Luxembourg gave Greece two weeks to approve stricter austerity measures in return for another 12 billion euros ($17 billion) in aid, piling pressure on Athens to get its ragged finances in order.   Still, investors grappled with whether Greece's fiscal crisis posed systemic risks. The news was initially perceived as a negative, but traders for the most part concluded Greece will obtain enough help by year's end to avert a default.   Strength in the Swiss franc suggested some anxiety even as Wall Street rose and U.S. Treasury prices ended the day little changed.   The euro slid against the Swiss franc but recouped losses against the U.S. dollar and yen, while the dollar rose slightly against a basket of major currencies. The U.S. Dollar Index rose 0.07 percent. The euro rose 0.2 percent against the dollar but fell 0.1 percent against the franc.   " The strength of the franc shows investors are very nervous right now and are skeptical about Greece getting aid," said Kathy Lien, director of currency research at GFT Forex in New York. " If they were truly optimistic, we would not see the franc continue to remain strong."   Stocks in Tokyo were poised to open higher, with the September futures contract that trades in Chicago for the Nikkei 225 up 65 points to 9,445.   The CBOE Volatility Index, known as Wall Street's gauge of market fear, slid 8.2 percent, its biggest daily percentage drop in three months. Earlier the Euro STOXX 50 volatility index, one of Europe's main gauges of investor anxiety, closed 5.3 percent higher.   " Even though the EU is talking tough, it looks like things are going to come through in terms of providing additional funding, at least through the end of this year, and probably something will come together on the broader package as well," said Peter Jankovskis, co-chief investment officer of OakBrook Investments LLC in Lisle, Illinois.   The Dow Jones industrial average rose 76.02 points, or 0.63 percent, at 12,080.38. The Standard & Poor's 500 Index gained 6.86 points, or 0.54 percent, at 1,278.36. The Nasdaq Composite Index added 13.18 points, or 0.50 percent, at 2,629.66.   Benchmark 10-year U.S. Treasury notes fell 3/32 in price to yield 2.95 percent. Yields earlier slipped to 2.89 percent.   The 10-year note has strong technical resistance at 2.88 percent, the lowest yield since the beginning of December and a level tested last week.   A further drop in U.S. bond yields may depend on whether investors fear a higher risk of contagion from the troubled euro zone, or see much weaker economic data.   " The market is having difficulty rallying without bad news from Europe or bad news on the side of the U.S. economy," said Charles Comiskey, head of Treasury trading at Bank of Nova Scotia in New York.   But earlier in the day shares in Europe closed lower on growing unease about the euro zone debt crisis and a possible downgrade of Italy's credit rating.   The pan-European FTSEurofirst 300 index of top shares closed 0.5 percent lower at 1,081.19 points, its lowest closing level in three months.   World stocks measured by the MSCI All-Country World Index straddled break-even, down 0.1 percent.   Brent oil futures fell, pressured by uncertainty over austerity measures for Greece and the selloff of a key spread between Brent and U.S. crude oil futures.   The premium of Brent crude to West Texas Intermediate narrowed to below $18 a barrel in late trade, after widening to a record over $23 last week.   Brent crude settled down $1.52, or 1.3 percent, at $111.69 a barrel.   U.S. light crude settled up 25 cents, or 0.27 percent, at $93.26.   U.S. gold futures' benchmark August contract finished the session up $2.90, or 0.2 percent, at $1,542 an ounce. (Additional reporting by Caroline Valetkevitch, Karen Brettell, Julie Haviv and Gene Ramos in New York Writing by Herbert Lash Editing by Kenneth Barry) |
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krisluke
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21-Jun-2011 07:17
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Wall St ends higher, but weak volume a warning sign
NYSE
  * Weak volume signals investor caution   * EU gives Greece an ultimatum, gives relief to investors   * S& P 200-day moving average 1,259 in focus   * Dow up 0.6 pct, S& P up 0.5 pct, Nasdaq 0.5 pct (Updates to close)   By Caroline Valetkevitch   NEW YORK, June 20 (Reuters) - U.S. stocks rose on Monday, as the latest development to reduce Greece's debt helped draw buyers and the S& P 500 touched a key support level, but anemic volume signalled the recent weakness may not be over.   Stocks erased early losses as the S& P 500 dipped toward 1,259.78, its 200-day moving average, which is often viewed as a pivotal point in determining the market's direction. A drop below that level would be the first since September 2010.   " When you're in the midst of a bullish trend since July of last year -- that's when the bottom was -- I think people tend to look for places to buy dips, and this is just an obvious place to expect some buying to come into the market," said John Kosar, director of research at Asbury Research in Chicago.   The moves higher may have been slightly exaggerated due to thin volume. Just 5.66 billion shares traded on the New York, Nasdaq and NYSE Amex exchanges, compared with a daily average of 7.58 billion.   Euro-zone finance ministers gave Greece two weeks from Monday to approve stricter austerity measures in return for another 12 billion euros in emergency loans, piling pressure on Athens to get its ragged finances in order.   The euro-zone finance ministers expect the money, the next tranche in a 110-billion-euro bailout of Greece by the European Union and the International Monetary Fund, to be paid by mid-July. Greece needs the loans by then to avoid a debt default.   Despite the development, financials were the S& P 500's weakest sector. Shares declined after Citigroup cut price targets on a number of banks, including Goldman Sachs, citing a tough regulatory environment. Goldman's shares slipped 1.5 percent to $135.14, while Morgan Stanley shares dropped 1.9 percent to $22.39.   The Dow Jones industrial average climbed 76.02 points, or 0.63 percent, to end at 12,080.38. The Standard & Poor's 500 Index rose 6.86 points, or 0.54 percent, to 1,278.36. The Nasdaq Composite Index gained 13.18 points, or 0.50 percent, to 2,629.66 at the close.   The S& P 500 is up about 22 percent since the end of August, but has pulled back in recent weeks amid signs that the U.S. economic recovery is faltering.   The CBOE Volatility Index, known as the VIX, lost 8.5 percent, its biggest daily percentage drop since March 21.   " I think the (economic) soft patch is already priced into the market, but we're only three or four weeks away from the heart of earnings reporting, and that should be the catalyst that turns the pullback into a correction or ends the pullback," said Hank Smith, chief investment officer of Haverford Trust Co. in Philadelphia.   Some see the latest downward trend for stocks as intact for now.   " We continue to see the intermediate-term indicators in a negative state, while short-term oversold conditions increase," said Larry McMillan, president of McMillan Analysis Corp., in Morristown, New Jersey.   The S& P health-care index rose 1 percent and ranked among the session's top-performing sectors.   The U.S. Food and Drug Administration approved a tamper-resistant pain drug from Pfizer Inc and Acura Pharmaceuticals Inc. Acura shares jumped 16.3 percent to $4.50, while shares of Pfizer, a Dow component, rose 0.05 percent to $20.27.   In the consumer discretionary sector, which was also among the top-performing groups, Wal-Mart Stores Inc gained 0.4 percent to $53.04. The U.S. Supreme Court ruled for the retail giant in the largest sex-discrimination lawsuit in history, saying class-action status for female employees seeking billions of dollars had been improperly granted.   Advancing stocks outnumbered declining ones on the NYSE by about 2 to 1. On the Nasdaq, advancers beat decliners by about 15 to 11. (Reporting by Caroline Valetkevitch Additional reporting by Doris Frankel Editing by Jan Paschal ) |
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krisluke
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21-Jun-2011 07:16
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Shares cautious as Greece woes weigh, Fed looms
WELLINGTON, June 21 (Reuters) - Asian stocks face another flat start on Tuesday with caution the watchword for investors as uncertainty about Greece's debt problems and the looming Federal Reserve meeting are set to keep markets in check.
  Euro zone ministers meeting in Luxembourg gave Greece two weeks to approve stricter austerity measures in return for another 12 billion euros ($17 billion) in aid, piling pressure on Athens to pass the necessary measures to restore order to its ragged finances. For more, see:   News of the latest development on Greece helped Wall Street close higher with the main indexes finishing up around 0.6 percent, but weak volumes were seen signalling investor caution and the prospect of further weakness.   The CBOE Volatility Index , known as the VIX, lost 8.5 percent, its biggest daily percentage drop since March 21.   Asian stocks listed on Wall Street inched 0.03 percent higher, while world stocks, as measured by the MSCI world equity index , were down 0.1 percent.   British shares fell 0.4 percent while European shares were 0.5 percent lower to their lowest closing level in three months.   The euro slid against the Swiss franc but recouped losses against the U.S. dollar and yen, while the dollar rose slightly against a basket of major currencies. The U.S. Dollar Index rose 0.07 percent. The euro rose 0.2 percent against the dollar but fell 0.1 percent against the franc .   Japanese markets may manage some gains after Monday's flat session but analysts suggest the benchmark Nikkei may stay below 9,500 until investors see the outcome of Federal Reserve meeting, due to begin later on Tuesday.   Nikkei futures traded in Chicago < 2NKc1> 95 points above the last closing level in Osaka < JNIc1> . Support is seen at 9,200.   Australian stocks are seen rising with share price index futures < YAPcm1> up 0.8 percent to 4,484, a 32.25 point premium to the close of the underlying S& P/ASX 200 index.     HEADLINES: > Europe gives Greece ultimatum: austerity for loans > Euro wavers, oil slips as Greek aid delayed > Wal-Mart wins in sex-bias case at top US court > Assad blames unrest on saboteurs, pledges reforms > US jury convicts hedge fund tipster in just hours > Moody's ups Brazil credit rating one notch to Baa2 > Plane makers ring up orders at bullish airshow > PNC's $3.45 bln deal shows banks' growth dilemma > RIM marketing executive jumps ship for Samsung > China's Huawei storms into tablet PC sector > Wall St loses appeal on 'hot news' lawsuit > Carlyle IPO may struggle to get " carry" revalued > Internet body throws open domain names .anything |
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krisluke
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21-Jun-2011 06:43
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krisluke
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21-Jun-2011 06:32
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krisluke
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21-Jun-2011 06:28
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JPMorgan: Here's 9 Reasons The Stock Market Is About To Rebound |
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krisluke
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21-Jun-2011 00:18
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IMF seeks reassurance as Greek debt woes haunt FTSE
City of London skyline looking out over Millennium Bridge with Tower 42 Gherkin,Willis Building and Stock Exchange Tower seen in the background
  * Greek debt problems linger, IMF seeks assurances   * Inmarsat rallies on contract reports   By David Brett   LONDON, June 20 (Reuters) - Banks and commodity stocks dragged Britain's top index lower on Monday, as Greece's lingering debt crisis looks likely to stall the FTSE's progress near-term, analysts said.   Investors reacted negatively after European finance ministers postponed a final decision on extending a further 12 billion euros in emergency loans to Greece.   The International Monetary Fund weighed in, saying it needed to be sure Greek reforms are on track and will be financed by the euro zone, before the lender can pay out its part of the next aid tranche for Athens.   The FTSE 100 closed down 21.55 points, or 0.4 percent, at 5,693.39, having shed 0.9 percent overall last week, its fourth straight week of losses, on concern about global economic growth and the euro zone debt crisis.   " There is clearly a shortage of good news about and the factors we see in front of us indicates that we are going to be in negative territory on and off for some considerable time," Howard Wheeldon, strategist at BGC Partners, said.   Wheeldon, however, noted the FTSE has not moved far from levels of 18 months ago and he said the index will " bob around like a cork in a rough sea for a long time yet," forecasting the FTSE 100 to close around 5,800 by year-end.   Part state-owned lenders Royal Bank of Scotland and Lloyds Banking Group were among the biggest fallers on the FTSE 100, off 4.4 percent and 2.5 percent respectively.   Insurers fell, with RSA Insurance off 1.6 percent as UBS cut its rating on the stock to " neutral" in a downbeat review of the sector on concerns over exposure to government and banking debt.     COMMODS DECLINE   Energy stocks and miners , tracking commodity prices lower, fell as investors became more risk averse on the back of the Greece concerns.   ENRC , however, rose 1.5 percent, buoyed by a Goldman Sachs initiation at " buy" with a 1,100 pence target price, citing its product mix, emerging market exposure and low cost base.   Engineers took a bashing, led by mid cap Charter International , which was down 25 percent after saying full-year results will be below expectations. That prompted Peel Hunt to downgrade its rating for the stock to " hold" .   Blue-chip peer IMI shed 1.3 percent, while mid-cap Cookson Group lost 4.6 percent.   Among blue-chip gainers, satellites operator Inmarsat was the top riser, up 4.6 percent, on media reports of a contract between its U.S. partner LightSquared and telecoms firm Sprint.   Investec Securities said the contract could be worth up to 150 pence per Inmarsat share.   Market heavyweight Vodafone added 1.7 percent, also on potential U.S. catalysts as the Financial Times's Lex column highlighted a thawing of relations between the British company and U.S. partner Verizon .   International Airlines Group extended Friday's gains, which followed an upgrade from broker Davy, rising 2.1 percent, boosted by falling oil prices.   London's blue chip index bounced off a session low of 5,647.23, helped as Wall Street rose as the UK market closed.   Atif Latif, director of trading at Guardian Stockbrokers, said: " The FTSE 100 held at 38.2 percent Fibonacci retracement of the rally from last summer at 5,593.72. If this holds again then we see upside potential." |
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krisluke
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21-Jun-2011 00:11
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Wall St gains as Greek worry eases, S& P level eyed
NYSE
  NEW YORK (Reuters) - U.S. stocks advanced on Monday, as the S& P 500 bounced off a key support level and Greece was given an ultimatum by euro-zone ministers in an effort to deal with its debt crisis.   Euro-zone finance ministers gave Greece two weeks from Monday to approve stricter austerity measures in return for another 12 billion euros in emergency loans, piling pressure on Athens to get its ragged finances in order.   " The sense is that Greece is going to get their money -- there is going to be a little bit of a fight, but the sense is the European Union is not going to let Greece default. They are not going to let them go under, so therefore that is holding the market," said Ken Polcari, managing director at ICAP Equities in New York.   Wall Street opened lower, but erased losses as the S& P 500 dipped toward 1,259.78, its 200-day moving average, encouraging buyers. A drop below that level would be the first since September 2010.   " The fact we bounced off the 200-day (moving average) and we are moving higher, and the VIX is kind of coming off a little bit, so that fear in the market seems to be subsiding. It's all a positive thing, in terms of technically for the market," Polcari said.   " But you get a really negative headline out of Europe, and it all goes away."   The Dow Jones industrial average gained 70.35 points, or 0.59 percent, to 12,074.71.The Standard & Poor's 500 Index rose 5.42 points, or 0.43 percent, to 1,276.92. The Nasdaq Composite Index added 5.65 points, or 0.22 percent, to 2,622.26.   The CBOE Volatility Index, known as the VIX, shed 4.1 percent to 20.96.   The euro-zone finance ministers expect the money, the next tranche in a 110-billion-euro bailout of Greece by the European Union and the International Monetary Fund, to be paid by mid-July. Greece needs the loans by then to avoid a debt default.   In company news, the U.S. Food and Drug Administration approved a tamper-resistant pain drug from Pfizer Inc and Acura Pharmaceuticals Inc. Acura shares jumped 28.9 percent to $4.99, while shares of Pfizer, a Dow component, slipped 0.3 percent to   $20.20.   Wal-Mart Stores Incx gained 1 percent to $53.35 after the U.S. Supreme Court ruled for the retail giant in the largest sex-discrimination lawsuit in history, saying class-action status for female employees seeking billions of dollars had been improperly granted. |
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