Wednesday, June 26, 2013

Stock futures rise to keep Tuesday momentum on sturdy data

(Reuters) - Thankfully the Stock futures rose on Wednesday, it indicates that the S&P 500 may build on its biggest gain in nearly two weeks on Tuesday, on the back of stronger-than-expected economic data.

The S&P 500 . SPX rose nearly 1 percent Tuesday, its most since June 13, as data on durable goods orders, sales of new homes and consumer confidence all topped analysts' expectations and the People's Bank of China eased concerns about a possible banking crisis in the world's second-largest economy.

Still, the benchmark S&P index remains down 3.9 percent since the Fed signaled last week that it may begin to rein in its stimulus efforts should its economic forecasts hold.

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Wednesday, June 19, 2013

Markets flatten ahead of much-anticipated Fed policy statement

LONDON -- Markets were fairly flat-footed ahead of a keenly awaited policy statement from the U.S. Federal Reserve.

The central bank wraps up a two-day policy meeting later Wednesday and investors are looking to see if policymakers are moving towards any change in its monetary policy stance. The Fed's strategy of super-low interest rates and easy money over the past few years has been designed to shore up the U.S. economy. It has also helped drive sentiment in the markets.

Fears that the Fed might reduce the amount of financial assets it buys have been behind the recent volatility - investors have become accustomed to seeing much of the money generated by the policy ending up in financial markets.

 The uncertainty was caused by comments made by Fed chairman Ben Bernanke in May and investors will be hoping for a clearer picture at the end of this month's meeting on Wednesday. Though no change is expected on Wednesday, investors will be looking for a clearer line in the accompanying Fed statement and in Bernanke's post-meeting press conference.

"If Bernanke hints at tapering in the coming months again today, we could see further selling in the weeks and months ahead," said Craig Erlam, market analyst at Alpari.

Ahead of the statement, stocks were solid if unspectacular as fears of an imminent change have been reined in over recent days. U.S. economic data has not been as strong as when Bernanke made his comments of a possible change in May.

Europe slips

In Europe, the FTSE 100 index of leading British shares was flat at 6,371 while Germany's DAX rose 0.4 percent to 8,260. Th

Nikkei extends recent gains

In Asia, trading was mixed. While, the Nikkei 225 stock average rose 1.8 percent to 13,245.22, Hong Kong's Hang Seng index fell 1.1 percent to 20,986.89, and South Korea's KOSPI index shed 0.7 percent to 1,888.31.

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Thursday, June 13, 2013

Japan’s Nikkei fell 6.4%, Philippines Plunged 7%

Japan’s Nikkei has accelerated its losses and fell 6.4% today. It has officially entered a bear market after dropping 20% since May 22.

"In my personal opinion, this is deep consolidation phase. I would expect that that's going to continue for another 3-4 weeks but afterwards I do think earnings visibility in Japan is going to pull shares higher again," said Jesper Koll, managing director at JP Morgan Securities.

However, the Philippines Stock Exchange PSEi Index top Japan’s losses with a 6.8% plunge today of its own. The PSEI Index is down 17% from its May 15 high.

Thailand and Indonesia are also suffering, The Stock Exchange of Thailand SET Index has dropped 15% since peaking on May 21, while Indonesia’s Jakarta Stock Exchange Composite Index has fallen 12% since topping out on May 20.

Tuesday, June 4, 2013

U.S. manufacturing index for April declines

US manufacturing output shrank to its lowest level in four years in May as slowing export growth and tight fiscal policy caused factories to slow production.

The Institute for Supply Management’s manufacturing index tumbled to 49 from 50.7 in April that indicates slow down in manufacturing for the first time since November 2012, when a massive storm hit the East Coast. The index dipped to its lowest level since June 2009, when it registered 45.8 percent. (A reading below 50 indicates a shrinking manufacturing sector).

Dollar rebounds as Yen weakens

dollars, exchange

Reuters reported the dollar was up 0.9 percent at 100.38 yen, recovering after a survey on Monday showed U.S. factory activity fell in May to its lowest since June 2009 sent the U.S. currency tumbling to a four-week low of 98.86 yen.

The ISM survey dimmed prospects of the Fed scaling back monetary easing soon, even though two Fed policymakers said on Monday the central bank could taper its stimulus in the coming months if data improved.

With the Fed pledging to maintain stimulus until the labor market improves, jobs numbers due on Friday will be under intense scrutiny.

Japan's pension fund helped the dollar against the yen but more positive dollar news would be needed to push it significantly higher.

The euro was steady at $1.3075, off a peak of $1.3108 reached on Monday, its highest since May 9. Resistance was seen at $1.3141, the 76.4 percent retracement of its May 1-17 fall.

The Australian dollar was down 1 percent at $0.9675 after the Reserve Bank of Australia held rates at 2.75 percent and governor Glenn Stevens said easing was still on the table.

Source: Reuters