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STI to cross 3000 boosted by long-term investors
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lowchia
Veteran |
05-Feb-2011 15:23
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Technical Analysis on STI STI index closed near the critical shoulder resistance at 3214 on Tuesday which shown the hesitant of investors in buying higher due to long holiday ahead. 1)  In weekly charts, white candle stick with lower shadow indicates that there are strong buying pressures at new 3180 support. 2)  The weekly trading volume fall strongly as there are only 2.5 trading days in the week. 3)  MACD and RSI indicators are flat as RSI trend sideway. 4) STI is currently supported by the new found support at 3180 and 100 days MA. 5) On Tuesday, STI closed right at the shoulder resistance at 3214. Any breakout on Monday market open will trigger another around of buying pressure. Important resistance of STI: 3214 (Daily charts) Immediate Support of STI: 3180 (Daily charts) MY tactics: With US market.................READ MORE   |
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krisluke
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05-Feb-2011 13:18
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US Unemployment falls to 9.0% The unemployment rate dropped sharply last month to 9%, the lowest level in nearly 2 yrs. But the economy generated only 36,000 net new jobs, the fewest in 4 months. The January report illustrates how job growth remains the economy’s weakest spot, even as other economic indicators point to a recovery that is strengthening.. Friday’s report offered a conflicting picture on hiring. Unemployment fell because the US Labor Department’s household survey determined that more than a half-million people without jobs found work. The department conducts a separate survey of businesses, which showed tepid job creation. The two surveys sometimes diverge. Severe winter weather likely reduced the number of jobs created. Harsh snowstorms last month cut into construction employment, which fell by 32,000, the most since May. In a bright spot, manufacturing added 49,000 jobs, the most since August 1998. |
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krisluke
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05-Feb-2011 13:12
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Obama Jobs goal jeopardized by State and Local budget cuts US President Barack Obama’s goal of driving the unemployment rate below 9% in Y 2011 is threatened by State and Local budget cuts that are likely to intensify as Federal stimulus money runs out. Austerity measures may add as much as 0.25 percentage pt to the unemployment rate this year according to one keen observer. “This could make the difference between ending Y 2011 with unemployment above or below 9%,” he said. “There’s no more serious drag on economic growth than the severe budget cutbacks at the state and local level.” Reductions in public payrolls will ripple through the economy, slicing revenue at companies that rely on government contracts and depressing spending among those who are thrown out of work, he said. The result could be the loss of 600,000 jobs in the fiscal year that starts July 1, he said. State and local governments cut 12,000 workers from payrolls last month, a Labor Department report showed Friday. Total payrolls rose by 36,000, depressed by poor weather, and the unemployment rate dropped to 9 from 9.4%. The 18-month recession that began in December 2007, the longest since the 43-month Great Depression, shrank state and local tax revenue while inflating demand for services such as Medicaid and unemployment insurance. After 3 yrs of struggling to bridge budget gaps, many governors and mayors have exhausted one-time maneuvers and rainy day funds. State and Local governments fired 260,000 people last year, more than General Motors Co’s (NYSE:GM) entire workforce, even as companies expanded payrolls by 1.37 million. Since state and local government employment peaked in Y 2008, the 435,000 public- sector pink slips have exceeded General Electric Co’s (NYSE:GE) payroll.—Paul A. Ebeling, Jnr |
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krisluke
Supreme |
05-Feb-2011 13:08
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U.S. closes three banks, 14 failures so far in 2011
* U.S. closes two banks in Georgia one in Illinois
  * 14 bank failures so far in 2011 (Adds closing of bank in Chicago)   WASHINGTON, Feb 4 (Reuters) - U.S. authorities closed two banks in Georgia and one in Illinois on Friday, bringing the number of failures so far in 2011 to 14.   In 2010, 157 banks failed and 140 failed in 2009. The failures have increasingly been smaller institutions, with less than $1 billion in assets.   The FDIC announced the following closures on Friday:   * American Trust Bank of Roswell, Georgia had assets of about $238.2 million. Renasant Bank of Tupelo, Mississippi, will assume the deposits.   * North Georgia Bank of Watkinsville, Georgia had assets of about $153.2 million. BankSouth of Greensboro, Georgia, will assume the deposits.   * Community First Bank of Chicago had assets of about $51.1 million. Northbrook Bank and Trust Co of Northbrook, Illinois, will assume the deposits. (Reporting by Tom Doggett Editing by Andre Grenon |
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krisluke
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05-Feb-2011 13:03
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S& P 500 posts best week in nine, tech leads
  * US Jan payrolls barely grow, jobless rate drops   * Tech shares lead market with Cisco results on tap   * Volume heading for below average day   * Dow, S& P up 0.3 pct, Nasdaq up 0.6 pct (Adds 10-year Treasury yield and comment beginning in paragraph 12)   By Edward Krudy   NEW YORK, Feb 4 (Reuters) - The S& P 500 posted its best week in nine on Friday as the market defied calls for a pullback, and investors rotated into defensive and lagging sectors in a move that could intensify in coming weeks.   Signs of improvement in the economy and strong corporate earnings have propelled stock prices, but tapering volume, meager gains and declining numbers of advancing stocks pointed to waning buying interest at the end of the week.   January's employment data had a limited impact as job creation was weak but the unemployment rate fell, leaving many investors unsure how to interpret the report.   Sectors that have posted strong gains recently, such as energy, materials and industrials, showed signs of profit-taking as investors shifted to consumer discretionary and technology shares.   " The market has been getting more selective and the rotation is important," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. " I'm not sure people have it completely figured out yet."   Networking shares were among the leaders after JDS Uniphase posted strong earnings. Its stock rose almost 30 percent and bolstered hopes for strong results from Cisco Systems next week.   The Dow Jones industrial average rose 29.89 points, or 0.25 percent, at 12,092.15. The Standard & Poor's 500 Index added 3.77 points, or 0.29 percent, at 1,310.87. The Nasdaq Composite Index climbed 15.42 points, or 0.56 percent, at 2,769.30.   For the week the Dow rose 2.3 percent the S& P 500 rose 2.7 percent and the Nasdaq gained 3.1 percent.   The S& P's energy sector, which has gained the most this year, was among the biggest losers on the day, falling 0.3 percent. Dow component Chevron Corp dropped 0.2 percent to $97.11.   Consumer discretionary shares rose 0.7 percent after recent signs of life in the consumer. Shares in online retailer Amazon.com Inc climbed 1.3 percent to $175.93. Consumer shares have lagged the rally since the start of the year.   Strength in technology helped push the Nasdaq to new 3-year highs after the index posted its best week since mid-September, but the move was not broad-based as declining stocks came in just ahead of advancers.   A jump in Treasury debt yields could favor companies with stronger balance sheets as investors start to worry about funding costs. The yield on the 10-year note rose to 3.64 percent, the highest it has been since May 2010.   " The sharp increase in the 10-year yield is concerning, and investors may be starting to focus on businesses with better balance sheets," said Eric Cinnamond, a fund manager at River Road Asset Management in Louisville, Kentucky. " Technology obviously fits that mold."   Shares of JDS Uniphase and other optical component makers jumped a day after the company posted solid quarterly results, helped by ever-increasing demand for higher bandwidth in smart phones, tablets and other applications.   JDS Uniphase shares rose 26.9 percent to $22.76.   " The strength in the technology sector today and strong earnings from JDS Uniphase potentially have people bulled up on the prospects of a positive earnings surprise from Cisco next Wednesday," said Steve Claussen, chief investment strategist at online brokerage OptionsHouse LLC.   Cisco is set to report earnings on Wednesday. The stock rose 0.6 percent to $22.05.   Both the Dow and the S& P 500 made new 2 1/2-year highs.   " From a short-term perspective, the Dow has resistance at the 12,050 level and support at the key 12,000 region," said Joseph Hargett, analyst at Schaeffer's Investment Research in Cincinnati, Ohio.   Health insurer Aetna Inc forecast 2011 profit well above of Wall Street's target on Friday and increased its dividend, sending its shares 12.5 percent higher to $37.42.   Tyson Foods Inc advanced 5.7 percent to $18.56 after the company said quarterly earnings surged 86 percent.   U.S. employment rose by a meager 36,000 jobs in January, far less than expected, but the unemployment rate fell to 9.0 percent, its lowest level since April 2009.   Composite volume on the NYSE, the Amex and the Nasdaq reached 7.29 billion shares, below last year's estimated daily average of 8.47 billion. (Additional reporting by Doris Frankel and Rodrigo Campos Editing by Kenneth Barry) |
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krisluke
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05-Feb-2011 12:58
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Wall St Week Ahead-Market could rally on earnings, technicals
  By Rodrigo Campos   NEW YORK, Feb 4 (Reuters) - With earnings continuing to surprise on the upside and minimal technical resistance ahead, the bears may have to wait a bit longer for the much-anticipated end to the current stock rally.   The VIX, a gauge of investor anxiety, dropped this week despite unrest in the Middle East and oil prices are basically unchanged from two weeks ago. After posting its best week in the past nine, the S& P 500 has actually seen oversold levels tick lower.   " I expect the market to continue to rally despite the fact the economic news is sluggish in the jobs front," said Michael Yoshikami, chief investment strategist at YCMNet Advisors in Walnut Creek, California.   Government data showed Friday the U.S. economy created 36,000 jobs in January, far less than expected, but the unemployment rate fell to its lowest since April 2009. Economists agreed a recovery in the labor market was proceeding but not gaining speed.   Upbeat signals in the economy, coupled with a positive bias in the current earnings season, should continue to propel equities higher.   More than 70 percent of the S& P 500 companies have reported earnings above estimates so far, according to Thomson Reuters data. Investors expect aggregate earnings rose 37 percent in the last quarter, the highest estimate for that period in more than 10 months.   " We believe corporate earnings will continue to recover as companies are more efficient and economies bounce back," Yoshikami said. FEW HURDLES AHEAD   The energy, industrials and technology sectors are " trading well into overbought territory," according to a report from Bespoke Investment Group. But two recent weeks of declines are helping ease overall selling pressure, and the rally that started in September shows no signs of weakness.   " This market has been really eating up resistance levels as an every week event," said John Kosar, director of research at Asbury Research in Chicago. " We targeted 1,313 for this week as a near-term inflection point, and we haven't broken it yet."   The target coincides with the benchmark's highest level in August 2008. Chartists have mentioned the 1,360 area, the 76.4 retracement of the S& P's downhill move from late 2007 to March 2009, as one of the few technical hurdles the index faces before hitting 1,400.   The S& P has risen 25 percent since the start of September, which has led to a lack of confidence and calls for a pullback. Still, the CBOE volatility index fell 20.5 percent this week after a near 30 percent spike in the two previous weeks.   " There's a healthy degree of skepticism and many people are still calling for a correction," said Richard Ross, global technical strategist at Auerbach Grayson in New York. THIN DATA CALENDAR   Next week is slow in terms of economic indicators, with the preliminary reading of the Reuters/University of Michigan consumer sentiment as the highlight of the week.   The reading is expected to tick up to 75 from last month's 74.2, according to a Reuters poll.   " There's enough of bits and pieces of data that if they are in the aggregate positive, they can create an (upturn) in the market," said Wasif Latif, vice president of equity investments at USAA Investment Management in San Antonio, Texas.   Some investors mentioned a spike in oil prices as one of the possible headwinds for the economic recovery, and the unrest in the Middle East as an important variable for equities.   As hundreds of thousands of Egyptians marched in Cairo on Friday to demand an immediate end to President Hosni Mubarak's rule, Brent oil settled below $100 a barrel for the first time in a week. U.S. crude for March delivery fell $1.51 to settle at $89.03 a barrel.   " If oil prices continue to rise and Middle East chaos spreads, you will potentially see a headwind develop for the global economy and that will affect the stock market," said YCMNet's Yoshikami.   " Oil at $110 barrel becomes a significant headwind for the economy." FED REASSURES INVESTORS   Federal Reserve Chairman Ben Bernanke offered a moderately more optimistic assessment of the economy's prospects than in previous remarks, although he made clear the recovery still needs support from the Fed.   " As long as the Fed is indicating they will remain supportive and accommodating, that will continue to provide some degree of support to the market," said USAA's Latif. " Investors will see weakness in the market as a reason to buy." (Editing by Kenneth Barry) (Wall St Week Ahead appears every Friday. Questions or comments on this column can be e-mailed to: rodrigo.campos@thomsonreuters.com) |
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krisluke
Supreme |
05-Feb-2011 00:29
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Sensex closed 18000 points boucing off critical support @17800 points,  tricky...    doubts dj likely to close positive tonite. it got to push back to 18400 points or may  fall to  16100 - 16800 points range  as the next immediate support... |
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krisluke
Supreme |
05-Feb-2011 00:05
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Gold hits two-week high after U.S. payrolls data
  A gold bar is shown next to coins
  * Gold heads for first weekly gain this year   * Platinum prices hit highest since July 2008     (Updates prices, adds comment)   By Jan Harvey   LONDON, Feb 4 (Reuters) - Gold rose to a two-week high on Friday after fluctuating in the wake of mixed U.S. payrolls data, and was on track for its first full weekly gain this year as investors' appetite for assets seen as higher risk wavered.   Spot gold was bid at $1,353.00 an ounce at 1452 GMT, from $1,353.30 an ounce late in New York on Thursday, having earlier touched a high of $1,357.29. U.S. gold futures for April delivery rose $1.60 to $1,354.60.   The data showed private employers added just 36,000 jobs in January rather than an expected 145,000, though the unemployment rate fell to its lowest level since April 2009.   " I think the market's confused," said Credit Agricole analyst Robin Bhar. " On the one hand we didn't get any rise to speak of in the payrolls, but we got a big fall in the unemployment rate, and a big gain the manufacturing sector."   " But then we got a fall in the constuction sector, so there are a lot of mixed messages being sent out."   The euro extended losses to session lows against the dollar after the data, and was on track for a third negative session. Usually a consequently stronger dollar would weigh on gold, but the correlation between the two has weakened this year.   European shares trimmed gains slightly after the release of the numbers, while U.S. stocks were poised for a slightly higher open as investors struggled to interpret mixed messages on the economy from the jobs report.   Traders said the jobs picture may have been temporarily distorted by big storms in the United States.   " At face value the payroll data looks negative, but with revisions and weather maybe not as bad," said Tom Bentz, a broker at BNP Paribas Commodity Futures Inc in New York.   Gold is on track for a positive start to February, having posted a strong session on Thursday after comments from Federal Reserve chairman Ben Bernanke were taken to indicate that U.S. monetary policy would stay accomodative.     HEAVY PRESSURE   The precious metal had come under heavy pressure in January after a spate of better-than-expected U.S. data fuelled expectations for a move towards monetary tightening sooner rather than later, boosting interest in higher-risk assets.   The strength of the economic recovery remains a major question mark for gold.   " The medium term factors for gold -- currency debasement, sovereign debt, inflation -- haven't disappeared and will come back to underpin the marketm," Bhar said. " But at the moment, why buy gold? There are lots of better things to buy."   Asian buyers were still largely absent, with the market quiet in China, Hong Kong and Singapore during the Lunar New Year holiday there and Indian consumers put off fresh buying by Thursday's price volatility.   Gold holdings of exchange-traded funds also inched higher, with those of the largest, New York's SPDR Gold Trust, edging up just over two tonnes on Thursday.   Silver was bid at $29.11 an ounce against $28.91. Holdings of the largest silver ETF, the iShares Silver Trust, fell more than 30 tonnes to their lowest since November on Thursday.   Platinum meanwhile tracked gold up to its highest in 2-1/2 year at $1,856.99 an ounce. It was later at $1,850.24 an ounce against $1,834.99, while palladium was at $816.97 against $817.22. But UBS analyst Edel Tully said in a note that data released on Thursday by Switzerland, one of the leading clearers of platinum group metals in Europe, on its platinum imports and exports did not point to strong consumption. " That Switzerland is once again accumulating metal is not a positive indicator for platinum demand," she said. She added a sharp increase in exports from Japan, one of the top investment buyers of platinum, was worrying.   " The risk of further Japanese disinvestment is the single most negative factor in an otherwise positive platinum story, and therefore very important to watch," she said. (Editing by Keiron Henderson) |
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yummygd
Supreme |
04-Feb-2011 20:28
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krisluke what are u doing hahahaha u r updating us durin cny...its so quiet here. |
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krisluke
Supreme |
04-Feb-2011 19:58
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Gold edges down ahead of U.S. payrolls report
  A gold bar is shown next to coins
  * Coming up: U.S. non-farm payrolls data, 1330 GMT (2130hrs SG)   * Japanese platinum disinvestment a factor to watch-UBS     (Updates throughout, previous SINGAPORE)   By Jan Harvey and Melanie Burton   LONDON, Feb 4 (Reuters) - Gold eased in Europe on Friday, giving up some of the last session's gains, as growing optimism over the economic recovery shifted investors' focus to riskier assets, though moves were muted ahead of a key U.S. jobs report.   Spot gold slipped to $1,349.35 an ounce at 1122 GMT, from $1,353.30 an ounce late in New York on Thursday. U.S. gold futures for April delivery fell $2.80 to $1,350.20.   Gold has retreated from a two-week high at $1,355.80 hit the previous day, when Federal Reserve chair Ben Bernanke said the U.S. recovery still needed Fed support. His comments were taken to indicate that U.S. monetary policy would stay accomodative.   A spate of better-than-expected U.S. data had fuelled expectations for a move towards monetary tightening sooner rather than later, depressing gold. The U.S. payrolls data due at 1330 GMT will be closely watched by financial markets. " The consensus for the payrolls data is for a moderate increase but given U.S. positive data in the last few days, expectations may be skewed to the upside," said analyst Matt Turner of Mitsubishi Corp.   Turner said a positive figure could ignite risk appetite and further dull demand for the safe-haven metal.   The markets were quiet ahead of the numbers, with the euro little changed against the dollar after the previous session's losses, and European shares ticking up slightly in line with world stocks.   Oil was steady just above $90 a barrel, with ongoing unrest in Egypt underpinning prices. This also helped support gold, although the situation has sparked little fresh buying.     ASIAN BUYERS STAY AWAY   Asian buyers were still largely absent, with market quiet in China, Hong Kong and Singapore during the Lunar New Year holiday there and Indian consumers put off fresh buying by Thursday's price volatility.   Gold holdings of exchange-traded funds also inched higher, with those of the largest, New York's SPDR Gold Trust, edging up just over two tonnes on Thursday.   Silver was bid at $28.85 an ounce against $28.91. Holdings of the largest silver ETF, the iShares Silver Trust, fell more than 30 tonnes to their lowest since November on Thursday.   Platinum was at $1,832 an ounce against $1,834.99, while palladium was at $811.05 against $817.22. UBS analyst Edel Tully said in a note that data released on Thursday by Switzerland, one of the leading clearers of platinum group metals in Europe, on its platinum imports and exports did not point to strong consumption. " That Switzerland is once again accumulating metal is not a positive indicator for platinum demand," she said. She added that a sharp increase in exports from Japan, one of the top investment buyers of platinum, was worrying.   " The risk of further Japanese disinvestment is the single most negative factor in an otherwise positive platinum story, and therefore very important to watch," she said.   (Reporting by Jan Harvey Editing by William Hardy) |
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krisluke
Supreme |
04-Feb-2011 16:53
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Egyptians brace for new anti-Mubarak rally
  Egypt's President Mubarak speaks to ABC News' Amanpour in an interview at the Presidential Palace in Cairo
  CAIRO (Reuters) - Egyptians fighting to oust President Hosni Mubarak hoped to rally a million people on Friday as the United States worked to convince the 82-year-old leader to begin handing over power.   A senior U.S. official, who declined to be named, said on Thursday Washington was discussing with Egyptians different scenarios, including one in which Mubarak resigned immediately.   Mubarak, however, speaking in an interview with ABC on Thursday, said he believed his country still needed him.   " If I resign today, there will be chaos," Mubarak, who has promised to step down in September, said. Asked to comment on calls for him to resign, he said: " I don't care what people say about me. Right now I care about my country."   In Cairo's Tahrir Square -- the hub of protests now into their 11th day -- thousands who had defied a curfew and attacks on Wednesday by pro-Mubarak supporters -- were preparing for a rally they had dubbed the " Friday of Departure."   Organisers called on people to march from wherever they were towards the square, the state television building and the parliament building -- all within around a mile of one another.   By daybreak, protesters were already buzzing around Tahrir Square with banners and rallying their comrades with chants from the speakers of: " Let Mubarak fall ... Let Mubarak fall ... Let Mubarak fall."   " Today is the last day ... today is the last day!" they shouted, while nostalgic music was played. " Egypt is today in celebration." Tents were scattered across the square and some had slept on the grass, ready for the planned day of protest.   With the unprecedented challenge to Mubarak's 30-year-rule turning increasingly violent, Washington has been urging Egypt to begin the transition of power and move towards elections.   A senior official in the administration of President Barack Obama said various options were being discussed with Egyptian officials, including one in which Mubarak resigned immediately.   " That's one scenario," he said, speaking on condition of anonymity. " There are a number of scenarios, but (it is) wrong to suggest we have discussed only one with the Egyptians."   " THEY SHOULD MIND THEIR OWN BUSINESS"   The New York Times cited U.S. officials and Arab diplomats as saying Washington was discussing a plan for Mubarak to hand over power to a transitional government headed by Vice President Omar Suleiman with the support of the Egyptian military.   However, it also quoted a senior Egyptian official as saying the constitution did not allow this. " That's my technical answer," he added. " My political answer is they should mind their own business."   Suleiman also hinted at irritation with U.S. interference in a television interview on Thursday.   " There are some abnormal ways by which foreign countries have intervened through press declarations and statements. This was very strange, given the friendly relations between us and them," he said.   Obama and his top aides have carefully avoided calling for Mubarak's resignation, instead insisting that an orderly transition " must begin now."   An estimated 150 people have died in the unrest which was inspired in part by protests in Tunisia which forced Tunisian strongman Zine al-Abidine Ben Ali to flee last month and which have since spread to other parts of the Middle East.   In the most dramatic spike in violence, pro-Mubarak supporters attacked protesters in Tahrir Square on Wednesday and pitched battles broke out between the two sides. The government denied accusations by the protesters and international activists that they had instigated the attack.   The government has offered talks on reforms, but that has failed to satisfy protesters who want Mubarak to leave now.   The opposition -- which includes the liberal figurehead Mohamed ElBaradei and the Islamist Muslim Brotherhood -- has rejected talks until Mubarak resigns   They also say they want democracy rather than Mubarak's replacement by another leader drawn from the army, which has dominated Egypt since it toppled the monarchy in 1952.   A leading member of the Brotherhood told Al Jazeera television on Friday the group -- Egypt's most organised opposition group -- had no ambitions to run for the presidency.   Mohammed al-Beltagi also said government representatives who had invited it to talks on political reform had indicated that the group, which is formally banned, would receive official recognition as a party.   Egypt, which signed a peace treaty with Israel in 1979, has been a key U.S. ally in the Middle East. Mubarak had also styled himself as a bulwark against Islamist militancy.   The United States supplies the Egyptian army with about $1.3 billion (804.5 million pounds) in aid annually.   Mubarak described Obama as a very good man, but when asked by ABC if he felt that the United States had betrayed him, he said he told the U.S. president: " You don't understand the Egyptian culture and what would happen if I step down now."   (Reporting by Edmund Blair, Samia Nakhoul, Patrick Werr, Dina Zayed, Marwa Awad, Shaimaa Fayed, Alexander Dziadosz, Yasmine Saleh, Sherine El Madany, Yannis Behrakis, Jonathan Wright, Andrew Hammond, Tom Perry and Alison Williams in Cairo writing by Myra MacDonald editing by Alison Williams) |
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krisluke
Supreme |
04-Feb-2011 16:48
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Euro under pressure after ECB disappoints bulls
  * Euro support seen at $1.3570-$1.3535   * Retreat from ECB rate hike prospect could undermine euro   * Aussie near post-float high after RBA   By Hideyuki Sano   TOKYO, Feb 4 (Reuters) - The euro was on the defensive on Friday after European Central Bank President Jean-Claude Trichet poured cold water on expectations for a near-term rate hike, wrongfooting bulls who had expected more tough talk on inflation.   Whether the euro's retreat from a 12-week high will continue now hinges on U.S. job data due later in the day, with a break of support around $1.3535-70 seen as a potential sign of more losses down the road.   Trichet, speaking after the ECB's decision to keep rates at a record low 1 percent on Thursday, said inflation expectations remain " firmly anchored" and inflationary pressures over the medium to long term " should remain contained" .   His comments disappointed investors who expected a more hawkish statement after recent inflation data came in above forecasts. Expectations the ECB would lift interest rates sooner than the Federal Reserve had boosted the euro in recent weeks.   The euro traded at $1.3625 after falling 1.2 percent the previous day, moving further away from a 12-week peak of $1.3862 set on Wednesday.   On charts, the euro is now clutching at support from an Ichimoku cloud top at $1.3626.   More supports lies at $1.3570, this week's low, and $1.3535, which was resistance for the currency last month before a break there turned it into support.   A breach of those rates would open the door for a slide below $1.35 -- a scenario some analysts view as likely.   " I think the market's expectations of ECB rate hikes had gone a bit too far," said Ayako Sera, a market strategist at Sumitomo Trust and Banking Corp.   Trichet's comments prompted euro zone interest rate futures to reflect a rolling back of expectations of a rate increase by August to around 80 percent from fully pricing it in before.   Sera said such expectations may retreat further and push the euro to around $1.34.   " It's true the ECB is moving towards normalisation step by step. But it's questionable if the ECB can raise rates just focusing on the strength in Germany and ignoring high unemployment in some other countries," Sera said   The market will be watching an EU summit later on Friday, although few traders expected a surprise as any measures to reinforce its bailout scheme are expected to be taken in March.   More important will be U.S. jobs data due at 1330 GMT, with market players expecting it to show jobs growth of 145,000 in January.   Some traders think a stronger reading would favour the dollar at the expense of the euro.   " U.S. bond yields seem about to go above their recent ranges. If they do, that will likely lead to a broad recovery in the dollar," said a trader at a Japanese bank.   But others think the market reaction may not be straightforward as the euro could benefit from rising risk appetite, especially if the data fails to change the perception that the Federal Reserve is no hurry to raise rates.   Fed Chairman Ben Bernanke said on Thursday that despite improved data the U.S. economy needs help from the central bank.   U.S. short-term interest rates futures suggest traders have raised their expectations that the Fed could increase rates at the end of the year in a bid to keep a lid on inflation.   Bolstering those expectations and the dollar's rebound were reports showing the U.S. services sector grew in January at its fastest pace since August 2005 while new weekly claims for unemployment benefits dropped sharply.   The dollar index showing its value against a basket of currencies rebounded sharply on Thursday but moved little on Friday at 77.74, off a 12-week low of 76.881 hit earlier this week.   The dollar was little changed against the yen at 81.61 yen, drawing little help from a rise in U.S. bond yields -- a sea change from last year when the pair closely tracked U.S. debt yields.   Although the two-year U.S. bond yield climbed to a new one-month high of 0.73 percent and looks set to rise to an 8-month peak if the U.S. job data turns out to be strong, the dollar hovered not far from a one-month low of 81.31 yen hit earlier this week.   UNLIKELY TO STEP UP   While bids by Japanese investors are supporting the dollar for now, some analysts say Japanese investors are unlikely to step up their dollar buying.   " Even if the two-year yield rises to 1 percent, Japanese investors will not buy dollar bonds without currency hedging because they can get far better returns on hedged U.S. bonds than domestic bonds," said Minori Uchida, a senior analyst at Bank of Tokyo-Mitsubishi UFJ.   " I expect the dollar to fall below 80 yen. It seems to be in a broad downtrend," he said.   The Aussie dollar jumped to a one-month high after the Reserve Bank of Australia stayed resolutely upbeat on the economic outlook and played down the temporary impact of recent floods, leading investors to price in higher interest rates.   The Aussie rose as high as $1.0196, not far from a 28-year high of $1.0257 hit last year. (Editing by Joseph Radford) |
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krisluke
Supreme |
04-Feb-2011 16:45
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Indonesia's central bank hiked its benchmark interest rate by 25 basis points to 6.75 percent on Friday, after keeping it at a record low for 18 months, to tackle growing inflationary pressures that have been spooking foreign investors. FEBRUARY > Indonesia cbank raises rates,cites food prices. > Australia cbank holds rates, looks past floods. |
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teeth53
Supreme |
04-Feb-2011 14:27
Yells: "don't learn through life, learn to grow with life " |
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teeth53 wishes all. :)) Wishes all a happy and prosperous Happy Lunar Rabbit CNY 2011. |
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krisluke
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04-Feb-2011 13:09
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SINGAPORE BUDGET OUTLOOK In Singapore the New Budget is about to be handed down and Chutinush Taksinapinunt and Issaree Suwunnavid take a look at what to expect in the coming months. Heffernan Capital Management believe the upcoming Singapore Budget will continue to emphasise growth and transformation of the Singapore economy in to a leading smart economy at the Global level. ‘Especially at the lower end, if we want to uplift people, the best way is to uplift their skills and redesign their jobs and improve what workers are able to do,’ Prime Minister Lee Hsien Loong said on Thursday. Mr Lee was speaking to reporters at the Bukit Merah depot of waste management company SembWaste on the first day of the Chinese New Year, when he traditionally visits workers who perform essential duties to thank them for keeping Singapore going when most people are busy celebrating. Prime Minister Lee Hsien Loong presented traditional hongbao and mandarin oranges to some 200 waste collection truck drivers, crew and maintenance workers, tossed yu sheng and spent over an hour talking to them. ‘It’s an essential service – the rest of us are enjoying the festival, and being with our families, but they’re working hard, keeping Singapore clean, keeping our systems going,’ he said of his visit. The Government’s Budget for the coming financial year will be delivered in Parliament by Finance Minister Tharman Shanmugaratnam on Feb 18. The Singapore Budget is prepared for every financial year, which begins on 1st April of every year. For example, the 2011 Singapore Budget is for the period 1 April 2011 to 31 March 2012.
The annual budgeting process takes place in the following steps: The Minister for Finance will present the Government-approved Budget to the Parliament before the new financial year begins. For Budget 2011, that will take place in February 2011. Members of Parliament will then ask questions on the past expenditure of the funds during the Budget Debate and Committee of Supply sessions. They will also debate on the proposed Budget for the following financial year. Once the Parliament agrees with the proposed Budget, it will give its approval by passing the Supply Bill. The President will then need to give his assent to the Supply Bill to allow the Bill to come into effect.    If the President gives his assent to the Supply Bill, it is then enacted as law known as the Supply Act. The Supply Act controls the Government’s spending in the following financial year.
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krisluke
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04-Feb-2011 13:05
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USA IN RECOVERY US Data augers strong growth momentum Growth in the US services sector in January was the fastest in more than 5 yrs, another sign the economy started Y 2011 on a solid footing, with measures of employment showing more strength. Reports Thursday, including a sharp fall in weekly claims for jobless benefits, painted a more Bullish picture for the world’s biggest economy as it recovers from the worst recession since the Great Depression. US inflation pressures appeared mostly under control even as commodity prices rise, in contrast with other parts of the world, helped by US businesses keeping a tight grip on labor costs, the largest expense for most companies. The Institute for Supply Management’s index of national non-manufacturing activity rose to 59.4 last month, its highest level since August 2005, from 57.1 in December. Economists had expected a dip to 57.0. A reading above 50 indicates expansion in the service sector, which accounts for more than 80% of US jobs, and it was the 14th month running of growth. The surprise pick-up in growth, which mirrored a similar acceleration in US manufacturing in January, was further confirmation that the economic recovery was broadening. US Federal Reserve Chairman Ben Bernanke Thursday said there is improvement in the recovery, but the economy still needed help, citing persistently high unemployment. The US central bank is committed to buying US$600B + of government bonds by June to stimulate the economy further (QE-2). “Even so, with output growth likely to be moderate for a while and with employers reportedly still reluctant to add to their payrolls, it will be several years before the unemployment rate has returned to a more normal level,” Bernanke told the National Press Club in Washington. A rise in consumer spending lifted the economy to a 3.2% annual growth rate in Q-4 Y 2010, quickening from a 2.6% pace in the past 3 months. Economists believe strengthening domestic demand will translate into increased hiring. A Labor Department report showed new claims for state jobless benefits fell 42,000 to a seasonally adjusted 415,000, unwinding most of the previous week’s weather-induced spike. Economists had forecast claims dropping to 420,000. The claims data falls outside the survey period for the closely watched payrolls report for January, due on Friday. The economy probably created 145,000 jobs, according to a Reuters poll, after adding 103,000 in December. Reports on Wednesday suggested private hiring was gathering pace. Expectations for a pickup in job growth were bolstered by a jump in the ISM’s employment gauge to its highest since May 2006. The improving US economic picture was underscored by retailers posting a 4.2% rise in sales, handily beating Wall Street expectations for a 2.7% gain. Sales grew strongly despite the snowiest January in six years. Heavy snow and cold weather slowed the downward trend in initial jobless claims by causing a backlog in applications but economists believe they will soon drop below 400,000, a level believed to signal strong job growth. A 2nd Labor Department report showed that although businesses faced rising input costs, they kept labor costs down by wringing more from workers, helping keep inflation muted. Nonfarm productivity, a measure of hourly output per worker, rose at an annual rate of 2.6% in Q-4 after rising at a 2.4% pace in Q-3. The increase, which was well above economists’ expectations for a 2% growth rate, bodes well for company profits. Unit labor costs, a gauge of potential inflation pressures closely watched by the Fed, fell at a 0.6% rate after dipping 0.1% in Q-3. Paul A. Ebeling, Jnr |
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krisluke
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04-Feb-2011 12:58
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Nikkei up 1.1 pct, steel sector merger boosts mood
Tokyo Stock Exchange's Market Center, where floor trading took place until 1999.
  * Big steelmakers' merger plan lifts Tokyo market sentiment   * Iron and steel sector subindex up 6.3 percent   By Ayai Tomisawa   TOKYO, Feb 4 (Reuters) - The Nikkei stock average gained 1.1 percent on Friday as a merger of two steelmakers boosted hopes for restructuring in corporate Japan, providing fresh momentum for the benchmark which had been widely seen as due for a correction.   Better-than-expected results or annual guidance from the likes of Sony, Hitachi and Softbank, as well as encouraging U.S. chain-store sales data also bolstered sentiment.   Tokyo's iron and steel subindex surged 6.3 percent after Nippon Steel Corp and Sumitomo Metal Industries said they would merge next year to create the world's second-largest steelmaker after ArcelorMittal.   " The news will likely raise expectations that more Japanese companies will seriously try to increase their competitive edge in the global market," said Shinichiro Matsushita, a senior market analyst at Daiwa Securities.   In active trade, the benchmark Nikkei rose 1.1 percent to 10,550.02 by the midday break. The broader Topix gained 1.0 percent to 936.82.   " Although gains may be trimmed in the afternoon as investors await U.S. jobs data, the market will probably stay strong throughout the day," said Hiroichi Nishi, general manager at Nikko Cordial Securities.   The Nikkei has gained about 15 percent on foreign buying since last November and many market participants had expected a correction before more gains.   But the merger deal, accompanied by likely strong U.S. economic indicators, will probably lift the Tokyo market earlier than expected, they said.   " I had expected that the Nikkei would refresh its year-to-date high around the end of March, but it may be earlier than that thanks to active corporate consolidation in the domestic market," Mitsushige Akino, a fund manager at Ichiyoshi Investment Management said.   The Nikkei's year-to-date high is 10,620.57, an intraday high marked on January 13.   Among steel makers, Nippon Steel jumped 9.1 percent to 313 yen, while Sumitomo Metal soared 16 percent to 224 yen. Nisshin Steel surged 6.6 percent to 178 yen.   Shares in electronics giant Sony Corp rose 2.2 percent to 2,931 yen after better-than-expected earnings for the October-December period. Its operating profit was 137.5 billion yen ($1.7 billion) in the quarter, compared with analysts' average forecast of 127 billion yen.   Electronics conglomerate Hitachi climbed 1.7 percent to 481 and hit its highest since November 2008 after raising its annual outlook above market expectations, as cost-cutting and robust revenue in emerging markets helped quarterly operating profit nearly double.   U.S. chain-store sales climbed 4.8 percent in January. Along with rising service-sector activity and improved jobless claims figures, the stronger-than-expected retail figures added to growing evidence of an economic rebound.   " On an assumption that the U.S. economy will keep recovering, the shift in funds to developed markets from emerging markets will likely continue," said Tomochika Kitaoka, a strategist at Mizuho Securities.   He said the Nikkei benchmark may target 11,000 and the broader Topic may trade between 950 to 1,050 in late March.   Volume was high, with 1.375 billion shares changing hands on the Tokyo stock exchange's first section, with the day's total likely to top last week's daily average volume of 1.92 billion shares. (Additional reporting by the Tokyo bureau Editing by Edwina Gibbs) |
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krisluke
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04-Feb-2011 12:55
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Shell drags FTSE lower as results disappoint
The foyer of the LSE
  * Shell weaker as results lag forecasts   * GlaxoSmithKline gains as resumes buyback   * BT firms Global Services surprise lifts results     By Tricia Wright   LONDON, Feb 3 (Reuters) - Britain's top share index fell on Thursday, hurt by Royal Dutch Shell as the oil major's results were met with disappointment, while drugmaker GlaxoSmithKline rose after it decided to push ahead with a buyback programme.   The FTSE 100 shed 16.73 points, or 0.3 percent, to 5,983.34, after closing 0.7 percent higher on Wednesday.   " People are waiting for a significant break and close above (the 6,000 level) for the market to push on," Yusuf Heusen, senior sales trader at IG Index, said.   Heusen argued that major impediments to the index's progress on Thursday were Shell after its results and BP on uncertainty surrounding its planned Arctic exploration partnership with Rosneft, Russia's state oil group.   Share price declines from Royal Dutch Shell's A and B shares and BP knocked a total of 24 points off the UK blue chip index.   Shell's A shares fell 3 percent after the firm posted weak refining and downstream results, as an oil price fuelled rebound in its fourth-quarter profit fell short of expectations.   BP, whose own results undershot forecasts earlier in the week, fell 2.1 percent, as peer BG Group, due to report on Tuesday, slipped 1.9 percent.     GLAXO LIMITS LOSSES   GlaxoSmithKline, up 3.6 percent, helped curb the FTSE 100's decline.   Britain's biggest drugmaker said it would start buying back shares again in 2011, demonstrating confidence it has turned the corner following massive legal bills, as it posted quarterly results which were viewed as broadly in-line.   BT Group also provided support, adding 3.6 percent, after the telecoms provider reported third-quarter results which Prime Markets described as " excellent" .   " (We) view the post Xmas dip as a window of opportunity to pick up the shares before they once again begin their seemingly inevitable upward trajectory for 2011," it said in a note.   Aggreko added 4.9 percent, the top FTSE 100 riser, after BofA Merrill Lynch upgraded its rating for the temporary power supplier to " buy" from " neutral" citing valuation grounds.   Analysts said concerns that the uprising in Egypt could spread across the region also weighed on investor sentiment.   " For as long as (the situation in Egypt) continues, the markets will be a little bit nervous," Angus Campbell, head of sales at Capital Spreads, said.   " Western economies are very reliant on their major export, which is oil of course, but also there are a number of important business relationships we have with that part of the world."   Wall Street was also pressured, as better-than-expected readings of U.S. economic growth were not enough to dislodge fears about Egypt, where gunmen fired on anti-government protesters in Cairo.   Data showed the U.S. services sector grew in January at its fastest pace since August 2005, and initial claims in the latest week for state unemployment benefits fell more than expected. (Editing by Jon Loades-Carter) |
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krisluke
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04-Feb-2011 10:32
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Gold steady ahead of payroll data ETF inches up
Gold ingots stand in a row
    FUNDAMENTALS   * Spot gold fell $1.95 to $1,351.30 an ounce by 0040 GMT after surging more than 1 percent on buying by exchange traded funds and safe haven demand triggered by unrest in Egypt. Markets in Singapore, Hong Kong and China are closed for the Lunar New Year.   * U.S. gold futures for April hardly moved at $1,352.2 an ounce.   * The world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings rose slightly to 1,229.277 tonnes by Feb. 3 from 1,227.153 tonnes on Jan 31.   * Investors are paying close attention to Friday's U.S. January non-farm payroll data due at 1330 GMT. Traders said that gold prices could retreat sharply if the data promotes an optimistic view of the economy.     MARKET NEWS   * Japan's Nikkei rose on Friday helped by optimism about a recovery in the U.S. economy, which pushed up U.S. stocks, while a merger in the domestic steel industry lifted the mood on hopes the Japanese corporate sector will undergo restructuring and consolidation.   * The euro fell broadly on Thursday and could extend those losses after European Central Bank President Jean-Claude Trichet threw cold water on expectations euro zone interest rates would rise any time soon.     DATA/EVENTS (GMT)   1330 GMT U.S. non-farm payroll data     RELATED NEWS > Egypt's Mubarak says resigning would bring chaos > If not Egypt, what will stop risk asset rally? > Thirty-year T-bond yield highest in 9 months-plus > Bernanke: Catastrophe if debt limit not raised > Aus QBE in $1.9 bln Bank of America insurance deal > Microsoft sells $2.25 bln of debt at low rates > Germany, France to press euro zone on debt crisis > Food costs at records, UN warns of volatile era > JPMorgan execs were warned about Madoff - trustee > U.S. states ramp up foreign currency trade probes > U.S. retailers beat estimates, January storms |
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krisluke
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04-Feb-2011 10:29
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Wall St edges up on retail sales
NEW YORK, Feb 3 (Reuters) - U.S. stocks ended near the session's highs on Thursday, with investors favoring shares of retailers after encouraging chain-store sales raised confidence ahead of Friday's jobs report.
  Based on the latest available data, the Dow Jones industrial average was up 20.21 points, or 0.17 percent, at 12,062.18. The Standard & Poor's 500 Index was up 3.07 points, or 0.24 percent, at 1,307.10. The Nasdaq Composite Index was up 4.32 points, or 0.16 percent, at 2,753.88. (Reporting by Caroline Valetkevitch Editing by Kenneth Barry) |
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