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STI to cross 3000 boosted by long-term investors
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krisluke
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28-Jan-2011 15:46
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China uses property tightening as monetary proxy
* China unveils home-ownership tax, raises downpayments
* Quelling property price rises is key to taming inflation * Central bank is trying to avoid big interest rate hikes By Simon Rabinovitch BEIJING, Jan 28 (Reuters) - Reluctant to raise interest rates, China is instead tightening its grip on the property market, a stop-gap strategy that will dampen inflation but fail to cure the root problem of too much cash in the economy. Beijing unveiled a series of new rules this week, including a long-awaited home ownership tax, to deter real estate speculation, its third package of measures in the past year to rein in housing prices. The vigour with which the government has implemented and refined its property clampdown contrasts with the torpor of its monetary tightening -- just two interest rate increases since October, even though inflation has put real deposit rates about 2 percentage points into negative territory. There is a logic to Beijing's approach. As recent comments by central bank officials indicate, the government fears that aggressive interest rate increases would inflict undue harm on the economy at a time when external demand remains shaky. Steps to cool the property market help fill in for that missing tightening. "If China does not hike rates, it must find a way to cap asset prices to avoid asset bubbles," said Ting Lu, an economist with Bank of America-Merrill Lynch. "Part of inflation expectations is from rising property prices, so controlling home prices could help dent inflation expectations." Chinese property prices rose an annual average of 10 percent last year, outpacing the 3.3 percent increase averaged by consumer prices. A rebound in month-on-month property inflation since September also helped drive a spike in broader inflation to its fastest in more than two years. The latest property tightening campaign is a hodge-podge: a home ownership tax on a trial basis in two cities; a stricter housing sales tax; incrementally higher mandatory downpayments on second homes; and rules to prevent individuals from owning more than two homes in most major cities. Of 10 China-based analysts polled by Reuters on Friday, six said the measures would restrict property price rises to less than 5 percent this year, while three forecast outright declines. NOT ENOUGH Yet property tightening by itself is only a band-aid solution, alleviating the symptoms of excessive liquidity in the economy, not actually draining the vast pool of cash. "The property measures are quite tough. The market should react at least in the near term, but fundamentally it should not be a substitute for monetary measures," said Kevin Lai, an economist with Daiwa Capital Markets. Lai predicted two interest rate increases this year, in line with the market consensus, saying these were needed to steer broad money growth, running at an annual pace of 20 percent, back to a normal level, which is about 16 percent for China. But he also sympathised with Beijing's wariness to move more forcefully. To keep the yuan stable, the central bank already has its hands full buying up most of the foreign exchange streaming into China through the current account. If Chinese interest rates were significantly higher than in developed markets, it would have more capital inflows and a bigger liquidity headache to deal with, Lai noted. Yi Gang, deputy governor of the People's Bank of China, noted that dilemma in an official magazine interview earlier this month and arrived at the conclusion that the role of monetary policy was becoming more limited. IMPACT OF TIGHTENING Ironically, if the government is successful in taming property inflation, it will help deflect the capital inflows now handcuffing its monetary policy and so gain more room for conventional tightening. "Our research shows that the rise in asset prices is the most important factor attracting overseas money inflows," said Tang Jianwei, economist at Bank of Communications in Shanghai. The question, then, is just how successful the property clampdown will be. Analysts say the new home ownership tax, launched by the cities of Shanghai and Chongqing, is too small and loophole-prone to be significant at first, but that it is nevertheless a step in the right direction. More important -- even "draconian", in the estimation of research firm CEBM -- are the steps to prevent people from owning more than two homes and the stricter implementation of a 5.5 percent sales tax. "The measures will help squeeze out some speculators," said Gong Ping, a senior manager at Centaline, a real estate agency in Beijing. But Chen Dong, a property analyst at Bank of China International in Shanghai, warned that as a band-aid solution to inflation, the stickiness of the latest property tightening measures would wear off before long. "No doubt, the most effective measure to curb inflation is to raise interest rates," he said. (Additional reporting by Langi Chiang, Aileen Wang and Kevin Yao; Editing by Alex Richardson) |
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iPunter
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28-Jan-2011 15:28
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There is nothing wrong with that... it is just a continuous auction for stocks. that is why there is a stock market. 'Auctioning tactics' are perfectly normal... |
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risktaker
Supreme |
28-Jan-2011 15:17
Yells: "Sometimes you think you know, but in fact you dont" |
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actually ... this kind of things happen everyday..... When people short an counter... someone will be there waiting to catch them.... then you see how come a weak buy suddenly become very strong.... then they clear up the sell 1-3 bids and naked shorters will have to clear out higher bid to cover their short position...
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iPunter
Supreme |
28-Jan-2011 15:14
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There are 101 books about the stock market where one can learn much from. And this is a good start for newbies. Since the background of every author varies, it is good to collect books by many authors. This way, one's knowledge of the workings of the stock market will be much enriched in time. Of particular interest should be books about 'psychology of speculation'. Learning from good authors is itself is a worthy pursuit... |
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niuyear
Supreme |
28-Jan-2011 15:03
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I think only BBs or rich guys can do that! Ordinary joe in the street, will bankrupt within a day. hahaha!
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risktaker
Supreme |
28-Jan-2011 14:48
Yells: "Sometimes you think you know, but in fact you dont" |
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simple.... if someone sell 100 lots to you.... you eat up 200 lots.... if he sell you 200 lots you eat all up and stack on the next level !!! If they still selling ... you eat 3 more queue up... Show them your power !!! ZHOU YU
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iPunter
Supreme |
28-Jan-2011 14:46
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You should not teach people the wrong things!... How can "the angrier the person is, the coolest the person"??? A person should not even start to be angry in the first place, let alone be 'angrier'... But anger in the stock market is usually expressed in acts such as averaging down, doubling up, and kicking everything in sight....
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niuyear
Supreme |
28-Jan-2011 14:34
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iPunter, you are kind of cool person, no anger, even you lose money, not happy, if you make money. But, No one KNOWS the truth of whats behind the computer screen, only Yourself. As the saying goes : The Angrier the person is, the coolest the person. Hope you dont fall into that category, but, if you do, fear not, you and me are just human beings, we all have feelings, hey, its ok to feel angry when one loses money, and its perfectly normal, my friend. :)
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hotokee
Veteran |
28-Jan-2011 14:20
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To say 50% winning and 50% losing is rather comforting. But chances of striking toto is not in the chances but in the numbers. One combination out of 8.145 million combination to strike the top jackpot.
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SGG_SGG
Master |
28-Jan-2011 14:05
Yells: "karma karma karma chameleon" |
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There is nothing to be angry about here. Simply reiterating your own advice, which sometimes comes off as contradicting. Cheers
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krisluke
Supreme |
28-Jan-2011 14:01
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Steps countries are taking to counter hot money
Jan 27 (Reuters) - More governments around the world are moving to keep their currencies from strengthening or control the flow of money into their economies as investors pour money into higher-yielding markets, turning their backs on low interest rates in developed economies.
Below are recent cases of direct or indirect government intervention in the currency markets, compiled by Reuters: ISRAEL SEEKS TO ANNUL TAX EXEMPTION ON SHORT-TERM DEBT * Israel's Finance Ministry says on Jan. 27 it is acting to annul a tax exemption for foreign investors on profit from investments in short-term government bonds and short-term Bank of Israel bills called makams. * The Bank of Israel says on Jan. 20 it will impose a 10 percent reserve requirement for foreign exchange swaps and forwards trades conducted by non-residents, effective Jan. 27. * On Jan. 19, the central bank announces it will require Israelis and foreigners to report on transactions in foreign exchange swaps and forwards of more than $10 million in one day. * Non-residents who perform transactions in short-term Bank of Israel bills known as makams and short-term government bonds of more than 10 million shekels in one day will be required to report details of the transactions and their balance of holdings of such assets. -- Story links: [ID:nLDE70Q1HO] [ID:nLDE70J19Z] [ID:nLDE70I0EK] BRAZIL ACTS IN FUTURES MARKET, TARGETS BANKS' POSITIONS AND INFLOWS * The central bank on Jan. 14 sells $988 million in reverse currency swaps, a derivative that effectively allows the bank to buy U.S. dollars on the futures market. * New reserve requirements on banks' short positions on U.S. dollars aim to reduce speculative trade. * Aggressive measures promised by incoming President Rousseff on Dec. 31, including targeted tariff increases and tax breaks to address effects of strong real <BRBY>. * Raises bank reserve requirements on Dec. 4 to cool a credit boom and ease the currency situation. * Sovereign wealth fund authorized to buy dollars on spot market. * Government triples tax on foreign purchases of bonds to 6 percent on Oct. 18 to curb inflows into fixed income market. * Government increases tax on derivatives margins to dissuade short-term investors. -- Story links: [ID:nN14137379] [ID:nLDE7050Z6] [ID:nN30113578] CHILE LAUNCHES FOREX INTERVENTION, HALTS RATE HIKES * Central bank holds benchmark interest rate steady on Jan. 13 after raising it for seven consecutive months, in a move widely seen complementing its currency intervention. * Central bank begins a record $12 billion in dollar purchases during 2011, warning against intervention "addiction". * Chilean President Sebastian Pinera says he has no plans for capital controls. * Central bank lifts limits on pension funds' overseas investment. -- Story links: [ID:nN13283103] [ID:nN04206531] [ID:nN04221079] PERU BUYS DOLLARS, ENCOURAGES INVESTMENT ABROAD * On Dec. 31 government trims average tariff on imports to 3.4 percent from 5 percent, possibly resulting in increased imports and less appreciation pressure on the sol <PEN=PE>. * Central bank buys about $9 billion dollars on the spot market in 2010, equivalent to around 6 percent of GDP. The treasury also bought around $500 million. * On Nov. 26 banking regulator SBS says drawing up rule to curb use of short-term derivatives called non-deliverable forwards (NDFs) to limit pressure on the sol. * Central bank raises deposit requirements on bank accounts, especially those tied to foreign loans, in a bid to limit speculation on the sol. -- Story links: [ID:nN26131354] [ID:Nn31130618] TAIWAN TIGHTENS FOREX RULES * Financial Supervisory Commission says on Dec. 30 it will investigate bank trading to see whether foreign capital involved in speculation. * On Dec. 27 the central bank caps trading in non-deliverable forwards at one fifth of a bank's total foreign exchange trading. * Tightened reserve requirements ratio for Taiwan dollar passbook deposits held by foreign investors. -- Story links [ID:nTOE6BR007] [ID:nTOE6BT02Q] [ID:nTOE6B200N] SOUTH KOREA SET TO IMPOSE BANK LEVY, WITHHOLDING TAX * Announces on Dec. 20 a proposal to levy banks' foreign currency debt from late 2011, expected to be at a level less than 0.5 percent. * Government expected to reinstate withholding tax on local bond holdings by foreign investors' later this year, expected to be set at 14 percent. * In June, sets ceilings on foreign exchange derivatives that banks can hold of 250 percent of equity capital for foreign bank branches and 50 percent for domestic banks. Says at end of December that these will be cut further to 200 and 40 percent respectively. -- Story links: [ID:nTOE702015] [ID:nTOE6B6021] [ID:nSUL000219] TURKEY RAISES RESERVE RATIOS ON LIRA DEPOSITS * Central bank on Jan. 24 raises reserve requirements on one-month lira deposits by 200 basis points to 10 percent of the amount deposited, at the top end of analysts' expectations. * Central bank on Jan. 20 cuts its one-week repo policy rate by 25 bps in a surprise move. * Central bank says on Dec. 21 it will use all tools in its policy arsenal to cap speculative inflows. * Increases reserve requirements for banks' short-term lira deposits, to prevent lira strengthening. * Signals may also lift requirement for foreign-exchange deposits. * Says not actively considering Tobin tax on hot money. -- Story links: [ID:nLDE70N12F] [ID:nLDE70J19K] [ID:nLDE6BK0TQ] SOUTH AFRICA EASES EXCHANGE CONTROLS * South Africa eases exchange controls on Dec. 14, allowing local institutions to invest more money abroad * Government says it will build up foreign currency reserves to curb rand <ZAR=> appreciation. * But analysts doubt it has financial muscle to force down rand; finance minister says international cooperation needed. --Story links: [ID:nL3E6NE0FH] [ID:nLDE68F1ER] INDONESIA SAYS TO CONTROL BANKS' FOREIGN CURRENCY HOLDINGS * Central bank signals on Dec. 3 it will impose new measures to control inflows, including management of commercial banks' minimum reserve ratios in foreign currency bank accounts and rupiah-denominated giro accounts held by foreigners with local banks. * The central bank introduced a minimum holding period of one month for its bills in June this year in a move to channel strong capital inflows away from short-term investments. -- Story links: [ID:nL3E6N30LR][ID:nL3E6NA0BJ] PHILIPPINES RELAXES FOREX RULES IN RESPONSE TO INFLOWS * On Nov. 17 the central bank says it will use measures such as building up foreign exchange reserves and additional bank regulations to deal with foreign inflows. * Approves six measures in late October, involving higher ceilings for residents' foreign exchange purchases and outward investments, and encouraging foreign debt prepayments by the private sector -- moves aimed at encouraging outflows of capital and dampening a peso currency <PHP=PDSP> that has reached 2-year highs. * Bank to stay active in market as peso <PHP=> rises. -- Story links: [ID:nSGE6AG058][ID:nSGE69R0EK] [ID:nSGE69R0I4] COLOMBIA INTRODUCES DOLLAR PURCHASES, STRUCTURAL MEASURES * Finance ministry says on Nov. 17 it will only use external financing in 2011 to meet outside obligations to ease pressure on peso <COP=>. * Central bank says on Oct. 29 it is buying at least $20 million daily until at least March 15. * Government kept $1.5 billion abroad last year, which included $1.4 billion in government dividends from state oil firm Ecopetrol. * Plans to possibly hedge up to $3.7 billion in external debt service payments in 2011. -- Story links: [ID:nN29291838] [ID:nN16108112] [ID:nN02213742] THAILAND TAXES FOREIGN BOND INVESTORS * Thailand imposes 15 percent withholding tax on interest and capital gains earned by foreign investors on Thai bonds from Oct. 13, 2010. * Central bank says on Nov. 24 would consider further measures including a Tobin-style tax on international transactions. -- Story links: [ID:nL3E6MO0SA] [ID:nSGE69B0A6] [ID:nSGE6970DX] MEXICO ESCHEWS INTERVENTION, PESO SET TO OUTPERFORM * Central bank buying $600 million per month by selling dollar put options as a means to build up its reserves. * Says capital controls do not work. * Mexican peso <MXN=> lagged gains in other markets, yet to firm back to pre-crisis levels. * Strategists see intervention measures across Latin America boosting attraction of free-floating Mexican peso. |
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krisluke
Supreme |
28-Jan-2011 13:56
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U.S. oil nears 2-mth low on weak data, OPEC output talk
* Talk of OPEC raising output cools prices
* Brent-WTI spread spikes to more than $12/bbl * Technicals show U.S. crude to fall to $83.50 * Coming Up: First reading on U.S. Q4 GDP at 1330 GMT (Adds quotes, updates prices) By Florence Tan SINGAPORE, Jan 28 (Reuters) - U.S. crude futures fell on Friday to a near two-month low on weak economic data and talk of OPEC raising output to cool prices, while a rosier outlook for Europe supported Brent. Jobless claims rose in the U.S. overnight while the head of Kuwait Petroleum Corp said OPEC may need to boost output as high oil prices threaten the global economy. Farouk al-Zanki, head of Kuwait Petroleum Corp, told Reuters in Davos, Switzerland, he is concerned that current high oil prices may contribute to the start of another global downturn as they did in 2008. "The first signs are emerging that OPEC is responding, with a thinly veiled call for an emergency OPEC meeting by a Kuwaiti official and indications others are unilaterally raising output," JPMorgan analysts led by Lawrence Eagles said in its monthly oil report. U.S. crude oil for March delivery fell 15 cents to $85.49 a barrel at 0449 GMT and is on track to extend its decline for a second straight week. ICE Brent crude for March rose 38 cents to $97.77 a barrel. Prices in the OPEC price basket have not risen high enough to justify a change in production quotas, said Ben Westmore, commodities economist at National Australia Bank. However, "if this price trend continues, it's likely that OPEC will look at raising output within the next six to 12 months," he said. The divergence in price movements of the two oil markers has pushed Brent crude's premium against U.S. benchmark crude, also known as West Texas Intermediate, to its highest since 1988. The spread surged to $12.18 a barrel on Jan. 27 at settlement. Near-record stocks in Cushing, Oklahoma, the delivery point for WTI contracts, have caused the prompt-month spreads to collapse "and the market is now firmly in the supercontango zone," JPMorgan said in a Jan. 27 note. In a contango market, the price of oil is progressively more expensive in future months than the front month. More Canadian crude is expected to flow into Cushing in March through an extension of the Keystone pipeline even though additional storage capacity is being added, JPMorgan said. "The risk of a really wide spread of $20-$30 to Gulf Coast crudes is not insignificant during the refinery maintenance season," the bank said. Reuters markets analyst Wang Tao said technical charts showed that Brent's premium to WTI crude <CL-LCO1=R> will rise to $15.30-$17.63 per barrel over the next four weeks. However, some analysts were sceptical that the Brent-WTI premium would stay high given that spikes have collapsed previously. "I do expect Tapis and Brent prices to be more in line with WTI" which is a better reflection of the fundamentally weak oil market than other benchmarks, Westmore said. The first reading of U.S. economic growth in the fourth quarter will be released later on Friday. U.S. economic growth likely accelerated in the fourth quarter of 2010, with consumer spending predicted to have increased at its fastest pace in three years. The anticipated 3.5 percent annual growth rate would be the quickest since the first quarter of last year. (Reporting by Florence Tan; Editing by Manash Goswami) |
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iPunter
Supreme |
28-Jan-2011 13:53
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The difference between me and you is that I am not angry with you, or the stock market. But you are clearly angry about something. In that case, you should stop playing the stock market. If not, the stock market will continue to play you. Anyway, my posts are all not meant for you, but for those genuine newbies who seek to learn., especially about the hazards of stock play Hehehe...
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cathylmg
Elite |
28-Jan-2011 13:43
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There is 50% chance in Toto. Either you win or your lose....
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SGG_SGG
Master |
28-Jan-2011 13:43
Yells: "karma karma karma chameleon" |
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Nothing is guaranteed in life, much less the stock market. However, seeing your postsnot specifically this one but in general), you must have been burnt many times.. with many regrets. Maybe better stay away from the stock market in that case?
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Laulan
Master |
28-Jan-2011 13:42
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Agreed.
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hotokee
Veteran |
28-Jan-2011 13:41
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Toto is also a game of luck and pitting against the operator. He surely knows how to make more money than us players. | ||||
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yummygd
Supreme |
28-Jan-2011 13:36
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BON BON that is MEAN!!! ur maid should not cook for u tonight get ur stalker goondu somore cook for u. that will be ur greatest nitemare
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krisluke
Supreme |
28-Jan-2011 13:34
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Asian stocks extend drops in broad based selling
* Inflation worries threaten to contaminate growth story * Robust earnings fail to cheer as cenbanks in focus * Japan debt taking ratings cut in stride, move expected By Saikat Chatterjee HONG KONG, Jan 28 (Reuters) - Asian stocks fell by half a percent on Friday, succumbing to a broad bout of profit-taking, as concern about rising inflation outweighed robust earnings. The Nikkei average fell by nearly 1 percent, weighed down by financial stocks, as investors worried about higher borrowing costs after Standard & Poor's cut Japan's credit rating by a notch for the first time since 2002. While the MSCI index of Asian stocks outside Japan was poised to eke out meagre gains for the week, thanks to a mild recovery in risk-appetite, Asian stocks have underperformed the MSCI world index , which has risen by 2.5 percent since the beginning of the year. A combination of worries of frothy valuations and a steady drip of positive data out of Europe and the United States have encouraged investors to take profits in some Asian markets, particularly in those that are seen as slow in tackling inflation. Barclays strategists said Asian authorities are not countering price pressures with sufficient tightening and inflation risks would continue to have a bearing on these markets. Malaysia held off from raising interest rates on Thursday while the Philippines said this week the U.S. Federal Reserve's dovish stance vindicated its low rates policy. But some other central banks in the region are stepping on the policy brakes after heavy offshore selling. India raised interest rates by a quarter point this week, its seventh such increase in less than a year, and Indonesia signalled an aggressive approach to tackling inflation. Both markets have borne the brunt of the recent selloff. India's stock index is poised to register its worst monthly performance since October 2008 and 10-year Indonesian bond yields have risen by the most since early 2009. Corporate earnings were robust, with Samsung , the world's top memory chipmaker, set to show improved results, sending its shares to a record. LIMITED IMPACT Japanese government bonds advanced, taking the ratings cut in stride, as investors focused more on the country's ample savings and largely domestically held debt. March 10-year futures opened lower, but quickly reversed losses to be up 0.20 points at 139.98 as the downgrade had largely been seen as a matter of time. On Thursday evening, it fell to as low as 139.48 immediately after the downgrade. Ten-year yields edged lower to 1.215 percent and credit default swaps widened slightly to around 83 bps, but well below peaks of near 100 bps hit in 2010. "JGBs are almost entirely owned by domestic investors, as it has often been pointed out, and that is limiting the downgrade's impact," said Jun Ishii, chief fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities. "This limits any impact of selling by foreign investors, who may take a dimmer view on JGBs in the wake of the rating cut." The euro fell, giving in to a bout of profit-taking after strong gains in the past two weeks took it to a 2-month high of $1.3760. An Asian sovereign name was spotted selling the single currency, traders said. Gold held near four-month lows, ater falling more than 2 percent the previous day, on muted safe-haven demand. (Additional reporting by Ayai Tomisawa and Shinichi Saoshiro in TOKYO; Editing by Robert Birsel) |
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iPunter
Supreme |
28-Jan-2011 13:34
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Can't really blame the maids if this is what really happens... because if say you yourself are a maid slogging away from dawn till dusk in some country, and you have not much to eat, and is at the same time having a hard time coaxing the spoilt brats to eat...
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