Indonesia stock info - stock market outlook october 26 2011 ; Global stock markets were lower in cautious trade on Tuesday as investors waited in hope for a second EU summit to produce a long-awaited plan to solve the eurozone debt crisis.
Dealers said there was little reason to trade aggressively given the often conflicting news leads as officials try to thrash out the details of what European leaders say should be a comprehensive solution to the problem.
They said that, however, looks unlikely, given the competing interests involved and the issues at stake -- no less, for some, than the future of the whole eurozone project and the European Union.
In mid-afternoon trade, London's benchmark FTSE 100 index was down 0.96 percent, giving up early modest gains. Frankfurt's DAX 30 lost 0.91 percent and Paris fell 1.31 percent.
In the foreign exchange market, the European single currency was lower at $1.3891, down from $1.3930 in New York late Monday.
In New York, the blue-chip Dow Jones Industrial Average was down 1.08 percent in opening trade, with the tech-heavy Nasdaq Composite down 1.36 percent.
Dealers said Europe's leaders appeared to be still struggling to reach agreement with banks over reducing Greece's debt burden and protecting Italy from any fallout.
Jim Cunningham at Schaeffer's Investment Research said US investors were also "responding to lackluster earnings guidance from the likes of tech giant Texas Instruments and entertainment guru Netflix."
EU officials are making final preparations for a make-or-break summit in Brussels on Wednesday against a backdrop of increasing uncertainty over Italy's immediate future and wrangling over the terms of an overall debt package.
"The EU will reveal, in all its full glory, the plan to resolve southern Europe's debt crisis," said Mark Deans, dealing manager at London-based currency specialists MoneyCorp.
"Until then, those with cash to invest are inclined to bide their time," he added.
"If EU leaders get it right, that cash will go into equities, commodities and their related currencies. If they get it wrong the money will go into ... safe-havens."
Attention remains fixed on Europe, where Italy and Spain appear the next most likely victims of a crisis that many fear could spark a credit crunch and possibly another global meltdown if the problem is not remedied.
European leaders, who held talks on Sunday, appeared to make progress in their efforts to fix the continent's economic problems and put the final touches to a deal on Wednesday.
They announced few details at the weekend but promised instead to reveal all after those top-level talks.
The eurozone wants to beef up its 440-billion-euro ($610 billion) rescue fund, the European Financial Stability Facility, to convince markets it has the means to protect highly indebted nations.
Leaders also want to agree on a huge write-down on the debt of stricken Greece and make sure banks have enough reserves to withstand these losses.
Despite the apparent progress, there are concerns they might not be able to do enough because of their many differences.
"Tomorrow is the first major hurdle for the markets in seeing credible and concrete plans from EU policymakers," said VTB Capital economist Neil MacKinnon.
"There is the risk that EU plans are considered only sufficient to buy time, rather than being the masterplan which fully resolves the crisis."
Investors want to see the recent assurances turned into a definitive and binding agreement.
Investors set aside a barrage of European company results, from the likes of British oil major BP, Germany's top lender Deutsche Bank, Dutch telecoms operator KPN and Swiss banking giant UBS.
"Earnings are being pushed to the back of the mind as we approach what will be a key Eurozone decision," noted Owen Ireland, broker at Valbury Capital.
He added: "Investors will be biting their nails in anticipation of what, for the good of global economic health, needs to be a spectacularly well-considered set of measures."
Showing posts with label stock markets. Show all posts
Showing posts with label stock markets. Show all posts
will stock market crash week september 12 2011
Indonesia stock info - will stock market crash week september 12 2011 ; Sure the market could crash this week and deservedly so, but it doesn't really matter because it's just a ride.
Frankly, I could not care less whether the S&P crashes back down below 666 or if it catapults its way to new heights north of 2000. At the end of the day, it's just a ride. You see, the Market is like a ride in an amusement park. When you choose to believe in it, or take it too seriously, you think it's real, because that's how powerful our minds are. read more marketoracle.co.uk
Frankly, I could not care less whether the S&P crashes back down below 666 or if it catapults its way to new heights north of 2000. At the end of the day, it's just a ride. You see, the Market is like a ride in an amusement park. When you choose to believe in it, or take it too seriously, you think it's real, because that's how powerful our minds are. read more marketoracle.co.uk
Global stock Market summary september 5 2011
Global stock Market summary september 5 2011 : UAE stock indices retreated for a second day on Monday as stock markets in the Asia-Pacific region kicked off the week with steep declines on dismal US jobs data and resurgent worries about Europe’s debt woes.
Across the world stock markets took a battering after the worst US employment report in 11 months reignited investor nervousness and sparked fears the world’s largest economy is heading back into recession.
UAE’s leading property developer Emaar’s shares slumped for a second day by 0.4 per cent to Dh2.83, the lowest since August 28 as Dubai Islamic slipped the most since August 15 to Dh2. The DFM’s General Index fell 0.33 per cent to 1,478.84 points, the lowest since August 28.
Abu Dhabi’s ADX General Index dipped 0.37 per cent and Qatar’s QE Index declined 1.6 per cent after a four-day gain. The Bloomberg GCC 200 Index decreased 0.9 percent at 1:07pm in Riyadh and Saudi Arabia’s Tadawul All Share Index declined 1.2 per cent, the most since August 20.
Bahrain’s BB All Share Index and the Kuwait Stock Exchange Unweighted Index advanced 0.2 per cent. Oman’s MSM 30 Index gained 0.4 per cent, trading for the first time since a Muslim holiday.
The gloomy US jobs report, which showed American companies had not been hiring at all during August, comes on top of Europe’s ongoing debt problems. In Britain the FTSE 100 dropped 2.9 per cent to 5,136.36 points while Germany’s DAX fell 4.7 per cent to 5,280.13 and France’s CAC-40 toppled 4.6 per cent to 3,003.64 points.
Asia’s markets slumped with Japan’s Nikkei 225 stock average sinking 1.9 per cent to close at 8,784.46 points, Australia’s S&P/ASX 200 falling 2.4 per cent to 4,141.90 points and South Korea’s Kospi sliding 4.4 per cent to 1,785.83 points. Hong Kong’s Hang Seng slid three per cent to 19,616.4 points. Benchmarks in Singapore, Taiwan, New Zealand and the Philippines were also down. In Mainland China, the Shanghai composite index slipped 1.1 per cent, and in Taiwan, the Telex dropped 2.5 per cent. South Korea and Singapore tumbled 2.5 per cent and 2.4 percent, respectively.
Across the world stock markets took a battering after the worst US employment report in 11 months reignited investor nervousness and sparked fears the world’s largest economy is heading back into recession.
UAE’s leading property developer Emaar’s shares slumped for a second day by 0.4 per cent to Dh2.83, the lowest since August 28 as Dubai Islamic slipped the most since August 15 to Dh2. The DFM’s General Index fell 0.33 per cent to 1,478.84 points, the lowest since August 28.
Abu Dhabi’s ADX General Index dipped 0.37 per cent and Qatar’s QE Index declined 1.6 per cent after a four-day gain. The Bloomberg GCC 200 Index decreased 0.9 percent at 1:07pm in Riyadh and Saudi Arabia’s Tadawul All Share Index declined 1.2 per cent, the most since August 20.
Bahrain’s BB All Share Index and the Kuwait Stock Exchange Unweighted Index advanced 0.2 per cent. Oman’s MSM 30 Index gained 0.4 per cent, trading for the first time since a Muslim holiday.
The gloomy US jobs report, which showed American companies had not been hiring at all during August, comes on top of Europe’s ongoing debt problems. In Britain the FTSE 100 dropped 2.9 per cent to 5,136.36 points while Germany’s DAX fell 4.7 per cent to 5,280.13 and France’s CAC-40 toppled 4.6 per cent to 3,003.64 points.
Asia’s markets slumped with Japan’s Nikkei 225 stock average sinking 1.9 per cent to close at 8,784.46 points, Australia’s S&P/ASX 200 falling 2.4 per cent to 4,141.90 points and South Korea’s Kospi sliding 4.4 per cent to 1,785.83 points. Hong Kong’s Hang Seng slid three per cent to 19,616.4 points. Benchmarks in Singapore, Taiwan, New Zealand and the Philippines were also down. In Mainland China, the Shanghai composite index slipped 1.1 per cent, and in Taiwan, the Telex dropped 2.5 per cent. South Korea and Singapore tumbled 2.5 per cent and 2.4 percent, respectively.
Global market summary august 18 2011
Indonesia stock info - Global market summary august 18 2011 ; Stocks tumbled amid growing fears of a global recession, as investors confronted a grim mix of U.S. economic data and fresh concerns about Europe's banks.
The Dow Jones Industrial Average ended down 419.63 points, or 3.68%, to 10990.58. The Standard & Poor's 500-stock index dropped 53.24 points, or 4.46%, to 1140.65, while the Nasdaq Composite lost 131.05 points, or 5.22%, to 2380.43.
In the flight to safety Thursday, investors piled into gold, which jumped to a record of $1,818.90 a troy ounce. In the Treasurys market, the yield on the benchmark 10-year note briefly dipped below 2% in intraday trading for the first time since at least 1954, as investors sought refuge in U.S. debt.
"If it's not a recession, it sure feels like one. And if it feels like one, it doesn't matter if you can prove it with statistics or not," said John Hailer, president and CEO of Natixis Global Asset Management in the U.S. and Asia.
The heaviest selling came in energy and materials stocks, as commodities prices sank. Among Dow components, United Technologies fell $3.93 a share, or 5.5%, to $68.12; Alcoa lost 75 cents, or 6.1%, to 11.51; and Caterpillar tumbled 4.31, or 4.9%, to 88.33. Among big oil firms, Chevron lost 4.44, or 4.6%, to 93.24 and Exxon Mobil was off 3.22, or 4.3%, to 70.94.
Bank stocks were also under significant pressure. Bank of America was the biggest decliner among the Dow components, tumbling 45 cents, or 6%, to 7.01, while J.P. Morgan Chase lost 1.38, or 3.8%, to 35.19. Citigroup fell 1.87, or 6.3%, to 27.98 while Morgan Stanley declined 81 cents, or 4.8%, to 16.20.
"Investor nerves are raw," said John Lynch, chief investment officer for Wells Fargo Bank in the mid-Atlantic region. "A recession can become a self-fulfilling prophecy."
Hewlett-Packard, one of the biggest stock laggards on the day, briefly reversed its morning slump after reports that the world's biggest computer maker will spin off its personal-computer business and is close to a $10 billion deal to acquire U.K. software firm Autonomy. H-P, which took the unusual step of reporting quarterly earnings during trading hours, fell 1.88, or 6%, to 29.51 despite earnings and revenue coming in largely in line with analyst expectations.
Transportation stocks, which are particularly sensitive to economic growth concerns, were hit hard. The Dow Jones Transportation Average, an index of 20 railroad, airline and shipping stocks, tumbled 6.1%. American Airlines parent AMR fell 26 cents, or 6.8%, to 3.54; Kansas City Southern dropped 6.49, or 12%, to 47.47; and FedEx lost 4.67, or 5.9%, to 74.46.
All 10 sectors of the S&P 500 were lower, with 98% of the 500 component stocks falling. The CBOE Market Volatility Index, the "fear gauge" known as the VIX, surged 37%. With just minutes to go in trading, the Dow was near its intraday low, down 529 points, before snapping back to finish slightly higher.
Trading volumes were in line with recent trading days, which have seen a jump in activity. About 6.3 billion shares changed hands in New York Stock Exchange composite volume, well above the daily average this year of about 4.3 billion shares.
Relatively stronger were safe-haven stock sectors, with utilities, consumer-staples, telecommunications and health-care stocks the best performers of the day.
The U.S. declines came after sharp losses in European and Asian markets. The Stoxx Europe 600 slumped 4.8%, and Germany's DAX index plunged 5.8%. Asian bourses also fell; Japan's Nikkei Stock Index ended down 1.3%, to a five-month low, while China's Shanghai Composite declined 1.6%.
European banks led the declines, in part after The Wall Street Journal reported that U.S. federal and state regulators were intensifying their scrutiny of the U.S. arms of Europe's biggest banks, worrying about spillover from Europe's debt crisis into the U.S. banking system. Societe Generale fell 12% in Paris, Intesa Sanpaolo dropped 9.3% in Milan, and Barclays was off 11% in London.
Others pointed to Morgan Stanley, which late Wednesday cut its 2011 euro-area gross domestic product growth forecast to 1.7% from 2%, and its 2012 GDP growth forecast to 0.5%, from a previous estimate of 1.2%.
Adding to the gloom were discouraging economic reports that showed rising inflation and little traction on hiring. A reading of Philadelphia-area manufacturing plunged to negative-30.7 from 3.2 in July, the lowest reading in two years. Economists had been expecting a gain. Existing-home sales also tumbled 3.5% in July, defying hopes for a gain.
"If we had a strong economy, we could probably shrug off some of these Europe concerns, but the numbers are just showing complete stagnation--we've leveled off and there doesn't seem to be continual improvement," said Randy Frederick, director of trading and derivatives for Charles Schwab.
Quincy Krosby, market strategist at Prudential Financial, said that the return of violent stock market swings over the past few weeks are "indicative of a bear market, not a bull market."
"The euro sovereign debt issues, coupled with increasing concerns over global growth, particularly with the U.S. data today, makes for a nasty, nasty market," Ms. Krosby said. "The market is craving a policy response. We're in a season of volatility and we don't see a policy response, either from the Europeans and in the U.S."
Following a week that saw European stocks rally on the heels of short-selling bans on the continent, investors took a more cautious view after German and French leaders failed earlier this week to come up with concrete proposals to more meaningfully address sovereign-debt problems.
Thursday's stock declines puts the major indexes deep into the red for the week, a day after the Dow had battled to a stalemate on Wednesday, edging up four points. The Dow is now off 9.5% for the month.
Gold futures benefited from safe-haven flows amid the uncertainty, while crude-oil futures tumbled 5.9% amid the economic concerns, to $82.38 a barrel. The euro fell against the dollar. Treasurys finished sharply higher, with the yield on the 10-year note finishing at 2.083%-- a nearly three-year low.
On the economic front, new jobless claims rose by 9,000 to 408,000 last week, the latest sign of a persistently weak U.S. labor market. Consumer inflation resumed its climb in July, as gasoline prices rebounded and food costs continued to rise. Consumer prices rose 0.5% from June, the largest monthly increase since March. On an annualized basis, consumer prices were up by 3.6% in July, above the Federal Reserve's target.
Mid-Atlantic manufacturing activity, meanwhile, contracted at a sharp pace in August, and expectations plummeted. The Philadelphia Fed said its index of general business activity within the factory sector fell to -30.7 this month, from 3.2 in July and -7.7 in June. Economists had expected a reading of 1.5 in August.
In corporate news, NetApp plunged 5.85, or 14%, to 35.81 to lead the S&P 500 decliners after fiscal first-quarter profit fell short of forecasts.
JDS Uniphase shed 1.49, or 13%, to 10.21 after issuing a lower-than-expected outlook for revenue.
Sears Holdings fell 4.91, or 8.2%, to 55.23 after the retailer's fiscal second-quarter loss widened amid added markdowns to clear seasonal inventory, which hurt sales and margins.
Ross Stores dropped 96 cents, or 1.3%, to 70.84 after the discount retailer projected per-share earnings below analysts' estimates and spoke cautiously about the second half of the year, citing uncertainty about how consumers will be affected by stock-market volatility and increased economic uncertainty.
Food company J.M. Smucker slumped 5.54, or 7.3%, to 70.02 after fiscal first-quarter earnings rose 8.4% but revenues fell short of analyst expectations.
The Dow Jones Industrial Average ended down 419.63 points, or 3.68%, to 10990.58. The Standard & Poor's 500-stock index dropped 53.24 points, or 4.46%, to 1140.65, while the Nasdaq Composite lost 131.05 points, or 5.22%, to 2380.43.
In the flight to safety Thursday, investors piled into gold, which jumped to a record of $1,818.90 a troy ounce. In the Treasurys market, the yield on the benchmark 10-year note briefly dipped below 2% in intraday trading for the first time since at least 1954, as investors sought refuge in U.S. debt.
"If it's not a recession, it sure feels like one. And if it feels like one, it doesn't matter if you can prove it with statistics or not," said John Hailer, president and CEO of Natixis Global Asset Management in the U.S. and Asia.
The heaviest selling came in energy and materials stocks, as commodities prices sank. Among Dow components, United Technologies fell $3.93 a share, or 5.5%, to $68.12; Alcoa lost 75 cents, or 6.1%, to 11.51; and Caterpillar tumbled 4.31, or 4.9%, to 88.33. Among big oil firms, Chevron lost 4.44, or 4.6%, to 93.24 and Exxon Mobil was off 3.22, or 4.3%, to 70.94.
Bank stocks were also under significant pressure. Bank of America was the biggest decliner among the Dow components, tumbling 45 cents, or 6%, to 7.01, while J.P. Morgan Chase lost 1.38, or 3.8%, to 35.19. Citigroup fell 1.87, or 6.3%, to 27.98 while Morgan Stanley declined 81 cents, or 4.8%, to 16.20.
"Investor nerves are raw," said John Lynch, chief investment officer for Wells Fargo Bank in the mid-Atlantic region. "A recession can become a self-fulfilling prophecy."
Hewlett-Packard, one of the biggest stock laggards on the day, briefly reversed its morning slump after reports that the world's biggest computer maker will spin off its personal-computer business and is close to a $10 billion deal to acquire U.K. software firm Autonomy. H-P, which took the unusual step of reporting quarterly earnings during trading hours, fell 1.88, or 6%, to 29.51 despite earnings and revenue coming in largely in line with analyst expectations.
Transportation stocks, which are particularly sensitive to economic growth concerns, were hit hard. The Dow Jones Transportation Average, an index of 20 railroad, airline and shipping stocks, tumbled 6.1%. American Airlines parent AMR fell 26 cents, or 6.8%, to 3.54; Kansas City Southern dropped 6.49, or 12%, to 47.47; and FedEx lost 4.67, or 5.9%, to 74.46.
All 10 sectors of the S&P 500 were lower, with 98% of the 500 component stocks falling. The CBOE Market Volatility Index, the "fear gauge" known as the VIX, surged 37%. With just minutes to go in trading, the Dow was near its intraday low, down 529 points, before snapping back to finish slightly higher.
Trading volumes were in line with recent trading days, which have seen a jump in activity. About 6.3 billion shares changed hands in New York Stock Exchange composite volume, well above the daily average this year of about 4.3 billion shares.
Relatively stronger were safe-haven stock sectors, with utilities, consumer-staples, telecommunications and health-care stocks the best performers of the day.
The U.S. declines came after sharp losses in European and Asian markets. The Stoxx Europe 600 slumped 4.8%, and Germany's DAX index plunged 5.8%. Asian bourses also fell; Japan's Nikkei Stock Index ended down 1.3%, to a five-month low, while China's Shanghai Composite declined 1.6%.
European banks led the declines, in part after The Wall Street Journal reported that U.S. federal and state regulators were intensifying their scrutiny of the U.S. arms of Europe's biggest banks, worrying about spillover from Europe's debt crisis into the U.S. banking system. Societe Generale fell 12% in Paris, Intesa Sanpaolo dropped 9.3% in Milan, and Barclays was off 11% in London.
Others pointed to Morgan Stanley, which late Wednesday cut its 2011 euro-area gross domestic product growth forecast to 1.7% from 2%, and its 2012 GDP growth forecast to 0.5%, from a previous estimate of 1.2%.
Adding to the gloom were discouraging economic reports that showed rising inflation and little traction on hiring. A reading of Philadelphia-area manufacturing plunged to negative-30.7 from 3.2 in July, the lowest reading in two years. Economists had been expecting a gain. Existing-home sales also tumbled 3.5% in July, defying hopes for a gain.
"If we had a strong economy, we could probably shrug off some of these Europe concerns, but the numbers are just showing complete stagnation--we've leveled off and there doesn't seem to be continual improvement," said Randy Frederick, director of trading and derivatives for Charles Schwab.
Quincy Krosby, market strategist at Prudential Financial, said that the return of violent stock market swings over the past few weeks are "indicative of a bear market, not a bull market."
"The euro sovereign debt issues, coupled with increasing concerns over global growth, particularly with the U.S. data today, makes for a nasty, nasty market," Ms. Krosby said. "The market is craving a policy response. We're in a season of volatility and we don't see a policy response, either from the Europeans and in the U.S."
Following a week that saw European stocks rally on the heels of short-selling bans on the continent, investors took a more cautious view after German and French leaders failed earlier this week to come up with concrete proposals to more meaningfully address sovereign-debt problems.
Thursday's stock declines puts the major indexes deep into the red for the week, a day after the Dow had battled to a stalemate on Wednesday, edging up four points. The Dow is now off 9.5% for the month.
Gold futures benefited from safe-haven flows amid the uncertainty, while crude-oil futures tumbled 5.9% amid the economic concerns, to $82.38 a barrel. The euro fell against the dollar. Treasurys finished sharply higher, with the yield on the 10-year note finishing at 2.083%-- a nearly three-year low.
On the economic front, new jobless claims rose by 9,000 to 408,000 last week, the latest sign of a persistently weak U.S. labor market. Consumer inflation resumed its climb in July, as gasoline prices rebounded and food costs continued to rise. Consumer prices rose 0.5% from June, the largest monthly increase since March. On an annualized basis, consumer prices were up by 3.6% in July, above the Federal Reserve's target.
Mid-Atlantic manufacturing activity, meanwhile, contracted at a sharp pace in August, and expectations plummeted. The Philadelphia Fed said its index of general business activity within the factory sector fell to -30.7 this month, from 3.2 in July and -7.7 in June. Economists had expected a reading of 1.5 in August.
In corporate news, NetApp plunged 5.85, or 14%, to 35.81 to lead the S&P 500 decliners after fiscal first-quarter profit fell short of forecasts.
JDS Uniphase shed 1.49, or 13%, to 10.21 after issuing a lower-than-expected outlook for revenue.
Sears Holdings fell 4.91, or 8.2%, to 55.23 after the retailer's fiscal second-quarter loss widened amid added markdowns to clear seasonal inventory, which hurt sales and margins.
Ross Stores dropped 96 cents, or 1.3%, to 70.84 after the discount retailer projected per-share earnings below analysts' estimates and spoke cautiously about the second half of the year, citing uncertainty about how consumers will be affected by stock-market volatility and increased economic uncertainty.
Food company J.M. Smucker slumped 5.54, or 7.3%, to 70.02 after fiscal first-quarter earnings rose 8.4% but revenues fell short of analyst expectations.
Stock market outlook for week august 22 2011
Indonesia stock info - Stock market outlook for week august 22 2011 ; The sharp drop in the equities market comes amid a period of high volatility that has been accentuated by low trading volumes, concerns over the euro zone sovereign debt and its potential impact on the banking sector, and recent data that has economists lowering their outlooks for global economic growth.
The U.S. declines came after sharp losses in European and Asian markets. The Stoxx Europe 600 slumped 4.8%, and Germany's DAX index plunged 5.8%. Asian bourses also fell; Japan's Nikkei Stock Index ended down 1.3%, to a five-month low, while China's Shanghai Composite declined 1.6%.
European banks led the declines, in part after The Wall Street Journal reported that U.S. federal and state regulators were intensifying their scrutiny of the U.S. arms of Europe's biggest banks, worrying about spillover from Europe's debt crisis into the U.S. banking system. Societe Generale fell 12% in Paris, Intesa Sanpaolo dropped 9.3% in Milan, and Barclays was off 11% in London.
The U.S. declines came after sharp losses in European and Asian markets. The Stoxx Europe 600 slumped 4.8%, and Germany's DAX index plunged 5.8%. Asian bourses also fell; Japan's Nikkei Stock Index ended down 1.3%, to a five-month low, while China's Shanghai Composite declined 1.6%.
European banks led the declines, in part after The Wall Street Journal reported that U.S. federal and state regulators were intensifying their scrutiny of the U.S. arms of Europe's biggest banks, worrying about spillover from Europe's debt crisis into the U.S. banking system. Societe Generale fell 12% in Paris, Intesa Sanpaolo dropped 9.3% in Milan, and Barclays was off 11% in London.
Global Stock market Summary august 17 2011
Indonesia stock info - Global Stock market Summary august 17 2011 ; European stocks ended mixed Wednesday, helped off lows by strong earnings from a handful of U.S. retailers.
Shares in Japan and Taiwan ended lower on lingering concerns over European economic troubles, while Australian stocks advanced as a set of upbeat earnings reports encouraged more bargain buying.
Investors shied away from European bank and financial stocks following a controversial proposal by German and French leaders for a tax on financial transactions.
The tax announcement, which caused exchanges and financial stocks to plunge, was announced late Tuesday by French President Nicolas Sarkozy and German Chancellor Angela Merkel.
Deutsche Börse slumped 5.8%, as investors feared such a plan would hurt exchange operators' business volumes and margins. Although it was suggested the U.K. market wouldn't follow suit, London Stock Exchange fell 2.8%, while Paris-listed shares of NYSE Euronext dropped 4.7%.
Interdealer broker Icap, which acts as a broker to financial institutions dropped 3.7% in London. Among banks, Royal Bank of Scotland Group fell 3.8% in London and Deutsche Bank dropped 2.2% in Frankfurt.
Firmer U.S. equity markets earlier helped some of Europe's main indexes out of the doldrums. The Stoxx Europe 600 index ended up 0.2% at 238.05. The U.K.'s FTSE 100 closed down 0.5% at 5331.60, and Germany's DAX slipped 0.8% to 5948.94. France's CAC-40 gained 0.7% at 3254.34.
In PARIS,
Veolia Environnement rose 2.5% and Sanofi gained 2.8% as utilities and drug companies generally performed well across the continent.
In COPENHAGEN,
Carlsberg tumbled nearly 18% after the brewer reported a 22% drop in profit and cut its outlook for the year as markets in Northern and Western Europe are expected to shrink slightly. Vestas Wind Systems surged 24% after the wind turbine maker reported better-than-expected quarterly results.
In FRANKFURT,
Aixtron SE fell 11% after Deutsche Bank downgraded the semiconductor-equipment company to "hold" from "buy," saying recent market volatility could hurt orders.
In ZURICH,
Roche Holding rose 1.7% after the U.S. Food and Drug Administration approved its skin-cancer drug Zelboraf.
In LONDON,
gold and silver miner Fresnillo rallied 5.6%, helped by strengthening gold prices.
In Asia,
mainland Chinese stocks declined on worries about monetary tightening, while Hong Kong shares overcame choppy afternoon trading to edge higher after Chinese Vice Premier Li Keqiang—visiting the city—announced proposals affirming Hong Kong's status as a key offshore financial hub.
Japan's Nikkei Stock Average ended the day 0.6% lower at 9057.26, Taiwan's Taiex shed 0.7% at 7741.76 and China's Shanghai Composite fell 0.3% to 2601.26.
In contrast, Australia's S&P/ASX 200 index added 1.3% to 4303.90, South Korea's Kospi advanced 0.7% to 1892.67 and India's Sensex also advanced 0.7%, to 16840.80. Hong Kong's Hang Seng Index rose 0.4% to 20289.03, though that was well off the day's high, with the market losing ground after European markets opened on a weak note.
In HONG KONG,
financial stocks climbed, continuing to recover recent losses, with heavyweight HSBC Holdings adding 1.5% and BOC Hong Kong Holdings jumping 4.4%.
In SYDNEY,
investors absorbed a wash of corporate earnings, with pallet maker Brambles advancing 4.4% after it posted a rise in full-year profit and announced plans to sell its Recall document-management business.Woodside Petroleum rose 1.2% after the company's first-half profit topped forecasts.
In TOKYO,
real-estate firms Mitsui Fudosan and Mitsubishi Estate shed 1.9% and 0.7%, respectively. Exporters also lost ground, with Honda Motor falling 2.5% and Suzuki Motor declining 1.4%.
Shares mostly rose in the Americas.
In MEXICO CITY, the IPC index added 0.3% to 34049.58.
Shares in Japan and Taiwan ended lower on lingering concerns over European economic troubles, while Australian stocks advanced as a set of upbeat earnings reports encouraged more bargain buying.
Investors shied away from European bank and financial stocks following a controversial proposal by German and French leaders for a tax on financial transactions.
The tax announcement, which caused exchanges and financial stocks to plunge, was announced late Tuesday by French President Nicolas Sarkozy and German Chancellor Angela Merkel.
Deutsche Börse slumped 5.8%, as investors feared such a plan would hurt exchange operators' business volumes and margins. Although it was suggested the U.K. market wouldn't follow suit, London Stock Exchange fell 2.8%, while Paris-listed shares of NYSE Euronext dropped 4.7%.
Interdealer broker Icap, which acts as a broker to financial institutions dropped 3.7% in London. Among banks, Royal Bank of Scotland Group fell 3.8% in London and Deutsche Bank dropped 2.2% in Frankfurt.
Firmer U.S. equity markets earlier helped some of Europe's main indexes out of the doldrums. The Stoxx Europe 600 index ended up 0.2% at 238.05. The U.K.'s FTSE 100 closed down 0.5% at 5331.60, and Germany's DAX slipped 0.8% to 5948.94. France's CAC-40 gained 0.7% at 3254.34.
In PARIS,
Veolia Environnement rose 2.5% and Sanofi gained 2.8% as utilities and drug companies generally performed well across the continent.
In COPENHAGEN,
Carlsberg tumbled nearly 18% after the brewer reported a 22% drop in profit and cut its outlook for the year as markets in Northern and Western Europe are expected to shrink slightly. Vestas Wind Systems surged 24% after the wind turbine maker reported better-than-expected quarterly results.
In FRANKFURT,
Aixtron SE fell 11% after Deutsche Bank downgraded the semiconductor-equipment company to "hold" from "buy," saying recent market volatility could hurt orders.
In ZURICH,
Roche Holding rose 1.7% after the U.S. Food and Drug Administration approved its skin-cancer drug Zelboraf.
In LONDON,
gold and silver miner Fresnillo rallied 5.6%, helped by strengthening gold prices.
In Asia,
mainland Chinese stocks declined on worries about monetary tightening, while Hong Kong shares overcame choppy afternoon trading to edge higher after Chinese Vice Premier Li Keqiang—visiting the city—announced proposals affirming Hong Kong's status as a key offshore financial hub.
Japan's Nikkei Stock Average ended the day 0.6% lower at 9057.26, Taiwan's Taiex shed 0.7% at 7741.76 and China's Shanghai Composite fell 0.3% to 2601.26.
In contrast, Australia's S&P/ASX 200 index added 1.3% to 4303.90, South Korea's Kospi advanced 0.7% to 1892.67 and India's Sensex also advanced 0.7%, to 16840.80. Hong Kong's Hang Seng Index rose 0.4% to 20289.03, though that was well off the day's high, with the market losing ground after European markets opened on a weak note.
In HONG KONG,
financial stocks climbed, continuing to recover recent losses, with heavyweight HSBC Holdings adding 1.5% and BOC Hong Kong Holdings jumping 4.4%.
In SYDNEY,
investors absorbed a wash of corporate earnings, with pallet maker Brambles advancing 4.4% after it posted a rise in full-year profit and announced plans to sell its Recall document-management business.Woodside Petroleum rose 1.2% after the company's first-half profit topped forecasts.
In TOKYO,
real-estate firms Mitsui Fudosan and Mitsubishi Estate shed 1.9% and 0.7%, respectively. Exporters also lost ground, with Honda Motor falling 2.5% and Suzuki Motor declining 1.4%.
Shares mostly rose in the Americas.
In MEXICO CITY, the IPC index added 0.3% to 34049.58.
stock markets outlook for week august 15 2011
Indonesia stock info stock markets outlook for week august 15 2011 ; Emerging-market stocks fell for the third week in a row as confidence among U.S. consumers plunged to a three-decade low while investors pulled the most money from global stock funds since 2008, adding to concern that the world’s economic growth is slowing.
U.S. stocks rose, capping a week of record swings for the Standard & Poor’s 500 Index, as an increase in retail sales tempered concern the economy is slowing. European shares extended a rebound from a two-year low after some nations banned short-sales. Treasuries gained.
The MSCI Emerging Markets Index was little changed as of 4:30 p.m. in New York, sending the gauge down 4.9 percent this week. Increases in Latin American stock markets, including Brazil, Chile and Colombia, helped blunt declines in India, South Korea and Taiwan. Most eastern European markets gained after short-selling bans were imposed in four Euro-region nations.
The MSCI gauge has dropped 18 percent from its May 2 high, sending valuations to 9.1 times analysts’ 12-month profit estimates, 30 percent below the 20-year average, data compiled by Bloomberg and Morgan Stanley show.
The downgrade of America’s top credit rating by Standard & Poor’s, weaker-than-forecast U.S. economic data and signs that Italy and Spain may struggle to refinance debt have eroded investor confidence in riskier assets this month, erasing more than $6.8 trillion of global stock-market value from July 26 through yesterday.
Most emerging-market currencies weakened versus the dollar for the week, led by the South African rand with a 3.6 percent drop and Poland’s zloty, which lost 3.3 percent. China’s yuan rose 0.8 percent, the best performer among 25 emerging economies, as the nation reported its biggest trade surplus in two years.
Brazil’s Bovespa Index edged up 0.2 percent, posting its first weekly gain in three. Petroleo Brasileiro SA, the state- controlled oil company advanced for the fourth day. Chile’s Lan, Latin America’s largest airline by market share, was recommended for “approval without restrictions” for its planned takeover of Tam SA by Brazil’s Finance Ministry. Both airlines gained.
U.S. stocks rose, capping a week of record swings for the Standard & Poor’s 500 Index, as an increase in retail sales tempered concern the economy is slowing. European shares extended a rebound from a two-year low after some nations banned short-sales. Treasuries gained.
The MSCI Emerging Markets Index was little changed as of 4:30 p.m. in New York, sending the gauge down 4.9 percent this week. Increases in Latin American stock markets, including Brazil, Chile and Colombia, helped blunt declines in India, South Korea and Taiwan. Most eastern European markets gained after short-selling bans were imposed in four Euro-region nations.
The MSCI gauge has dropped 18 percent from its May 2 high, sending valuations to 9.1 times analysts’ 12-month profit estimates, 30 percent below the 20-year average, data compiled by Bloomberg and Morgan Stanley show.
The downgrade of America’s top credit rating by Standard & Poor’s, weaker-than-forecast U.S. economic data and signs that Italy and Spain may struggle to refinance debt have eroded investor confidence in riskier assets this month, erasing more than $6.8 trillion of global stock-market value from July 26 through yesterday.
Most emerging-market currencies weakened versus the dollar for the week, led by the South African rand with a 3.6 percent drop and Poland’s zloty, which lost 3.3 percent. China’s yuan rose 0.8 percent, the best performer among 25 emerging economies, as the nation reported its biggest trade surplus in two years.
Brazil’s Bovespa Index edged up 0.2 percent, posting its first weekly gain in three. Petroleo Brasileiro SA, the state- controlled oil company advanced for the fourth day. Chile’s Lan, Latin America’s largest airline by market share, was recommended for “approval without restrictions” for its planned takeover of Tam SA by Brazil’s Finance Ministry. Both airlines gained.
Stock Markets Summary week August 13 2011
Indonesia stock info -- Stock Markets Summary week August 13 2011 ; World stock markets finished a rollercoaster week on a high note on Friday, with traders breathing easier but still jittery over the shock waves of slower growth, the US credit downgrade and eurozone debt fears.
For the week, the Dow Jones Industrial Average fell 1.5 per cent, the SP 500 1.7 per cent and the Nasdaq 0.96 per cent.
In Europe London's FTSE index stood out as a gainer, adding 1.39 per cent, but the other markets tumbled: the CAC 40 lost 2.0 per cent for the week, and the DAX, 3.8 per cent.
In Asia the Nikkei tumbled 3.6 per cent for the week, while the Hang Seng Index of Hong Kong gave up 4.3 per cent.
The first spark to a huge selloff on Monday was Standard Poor's controversial, historic downgrade of the US credit rating. That sent US stocks on their second plunge in three days, after one the previous Thursday, with an impact that was echoed around the world.
Markets thrashed around on Tuesday as new worries surfaced in Europe over the debt crisis possibly enveloping Italy and Spain, but mostly recovered their losses for the day on assurances from the European Central Bank, and the US Federal Reserve's pledge to keep interest rates ultra-low for two more years because of sagging economic growth.
But the Fed move bared the touchiness of the markets - the Dow first rose, then plunged, and then rocketed back up on the rate news.
Wednesday more rumours in Europe, including that France might be downgraded in the wake of the United States, sent markets tumbling again; bank stocks were a focus of selloffs in both Europe and the US.
Thursday, the markets shot up again, as European authorities strained to calm the rumour mill while American traders turned their focus back to individual stocks and their valuations.
Finally on Friday, the markets held onto and added to the gains of the day before, helped by a ban of short sales of bank stocks in four European countries and reasonably positive data on consumer spending in the United States.
The turbulence sent investors and businesses fleeing to safe-havens, and gold pushed to a record high on Thursday at $1,814.95, before dropping off to around $1,746 late on Friday.
Investors also sought out the Japanese yen and Swiss franc, prompting interventions by Japan's and Switzerland's central banks to prevent further rises.
And despite the US downgrade, traders fled into US Treasury bonds, sending yields at one point on Wednesday to historic lows. By the end of the week, the US benchmark bonds were still hovering near their lowest yields ever.
While calm returned on Friday, all the sources of the jitters - Europe's dubious capacity to get a hold onto its debt problems; Washington's ability to address the debt-and-deficit issues SP singled out - remained in the air.
Forex markets were also less turbulent on Friday, with valuations moving back to levels from the previous week. Late on Friday the euro was at 1.1084 Swiss francs, and bought $1.4250.
The dollar was trading at 76.78 yen and 0.7778 Swiss francs; the British pound bought $1.6281. China's yuan meanwhile continued its steady climb against the dollar during the week, the dollar dropping to 6.39 yuan compared to 6.45 a week earlier.
For the week, the Dow Jones Industrial Average fell 1.5 per cent, the SP 500 1.7 per cent and the Nasdaq 0.96 per cent.
In Europe London's FTSE index stood out as a gainer, adding 1.39 per cent, but the other markets tumbled: the CAC 40 lost 2.0 per cent for the week, and the DAX, 3.8 per cent.
In Asia the Nikkei tumbled 3.6 per cent for the week, while the Hang Seng Index of Hong Kong gave up 4.3 per cent.
The first spark to a huge selloff on Monday was Standard Poor's controversial, historic downgrade of the US credit rating. That sent US stocks on their second plunge in three days, after one the previous Thursday, with an impact that was echoed around the world.
Markets thrashed around on Tuesday as new worries surfaced in Europe over the debt crisis possibly enveloping Italy and Spain, but mostly recovered their losses for the day on assurances from the European Central Bank, and the US Federal Reserve's pledge to keep interest rates ultra-low for two more years because of sagging economic growth.
But the Fed move bared the touchiness of the markets - the Dow first rose, then plunged, and then rocketed back up on the rate news.
Wednesday more rumours in Europe, including that France might be downgraded in the wake of the United States, sent markets tumbling again; bank stocks were a focus of selloffs in both Europe and the US.
Thursday, the markets shot up again, as European authorities strained to calm the rumour mill while American traders turned their focus back to individual stocks and their valuations.
Finally on Friday, the markets held onto and added to the gains of the day before, helped by a ban of short sales of bank stocks in four European countries and reasonably positive data on consumer spending in the United States.
The turbulence sent investors and businesses fleeing to safe-havens, and gold pushed to a record high on Thursday at $1,814.95, before dropping off to around $1,746 late on Friday.
Investors also sought out the Japanese yen and Swiss franc, prompting interventions by Japan's and Switzerland's central banks to prevent further rises.
And despite the US downgrade, traders fled into US Treasury bonds, sending yields at one point on Wednesday to historic lows. By the end of the week, the US benchmark bonds were still hovering near their lowest yields ever.
While calm returned on Friday, all the sources of the jitters - Europe's dubious capacity to get a hold onto its debt problems; Washington's ability to address the debt-and-deficit issues SP singled out - remained in the air.
Forex markets were also less turbulent on Friday, with valuations moving back to levels from the previous week. Late on Friday the euro was at 1.1084 Swiss francs, and bought $1.4250.
The dollar was trading at 76.78 yen and 0.7778 Swiss francs; the British pound bought $1.6281. China's yuan meanwhile continued its steady climb against the dollar during the week, the dollar dropping to 6.39 yuan compared to 6.45 a week earlier.
What Will Happen When the Market Crash of 2011 Turns Into the Recession of 2012
Indonesia stock info - What Will Happen When the Market Crash of 2011 Turns Into the Recession of 2012 ; How far does the stock market have to go down before we officially call it a crash? The Dow is now down more than 2,000 points in just the last 14 trading days. So can we now call this "The Stock Market Crash of 2011"? Today the Dow was down 519 points.
Yesterday, an announcement by the Federal Reserve indicating that the Fed would keep interest rates near zero until mid-2013 helped the Dow surge more than 400 points, but all of those gains were wiped out today. It turns out that the Federal Reserve was only able to stabilize the financial markets for a single day. Fears about the European sovereign debt crisis and the crumbling U.S. economy continue to dominate the marketplace. With each passing day, things are looking more and more like 2008 all over again. So what is going to happen if "The Stock Market Crash of 2011" pushes the U.S. economy into "The Recession of 2012"?
Just like in 2008, bank stocks are being hit the hardest. That was true once again today. Bank of America (BAC) was down more than 10 percent, Citigroup was down more than 10 percent, Morgan Stanley was down more than 9 percent and JPMorgan Chase was down more than 5 percent.
Bank of America stock is down almost 50 percent so far this year. Overall, the S&P financial sector is down more than 23 percent in 2011 so far.
How soon will it be before we start hearing of the need for more bailouts? After all, the "too big to fail" banks are even bigger now than they were in 2008.
All of this panic is causing the price of gold to reach unprecedented heights. Today, gold was over $1,800 at one point. If the current panic continues for an extended period of time, there is no telling how high the price of gold may go.
In the United States, much of the focus has been on the fact that the U.S. government has lost its AAA credit rating, but the truth is that the European sovereign debt crisis is probably the biggest cause of the instability in world financial markets right now.
The European Central Bank has decided to start purchasing Italian and Spanish debt, and there have been rumors that French debt could be hit with a downgrade. Europe is a total financial basket case right now and unless dramatic action is taken things are going to get progressively worse.
Of course the U.S. is also certainly contributing greatly to this crisis. The federal government is on track to have a budget deficit that is over a trillion dollars for the third year in a row. The U.S national debt is a horrific nightmare, but our politicians keep putting off budget cuts.
The debt ceiling deal that was just reached basically does next to nothing to cut the budget before the next election. Unless the "Super Congress" does something dramatic, the only "budget cuts" we will see before the 2012 election will be 25 billion dollars in "savings" from spending increases that will be cancelled.
The modest spending cuts scheduled to go into effect beginning in 2013 will probably never materialize. Whenever the time comes to actually significantly cut the budget, our politicians always want to put it off for another time.
But in the end, debt is always going to have its day. Our politicians can try to kick the can down the road all they want, but eventually a day of reckoning is going to come.
In fact, if the U.S. and Europe had not piled up so much debt, we would not be facing all of the problems we are dealing with now.
Things could have been so much different.
But here we are.
The truth is that this debt crisis is just beginning. There is no magic potion that is going to make all of this debt suddenly disappear.
Most Americans have no idea how much financial pain is coming. We have been living way beyond our means for decades, and now we are going to start paying for it.
Now that long-term U.S. government debt has been downgraded, huge numbers of other securities are also going to be affected. In fact, according to a recent Bloomberg article, S&P has already been very busy slashing the ratings on hordes of municipal bonds.
Standard & Poor’s lowered the AAA ratings of thousands of municipal bonds tied to the federal government, including housing securities and debt backed by leases, following its Aug. 5 downgrade of the U.S.
That is the thing about financial markets - once the dominoes start to fall, the ripple effects can be felt for a long, long time.
So if this stock market crash gets even worse, will the Federal Reserve respond with even stronger measures?
They have already basically promised to keep interest rates near zero for the next two years. So what else can the Fed do?
Well, many now believe that there is a very good chance that we could see another round of quantitative easing.
Not that more quantitative easing is going to help much of anything. Rather than helping the economy, the last round of quantitative easing just pushed commodity prices through the roof. But the Fed is unlikely to just sit there and do nothing while financial markets struggle.
But it is not just the financial markets that are having a difficult time right now. Bad news is coming in from all over the economy. The possibility that we could soon slip into another major recession is growing by the day.
Unfortunately, our economy is so weak already that a new recession would probably hurt even more than the last recession did.
Mark Zandi, the chief economist at Moody's Analytics, says that if we have another recession it "won't feel like a new recession. It would likely feel like a depression."
But the American people are in no mood for more economic pain. Every recent poll shows that Americans are already fed up.
For example, a brand new Reuters/Ipsos poll found that 73 percent of the American people believe that the country is "on the wrong track."
So let's certainly hope that the current stock market crash does not set off another major global recession. We certainly do not need things to get significantly worse than they are right now.
But whether it hits now or later, the truth is that a whole lot of economic pain is on the way. The U.S. and Europe have been making really, really bad decisions for decades, and we are not going to be able to escape the consequences of those decisions.
The global financial system is one huge mountain of leverage, risk and debt. A collapse is inevitable.
When you build a house of cards on a foundation of sand, you should not be surprised when it comes crashing down. The next wave of the economic collapse is coming, and those that are wise will get prepared.
Yesterday, an announcement by the Federal Reserve indicating that the Fed would keep interest rates near zero until mid-2013 helped the Dow surge more than 400 points, but all of those gains were wiped out today. It turns out that the Federal Reserve was only able to stabilize the financial markets for a single day. Fears about the European sovereign debt crisis and the crumbling U.S. economy continue to dominate the marketplace. With each passing day, things are looking more and more like 2008 all over again. So what is going to happen if "The Stock Market Crash of 2011" pushes the U.S. economy into "The Recession of 2012"?
Just like in 2008, bank stocks are being hit the hardest. That was true once again today. Bank of America (BAC) was down more than 10 percent, Citigroup was down more than 10 percent, Morgan Stanley was down more than 9 percent and JPMorgan Chase was down more than 5 percent.
Bank of America stock is down almost 50 percent so far this year. Overall, the S&P financial sector is down more than 23 percent in 2011 so far.
How soon will it be before we start hearing of the need for more bailouts? After all, the "too big to fail" banks are even bigger now than they were in 2008.
All of this panic is causing the price of gold to reach unprecedented heights. Today, gold was over $1,800 at one point. If the current panic continues for an extended period of time, there is no telling how high the price of gold may go.
In the United States, much of the focus has been on the fact that the U.S. government has lost its AAA credit rating, but the truth is that the European sovereign debt crisis is probably the biggest cause of the instability in world financial markets right now.
The European Central Bank has decided to start purchasing Italian and Spanish debt, and there have been rumors that French debt could be hit with a downgrade. Europe is a total financial basket case right now and unless dramatic action is taken things are going to get progressively worse.
Of course the U.S. is also certainly contributing greatly to this crisis. The federal government is on track to have a budget deficit that is over a trillion dollars for the third year in a row. The U.S national debt is a horrific nightmare, but our politicians keep putting off budget cuts.
The debt ceiling deal that was just reached basically does next to nothing to cut the budget before the next election. Unless the "Super Congress" does something dramatic, the only "budget cuts" we will see before the 2012 election will be 25 billion dollars in "savings" from spending increases that will be cancelled.
The modest spending cuts scheduled to go into effect beginning in 2013 will probably never materialize. Whenever the time comes to actually significantly cut the budget, our politicians always want to put it off for another time.
But in the end, debt is always going to have its day. Our politicians can try to kick the can down the road all they want, but eventually a day of reckoning is going to come.
In fact, if the U.S. and Europe had not piled up so much debt, we would not be facing all of the problems we are dealing with now.
Things could have been so much different.
But here we are.
The truth is that this debt crisis is just beginning. There is no magic potion that is going to make all of this debt suddenly disappear.
Most Americans have no idea how much financial pain is coming. We have been living way beyond our means for decades, and now we are going to start paying for it.
Now that long-term U.S. government debt has been downgraded, huge numbers of other securities are also going to be affected. In fact, according to a recent Bloomberg article, S&P has already been very busy slashing the ratings on hordes of municipal bonds.
Standard & Poor’s lowered the AAA ratings of thousands of municipal bonds tied to the federal government, including housing securities and debt backed by leases, following its Aug. 5 downgrade of the U.S.
That is the thing about financial markets - once the dominoes start to fall, the ripple effects can be felt for a long, long time.
So if this stock market crash gets even worse, will the Federal Reserve respond with even stronger measures?
They have already basically promised to keep interest rates near zero for the next two years. So what else can the Fed do?
Well, many now believe that there is a very good chance that we could see another round of quantitative easing.
Not that more quantitative easing is going to help much of anything. Rather than helping the economy, the last round of quantitative easing just pushed commodity prices through the roof. But the Fed is unlikely to just sit there and do nothing while financial markets struggle.
But it is not just the financial markets that are having a difficult time right now. Bad news is coming in from all over the economy. The possibility that we could soon slip into another major recession is growing by the day.
Unfortunately, our economy is so weak already that a new recession would probably hurt even more than the last recession did.
Mark Zandi, the chief economist at Moody's Analytics, says that if we have another recession it "won't feel like a new recession. It would likely feel like a depression."
But the American people are in no mood for more economic pain. Every recent poll shows that Americans are already fed up.
For example, a brand new Reuters/Ipsos poll found that 73 percent of the American people believe that the country is "on the wrong track."
So let's certainly hope that the current stock market crash does not set off another major global recession. We certainly do not need things to get significantly worse than they are right now.
But whether it hits now or later, the truth is that a whole lot of economic pain is on the way. The U.S. and Europe have been making really, really bad decisions for decades, and we are not going to be able to escape the consequences of those decisions.
The global financial system is one huge mountain of leverage, risk and debt. A collapse is inevitable.
When you build a house of cards on a foundation of sand, you should not be surprised when it comes crashing down. The next wave of the economic collapse is coming, and those that are wise will get prepared.
stock market prediction august 1 2011
Indonesia stock info - stock market prediction august 1 2011 ; The debt-ceiling negotiations are now like a heavy weight hanging over the stock market. The Dow Jones Industrial Average fell 195.87 points Wednesday, which was the fourth consecutive loss
As the Aug. 2 debt deadline approaches, investors can envision everything from the stock market dropping like a rock – perhaps as much as 20 percent – to the economy shrinking as government vendors lay off thousands of workers. In short, the worst that could happen.
However, none of that might happen. Perhaps politicians will suddenly find a solution, a way to cut the federal budget deficit and raise the debt ceiling at the same time. In short: a political compromise that helps portfolios. In that case, the stock market may recoup its losses, making this one of the better times to invest.
Here’s what some investors say are the best and worst things that could happen.
The best thing, says Mark Lamkin, CEO of Lamkin Wealth Management in Louisville, Ky., would be for Congress to agree on a $2 trillion, 10-year deal to reduce the budget deficit, combined with raising the debt ceiling.
“I don’t think we’re going to see a $4 trillion deal because the two sides are too far apart,” he says. Instead, the heavy lifting will fall to the next Congress, he says.
Why is this such a good deal? “It beats the heck out of a default,” says Mr. Lamkin.
Fred Dickson, chief investment strategist at D.A. Davidson & Co. in Lake Oswego, Ore., hopes the two parties reach an agreement just in time for the Sunday talk shows. “In that case, the markets would bounce up pretty sharply on Monday,” he says.
Mr. Dickson expects that if they can reduce the deficit by $1 trillion over 10 years, “it would be a reasonable starting point.”
The best-case scenario for Sam Stovall, chief investment strategist at Standard & Poor’s in New York, entails a far larger package – what he terms a “big-ticket agreement” that would reduce the budget deficit by $4 trillion over 10 years. In addition, Congress would agree to extend the debt limit so it does not need to be revisited next year “and used as a political football.”
Standard & Poor’s, commenting in the past on the possibility of a $4 trillion cut in the budget, has said a reduction that large would bring the US debt level within the range acceptable for a AAA-rated bond. Thus, the United States would keep its stellar rating.
On Wednesday at a congressional hearing, Deven Sharma, president of Standard & Poor’s, said the rating agency’s analysts don’t believe the US will default on its debt.
Of course, not all the outlooks are rosy. To Lamkin, the worst-case scenario is a very short-term arrangement that averts a default but does not appease the rating agencies. “The worst-case scenario is one where they make an 11-1/2-hour deal in which the basic things are paid for but they don’t solve anything,” he says.
Such a short-term agreement would probably lead to a ratings downgrade. Lamkin calls such a downgrade “a tax on every American.”
The government’s borrowing costs would go up, he estimates, between one-half and three-quarters of a percentage point. Since the US has about $14 trillion in debt, the extra interest costs would probably wipe out any budget savings passed by Congress, he says. In addition, the cost of borrowing to buy a house would rise. State and municipal governments could also see their borrowing costs rise.
In this worst-case scenario, the stock market could fall between 10 percent and 15 percent, Lamkin says. “You could see a drop of 1,200 points in consecutive days,” he warns. “It would really depend on how long the default went on.”
It’s possible, Mr. Stovall says, that the stock market would have a sharp sell-off in the event of a default. “Let’s face it, so many people don’t expect one, so it’s not built into the market’s pricing,” he says.
Mr. Dickson’s worst-case scenario is that the two sides cannot agree on even “an extra innings” extension of the debt ceiling, which would give them, say, an extra month to try to reach an agreement. If that were to happen, Dickson expects the stock market to fall about 5 percent and the yields on government bonds to rise about one-quarter of a percentage point.
Dickson hopes the two sides don’t postpone making hard decisions. “If they just try to avoid default without resolving the issues, then we have to go through this again six months or 12 months or 18 months from now,” he says.
As the Aug. 2 debt deadline approaches, investors can envision everything from the stock market dropping like a rock – perhaps as much as 20 percent – to the economy shrinking as government vendors lay off thousands of workers. In short, the worst that could happen.
However, none of that might happen. Perhaps politicians will suddenly find a solution, a way to cut the federal budget deficit and raise the debt ceiling at the same time. In short: a political compromise that helps portfolios. In that case, the stock market may recoup its losses, making this one of the better times to invest.
Here’s what some investors say are the best and worst things that could happen.
The best thing, says Mark Lamkin, CEO of Lamkin Wealth Management in Louisville, Ky., would be for Congress to agree on a $2 trillion, 10-year deal to reduce the budget deficit, combined with raising the debt ceiling.
“I don’t think we’re going to see a $4 trillion deal because the two sides are too far apart,” he says. Instead, the heavy lifting will fall to the next Congress, he says.
Why is this such a good deal? “It beats the heck out of a default,” says Mr. Lamkin.
Fred Dickson, chief investment strategist at D.A. Davidson & Co. in Lake Oswego, Ore., hopes the two parties reach an agreement just in time for the Sunday talk shows. “In that case, the markets would bounce up pretty sharply on Monday,” he says.
Mr. Dickson expects that if they can reduce the deficit by $1 trillion over 10 years, “it would be a reasonable starting point.”
The best-case scenario for Sam Stovall, chief investment strategist at Standard & Poor’s in New York, entails a far larger package – what he terms a “big-ticket agreement” that would reduce the budget deficit by $4 trillion over 10 years. In addition, Congress would agree to extend the debt limit so it does not need to be revisited next year “and used as a political football.”
Standard & Poor’s, commenting in the past on the possibility of a $4 trillion cut in the budget, has said a reduction that large would bring the US debt level within the range acceptable for a AAA-rated bond. Thus, the United States would keep its stellar rating.
On Wednesday at a congressional hearing, Deven Sharma, president of Standard & Poor’s, said the rating agency’s analysts don’t believe the US will default on its debt.
Of course, not all the outlooks are rosy. To Lamkin, the worst-case scenario is a very short-term arrangement that averts a default but does not appease the rating agencies. “The worst-case scenario is one where they make an 11-1/2-hour deal in which the basic things are paid for but they don’t solve anything,” he says.
Such a short-term agreement would probably lead to a ratings downgrade. Lamkin calls such a downgrade “a tax on every American.”
The government’s borrowing costs would go up, he estimates, between one-half and three-quarters of a percentage point. Since the US has about $14 trillion in debt, the extra interest costs would probably wipe out any budget savings passed by Congress, he says. In addition, the cost of borrowing to buy a house would rise. State and municipal governments could also see their borrowing costs rise.
In this worst-case scenario, the stock market could fall between 10 percent and 15 percent, Lamkin says. “You could see a drop of 1,200 points in consecutive days,” he warns. “It would really depend on how long the default went on.”
It’s possible, Mr. Stovall says, that the stock market would have a sharp sell-off in the event of a default. “Let’s face it, so many people don’t expect one, so it’s not built into the market’s pricing,” he says.
Mr. Dickson’s worst-case scenario is that the two sides cannot agree on even “an extra innings” extension of the debt ceiling, which would give them, say, an extra month to try to reach an agreement. If that were to happen, Dickson expects the stock market to fall about 5 percent and the yields on government bonds to rise about one-quarter of a percentage point.
Dickson hopes the two sides don’t postpone making hard decisions. “If they just try to avoid default without resolving the issues, then we have to go through this again six months or 12 months or 18 months from now,” he says.
Obama to Bypass Warren, Tap Cordray to Head Consumer Agency
Indonesia stock info - Obama to Bypass Warren, Tap Cordray to Head Consumer Agency : The Obama administration is expected to nominate former Ohio Attorney General Richard Cordray to lead the Consumer Financial Protection Bureau, according to a White House official, capping a months-long saga over who it would tap to run the new consumer agency.
The move is likely to inflame supporters of Elizabeth Warren, the popular Harvard professor who has been helping set up the bureau as a special advisor to President Barack Obama. Ms. Warren, a longtime critic of the financial-services industry, pushed for the CFPB's creation and is said to have wanted the job herself.
In the end, White House officials concluded nominating Ms. Warren could hurt the fledgling bureau, given her unpopularity with many lawmakers, and wasn't a battle worth waging, these people said.
Mr. Cordray, who currently heads the CFPB's enforcement division, may not be as polarizing a figure as Ms. Warren, but his confirmation won't be without a fight. Republican senators have already said they will block confirmation of anyone to the post unless the White House agrees to structural changes, including turning the CFPB into a five-member commission.
His leading role in filing lawsuits against mortgage lenders for their foreclosure practices is also likely to be grist for lawmakers, who have beaten up on Ms. Warren over her involvement in mortgage-settlement talks between federal and state authorities.
Mr. Cordray, who joined the CFPB last year, gained notice for his lawsuit last year against the GMAC Mortgage unit of Ally Financial Inc. He described the business practices used by companies now under a nationwide investigation as "a business model built on fraud."
The move is likely to inflame supporters of Elizabeth Warren, the popular Harvard professor who has been helping set up the bureau as a special advisor to President Barack Obama. Ms. Warren, a longtime critic of the financial-services industry, pushed for the CFPB's creation and is said to have wanted the job herself.
In the end, White House officials concluded nominating Ms. Warren could hurt the fledgling bureau, given her unpopularity with many lawmakers, and wasn't a battle worth waging, these people said.
Mr. Cordray, who currently heads the CFPB's enforcement division, may not be as polarizing a figure as Ms. Warren, but his confirmation won't be without a fight. Republican senators have already said they will block confirmation of anyone to the post unless the White House agrees to structural changes, including turning the CFPB into a five-member commission.
His leading role in filing lawsuits against mortgage lenders for their foreclosure practices is also likely to be grist for lawmakers, who have beaten up on Ms. Warren over her involvement in mortgage-settlement talks between federal and state authorities.
Mr. Cordray, who joined the CFPB last year, gained notice for his lawsuit last year against the GMAC Mortgage unit of Ally Financial Inc. He described the business practices used by companies now under a nationwide investigation as "a business model built on fraud."
Egyptian stocks continued their recovery Sunday july 3 2011
Indonesia stock info - Egyptian stocks continued their recovery Sunday july 3 2011 ; Egyptian stocks continued their recovery Sunday, edging up nearly one per cent as security concerns waned and investors took fresh equity positions at the start of the country's fiscal year.
The EGX30 benchmark finished up 0.85 per cent at 5,418.69 points in a day marked by low market turnover of just LE366.2 million. Active interest in lower-cap stock helped drive the broader EGX70 up 1.5 per cent.
"The market was completing what happened last Thursday when we saw a combination of prices reaching an incentive level after the clashes on Tuesday and Wednesday, and a strong signal about security with the go-ahead of the Ahly-Zamalek football match," said Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce.
He believes a trouble-free Friday encouraged foreigners to re-engage, although numbers were restrained due to the Sunday holiday.
"People see the government is able to keep security -- and security is essential for investors, whether in Egypt or elsewhere," said Fathy.
Top of the pecking order was Ismailia Misr Poultry, whose shares leapt 67.2 per cent following the division of the larger company into a industrial farming concern with the same name and a construction firm, Al Ismailia Al-Gadida for Development and Urbanization.
Only Ismailia's poultry stock was traded on Sunday, offered at a price calculated by financial advisers. It was valued much higher by the market, soaring from LE10.8 per share to LE17.08 by the close of trade.
Other firms saw more traditional gains -- from 177 listed companies on Sunday, 130 rose in value and 36 declined.
"Investors and state funds are starting to buy after they were pressured to sell last week to make profits before the end of Egypt's financial year," said Mohamed Seddiek, head of research at Prime Brokerage told Reuters. With July underway, some have reversed their behaviour.
Though they made up just 8.6 per cent of the market, foreigners were net-buyers of LE14.83 million in equities -- outpacing the net-sales of Egyptians who represented 89.8 per cent and offloaded LE14.34m.
Shares in Arab Cotton Ginning continued to reap the rewards of the firm's 127 per cent rise in net profits, adding a further 4.4 per cent to Thursday's 4.41 per cent upturn. Investment bank Pioneers Holding kept a similar pace, rising 5.62 per cent.
News that Egyptian appliance maker Olympic is within of month of inking a takeover agreement with Sweden's Electrolux spurred a wider rise of 1.55 per cent in the household products sector, says Fathy.
Classic market behaviour explained the day's top loser, AJWA for Food Industries. Investors scrambled for the stock last week, driving it up 9.98 per cent as the rest of the market faltered. But on Sunday, profit taking was all, as sustained sell-offs slashed its value by 6.98 per cent.
The EGX30 benchmark finished up 0.85 per cent at 5,418.69 points in a day marked by low market turnover of just LE366.2 million. Active interest in lower-cap stock helped drive the broader EGX70 up 1.5 per cent.
"The market was completing what happened last Thursday when we saw a combination of prices reaching an incentive level after the clashes on Tuesday and Wednesday, and a strong signal about security with the go-ahead of the Ahly-Zamalek football match," said Issa Fathy, vice president of the securities division at Cairo's Chamber of Commerce.
He believes a trouble-free Friday encouraged foreigners to re-engage, although numbers were restrained due to the Sunday holiday.
"People see the government is able to keep security -- and security is essential for investors, whether in Egypt or elsewhere," said Fathy.
Top of the pecking order was Ismailia Misr Poultry, whose shares leapt 67.2 per cent following the division of the larger company into a industrial farming concern with the same name and a construction firm, Al Ismailia Al-Gadida for Development and Urbanization.
Only Ismailia's poultry stock was traded on Sunday, offered at a price calculated by financial advisers. It was valued much higher by the market, soaring from LE10.8 per share to LE17.08 by the close of trade.
Other firms saw more traditional gains -- from 177 listed companies on Sunday, 130 rose in value and 36 declined.
"Investors and state funds are starting to buy after they were pressured to sell last week to make profits before the end of Egypt's financial year," said Mohamed Seddiek, head of research at Prime Brokerage told Reuters. With July underway, some have reversed their behaviour.
Though they made up just 8.6 per cent of the market, foreigners were net-buyers of LE14.83 million in equities -- outpacing the net-sales of Egyptians who represented 89.8 per cent and offloaded LE14.34m.
Shares in Arab Cotton Ginning continued to reap the rewards of the firm's 127 per cent rise in net profits, adding a further 4.4 per cent to Thursday's 4.41 per cent upturn. Investment bank Pioneers Holding kept a similar pace, rising 5.62 per cent.
News that Egyptian appliance maker Olympic is within of month of inking a takeover agreement with Sweden's Electrolux spurred a wider rise of 1.55 per cent in the household products sector, says Fathy.
Classic market behaviour explained the day's top loser, AJWA for Food Industries. Investors scrambled for the stock last week, driving it up 9.98 per cent as the rest of the market faltered. But on Sunday, profit taking was all, as sustained sell-offs slashed its value by 6.98 per cent.
Islamabad stock market outlook july 2011
Indonesia stock info - Islamabad stock market outlook july 2011 ; The Islamabad stock market witnessed selling pressure during the week, analysts said on Saturday. The Islamabad Stock Exchange (ISE) 10-share index decreased by 35.46 points to close at 2,718.17 points as against the previous week’s close of 2,753.63 points. The index remained negative for four days (June 27, 28, 29 and July 1) and positive only on July 1.
Total volume of transactions stood at 0.197 million shares as against 0.322 million shares last week, showing a total decrease of 0.125 million shares or 39 percent. The minimum transaction in the outgoing week was recorded on June 29 when the market reached 0.027 million shares and the index lost 6.57 points to close at 2,683.01 points from the previous level of 2,689.58 points.
The maximum transaction in the outgoing week was 0.065 million shares as compared to last week’s 0.182 million shares. The maximum decrease in the share price of a company was observed in Unilever Pakistan, the price of which fell Rs 154.64 on June 30 when the index increased by 39.82 points. The maximum increase in share price of a company was also observed in Unilever Pakistan, which rose Rs 168 on June 27 when the market declined 8.72 points. staff report
Total volume of transactions stood at 0.197 million shares as against 0.322 million shares last week, showing a total decrease of 0.125 million shares or 39 percent. The minimum transaction in the outgoing week was recorded on June 29 when the market reached 0.027 million shares and the index lost 6.57 points to close at 2,683.01 points from the previous level of 2,689.58 points.
The maximum transaction in the outgoing week was 0.065 million shares as compared to last week’s 0.182 million shares. The maximum decrease in the share price of a company was observed in Unilever Pakistan, the price of which fell Rs 154.64 on June 30 when the index increased by 39.82 points. The maximum increase in share price of a company was also observed in Unilever Pakistan, which rose Rs 168 on June 27 when the market declined 8.72 points. staff report
australian stock market prediction July 4 2011
Indonesia stock info - australian stock market prediction July 4 2011 ; The Australian share market retreated in quiet trading Friday after a two-day winning streak. Disappointing manufacturing data from China, combined with a downgrade of Australian bank earnings forecasts by UBS, triggered the pullback.
The benchmark S&P/ASX 200 closed down 16.8 points, or 0.4%, at 4591.2. It hit a four-week high of 4622.0 after Wall Street rose overnight, before falling to 4577.8 amid a lack of demand at the start of the Australian financial year.
The index remained above minor support at 4565.9, leaving the charts pointing to 4680.0, based on a double-bottom pattern, according to Dow Jones Newswires technical analysis.
"We still think the market will move into positive territory over the next few weeks given yesterday's strong close," said CityIndex chief market analyst Peter Esho.
On Wall Street, the S&P 500 rose 1.0% after the Greek parliament passed legislation implementing a crucial austerity plan, and ISM's Chicago business index beat expectations.
Also helping global sentiment, Germany's major banks agreed to join French institutions in rolling over a portion of Greek government debt.
The Australian market turned negative after China's manufacturing index missed expectations, although China's share market was slightly positive Friday afternoon.
Major banks fell 0.2%-1.0% after UBS cut its earnings per share forecasts to levels 6%-11% below consensus. UBS cut its recommendation on Commonwealth Bank stock to Neutral, while upgrading Westpac to Buy.
The broker said the banks' growth outlook remained subdued given deleveraging and the patchy Australian economy. It said banks must refocus on process re-engineering and cost savings.
Suncorp rose 0.3% to A$8.16 after reiterating its underlying insurance margin guidance of at least 12% growth. Australia's second biggest insurer of homes and cars said it will pay more for its reinsurance cover, after natural disasters this year, but its margin guidance indicated it may not be paying as much as some had feared.
Downer rose 1.6% to A$3.76 after hitting a five-day high of A$3.80 on news of the delivery of its first Waratah train to the New South Wales state government.
Apart from gains in BlueScope Steel, Seven West Media, Ten Network Holdings and Telstra, there was little evidence of investors buying stocks that have been beaten down by tax-loss selling before financial year-end.
Rare earths favorite Lynas Corp. dived 12% to A$1.75 after the Malaysian government imposed fresh conditions ahead of the start-up of its Lynas Advanced Materials Plant in Kuantan. Lynas said the conditions won't delay first production, but some analysts believe a hold-up is likely.
The benchmark S&P/ASX 200 closed down 16.8 points, or 0.4%, at 4591.2. It hit a four-week high of 4622.0 after Wall Street rose overnight, before falling to 4577.8 amid a lack of demand at the start of the Australian financial year.
The index remained above minor support at 4565.9, leaving the charts pointing to 4680.0, based on a double-bottom pattern, according to Dow Jones Newswires technical analysis.
"We still think the market will move into positive territory over the next few weeks given yesterday's strong close," said CityIndex chief market analyst Peter Esho.
On Wall Street, the S&P 500 rose 1.0% after the Greek parliament passed legislation implementing a crucial austerity plan, and ISM's Chicago business index beat expectations.
Also helping global sentiment, Germany's major banks agreed to join French institutions in rolling over a portion of Greek government debt.
The Australian market turned negative after China's manufacturing index missed expectations, although China's share market was slightly positive Friday afternoon.
Major banks fell 0.2%-1.0% after UBS cut its earnings per share forecasts to levels 6%-11% below consensus. UBS cut its recommendation on Commonwealth Bank stock to Neutral, while upgrading Westpac to Buy.
The broker said the banks' growth outlook remained subdued given deleveraging and the patchy Australian economy. It said banks must refocus on process re-engineering and cost savings.
Suncorp rose 0.3% to A$8.16 after reiterating its underlying insurance margin guidance of at least 12% growth. Australia's second biggest insurer of homes and cars said it will pay more for its reinsurance cover, after natural disasters this year, but its margin guidance indicated it may not be paying as much as some had feared.
Downer rose 1.6% to A$3.76 after hitting a five-day high of A$3.80 on news of the delivery of its first Waratah train to the New South Wales state government.
Apart from gains in BlueScope Steel, Seven West Media, Ten Network Holdings and Telstra, there was little evidence of investors buying stocks that have been beaten down by tax-loss selling before financial year-end.
Rare earths favorite Lynas Corp. dived 12% to A$1.75 after the Malaysian government imposed fresh conditions ahead of the start-up of its Lynas Advanced Materials Plant in Kuantan. Lynas said the conditions won't delay first production, but some analysts believe a hold-up is likely.
Stocks market prediction and analys july 2011
Indonesia stock info - Stocks market prediction and analysis july 2011 : Stocks posted the biggest weekly jump in 2-weeks on the back of better than expected economic data and after the Greek parliament removed uncertainty around systemic risk and economic shock from a possible Greek default, after it voted to implement an austerity measures plan that opened the door to receive additional emergency financial aid. Financials were also in focus as Bank of America settled a lawsuit from investors on mortgage back securities and as the Fed issued interchange fees that were less onerous than previously expected.
For the week, the blue chip index rallied 5.43%; the S&P 500 Index jumped 5.61% and the NASDAQ surged 6.15%.
At the start of week, stocks gained, with the Dow and the S&P 500 snapping a 3-session losing streak and the Dow closing above 12,000, ahead of the austerity measures vote in Greece and after banking regulators issued capital rules for the biggest financial institutions that were less onerous as expected. Participants shrugged-off the data that showed stagnation in consumer spending.
In Asia, equity markets struggled, ending mixed for the session. Participants continued to worry about the European debt crisis and its impacts on the financial system. Japanese stocks fell ahead of the U.S. consumer spending data, worrying that consumers have reduced their spending as a weak labor and housing market continue to weigh. China moved higher, buoyed by transports as oil prices fell, limiting losses in Hong Kong.
In Europe, equity markets moved higher after a choppy session, helped by signs of progress on how to get private bondholders share the burden of a solution to Greece's debt problem.
Among the S&P 500 sectors, technology, consumer discretionary, and financials were the best performing, while materials dragged.
The financial sector saw strength after global regulators said banks deemed too big to fail must hold as much as 2.5 percentage points in additional capital as part of efforts to prevent another financial crisis, with about 30 big financial institutions likely to be impacted with the new capital fee. Bank of America (NYSE:BAC), the largest U.S. lender, jumped 2.47% to $10.78 after the capital requirements were lower than previously feared and as Dick Bove from Rochdale Securities said in a research note that the stock is massively undervalued. Bank of America posted the second biggest percentage gain in the Dow Jones Industrial Average.
JPMorgan (NYSE:JPM), the second largest U.S. lender, also moved to the upside on the news. Its shares climbed 1.06% to $39.91, posting one of the top percentage gains in the blue chip index.
Meanwhile, Goldman Sachs (NYSE:GS), the investment-banking firm, was falling 0.66% to $130.05 after Bank of America Merrill slashed its price target to $153 from $174 after revising its estimates.
Technology outperformed thanks to big cap tech. Microsoft (NASDAQ:MSFT), the largest software publisher, rallied more than 3.7% to $25.20, posting the biggest percentage gain in the blue chip index, and breaking above its 50day exponential moving average at $24.80. The stock rose ahead of an anticipated release of a version of the software giant's Office that is accessible via the Internet.
Apple (NASDAQ:AAPL), the maker of iPads and iPhones, gained 1.74% to$332.04 after Morgan Stanley said that as supply constraints ease, the company should be able to aggressively ramp up production of both iPhones and iPads in the second half of the year. Apple closed its third fiscal quarter last Saturday and earnings buzz will start building up in anticipation to the release of its results in July.
Cisco (NASDAQ:CSCO), the world’s largest networking equipment maker, gained 0.8% to $15.05 despite it was downgraded to Neutral from Outperform by Cowen. Cisco is so far the worst performer on the Dow this year.
Also during the session, the Supreme Court ruled that the government couldn’t ban the sale of violet video game to minors, as the action could violate free-speech rights. Take-Two Interactive (NASDAQ:TTWO), the publisher and developer of video games like Grand Theft Auto, jumped 2.3% to $15.14 on the news.
Consumer discretionary stocks were seeing strength despite the stagnation on consumer spending on the back of lower crude oil prices, which should be bullish for the consumer going forward. In the sector, Walt Disney (NYSE:DIS), the world’s largest Media Company, jumped 1.3% to $38.07 despite Nomura trimming its price target on the stock to $45 from $47, as its Pixar unit sequel Cars 2 sped to a $68 million opening weekend, which is ahead of its original estimates of $60 million. Pixar’s Cars 2 adds new characters to the blockbuster franchise, which has sold an estimated $10 billion worth of merchandise since the original Cars debuted in 2006.
Amazon.com (NASDAQ:AMZN), the largest online retailer, surged 4.52% to $201.25, after Morgan Stanley raised its price target on the retailer to $245 from $225 per share and adding the stock to its Best Ideas List. The firm believes that fourth quarter revenue will beat Wall Street expectations and there is a good likelihood that margins could expand. Amazon was posting one of the biggest gains in the NASDAQ-100 index.
Also in the space, Target (NYSE:TGT), the Minnesota based general merchandise discount store chain, climbed 0.28% to $46.46, closing above calculated support at $46.15, after it was downgraded to a Neutral from Buy at Janney Capital Markets.
On Tuesday, the market started in positive territory as the euro recovered to the flat line as reports suggesting Germany agreed with the French proposal for private sector involvement in the solution for the Greece debt crisis offset news reports of protests turning violent in Greece ahead of the crucial vote. Market sentiment also received a jolt after the U.S. Case-Shiller home price index showed a 4.0% year over year decline in home prices, but it registered the first monthly uptick in prices in eight months.
In Europe, stocks closed higher as optimism increased that Greece's parliament will vote to approve the tough austerity measures needed in exchange for financial aid from international lenders, which helped offset concern over economic growth and its impact at the bottom line of companies, like Siemens, which warned of a slowdown in growth in the back half of the year.
All of the S&P 500 key sectors finished in positive territory, with energy, consumer discretionary, and materials posting the biggest gains. Consumer staples, financials, and utilities underperformed. Energy stocks were the biggest driver in the session, with their 2.9% gain. The advance came on the back of a rally in crude oil prices, which had their largest single day move in over a month, with crude oil jumping 2.5% to close at $92.89 per barrel. Also helping the sector, natural gas rallied 2.1% to end at $4.35 per MMBtu. Weakness in the Dollar along with speculation fuel demand will increase ahead of the July 4th Holiday and forecast for hot weather helped lift prices in the complex.
Exxon Mobil (NYSE:XOM), the U.S. largest energy producer, jumped more than 2% to $79.63, posted one of the biggest percentage gains in the Dow Jones Industrial Average on the back of the rally in both oil and natural gas. Exxon has calculated support at $76.72 and resistance at $88.13.
Driller and oil services companies saw big moves, with Halliburton (NYSE:HAL), the provider of oilfield technologies and services to upstream oil and gas customers, was also one of the biggest performers in the sector, as shares rallied 5.32% to $48.69, closing above its calculated resistance at $47.76 after trading as high as $49.07.
Airline stocks suffered on speculation the move in crude will translate into higher jet fuel prices, with Delta Airlines (NYSE:DAL), the world’s second largest airline, among the biggest decliners in the industry. Delta fell 2.8% to $9.39 despite being upgraded to a Hold at Capstone. The higher oil prices and warnings from United Continental and AMR from last week continued to weigh in the space. Delta closed 1.49% above its calculated support at $9.25.
In the consumer discretionary sector, stocks were showing strong as consumer confidence dropped to its lowest level since November 2010, but its expected to climb in the future as lower gasoline prices and signs of a stabilizing housing market will likely provide support for the U.S. consumer. McDonald’s (NYSE:MCD), the world’s largest restaurant chain, jumped 2.47% to $84.35, helping the sector and posting a new 52-week high at $84.41. Argus raised its price target to $92 from $88 as the company continues to benefit from sales momentum in Asia-Pacific, Middle East and Africa, as well as from increased sales of breakfast items, the McCafe, and the Angus Wrap in the U.S.
Nike (NYSE:NKE), the athletic footwear and apparel giant, surged 10.14% to $89.90, closing above calculated resistance at $84.83 and at the top of the S&P 500 following an upside earnings surprise and as fiscal fourth quarter future orders jumped 15% year over year.
Wynn Resorts (NASDAQ:WYNN), the luxury casino operator, was a top performer in the sector, as shares rallied 3.82% to $139.43, closing above its calculated resistance at $136.81 and posting one of the biggest gains in the NASDAQ 100 index. Participants bid the sector on hopes of a comeback from the consumer and ahead of the 4th of July Holiday.
Industrials also received a bid, outperforming the broad market, as economic sensitive stocks were sought after. Caterpillar (NYSE:CAT), the world’s largest earthmoving equipment maker, rallied 3.08% to $103.84, posting the biggest percentage gain in the index.
In Tech land, Apple (NASDAQ:AAPL) climbed 0.97% to $335.26 after Needham raised its estimates above consensus in order to reflect higher than forecast iPad and Mac shipments. Apple’s fiscal quarter ended last quarter, increasing the buzz level surrounding Apple’s earnings report scheduled for July. On average analysts expect a profit of $5.63 on revenue of $24.52 billion. Last quarter, the company posted a 19.2% upside earnings surprise, as it earned $6.40 per share.
First Solar (NASDAQ:FSLR), the largest maker of thin film solar modules in the world, surged 6.80%, posting one of the biggest percentage gain in the NASDAQ-100 and closing just below its calculated resistance at $126. A bullish research note from Jefferies helped the stock during the session. The firm said that the company has taken on a robust project opportunity that will insulate it from further price declines in the spae.
Sina Corp. (NASDAQ:SINA), the Chinese online media company and owner of the Weibo microblogging service commonly referred to as the Twitter of China, rallied 6.05% to $100.54, extending the prior session rally, sparked by an upgrade to a Neutral rating at Goldman Sachs. The company entered a partnership with a Japanese company to market its Weibo service in Japan. Sina also started testing an online photo album service with editing functions. Last Week Jefferies reiterated its Buy rating, but trimmed its target price to $121.
Mid week, stocks advanced for the third straight session, led by financials after Greece passed its austerity measure plan, the Fed unveiled its debit card sweep fees, and after an encouraging pending home sales report.
In Asia, stocks ended mostly higher on the back of the strong performance in the U.S. market, hopes that the Greek parliament will pass the austerity measure plan to help the euro zone avoid default, and better than expected industrial output in Japan, jumping 5.7% in May, the biggest expansion monthly in 60 years, which helped the Nikkei to close at a 7-week high.
Among the S&P 500 sectors, financials, energy, and materials led the advance. Financials were the best sector as the Greek vote eased concern of systemic risk entering in the banking system, as the Fed proposed less onerous debit cards interchange fees than previously fear, and with Bank of America (NYSE:BAC) jumping 2.96% to $11.14 after trading as high as $11.25 and trading above calculated resistance at $10.94. The Charlotte, NC based bank reached a final settlement with mortgage back securities investors in which it will pay $8.5 billon, putting to rest charges that the bank failed to service mortgage loans properly leading to losses for investors who bought at least $47 billion worth of mortgage backed securities. Earlier in the year, Bank of America had estimated losses from mortgage put-backs at $7 to $10 billion. Shares were losing some steam towards the end of the session, but received a jolt after the Fed announced that debit card swipe fees would be capped at 22 cents, higher than initially proposed.
Rival Citigroup (NYSE:C), the third largest lender in the U.S., also benefited in the sector. Shares jumped 3.36% to $41.50, closing above calculated resistance at $41.17, after Bank of America Merrill upgraded the stock to a Buy.
Also in the sector, NASDAQ OMX Group (NASDAQ:NDAQ), the global operator of stock markets and owner of the NASDAQ market site, rallied 4.71% to $25.14 on news that the Toronto and London Stock Exchanges abandoned plans for a $3.7 billion merger, leaving both in play in a world already facing a wave of exchange consolidation, which could lead to a potential tie-up with the NASDAQ.
Both operators of global payment networks, Visa (NYSE:V) and MasterCard (NYSE:MA) surged on news that less onerous cap for debit card swipe fees that its was previously expected. In addition to the 21 cents fee, banks would be allowed to charge 5 basis points per transaction to cover fraud losses. Visa soared to the top of the S&P 500, rallying 15% to $86.57 and posting a new 52-week high at $87.32; while MasterCard surged more than 11% to $309.70, posting a new 52-week high.
The euro gained against the Dollar with as the Greek austerity plan moved forward, this bode well for commodities, like gold, silver and crude oil. Gold rallied for 0.7% to close at $1510.60 per ounce, while July silver surged 3.5% to end at $34.80 per ounce.
iShares Silver Trust ETF (NYSE:SLV), the fund that corresponds to the price of silver owned by the Trust less expenses and liabilities, jumped 3.33% to $34.01, as silver prices traded near $35 an ounce, with the metal attracting a bid on Dollar weakness following the Greek vote on its austerity plan. The trust extended its year to date gain 12.69%, with shares trimming its June decline to 9.55%. The Silver Trust has calculated support at $32.53 and resistance at $35.85.
The material sector also received a major lift from steelmakers and from better than expected earnings from Monsanto.
AK Steel (NYSE:AKS), the Ohio based steel company, and U.S. Steel (NYSE:X), the integrated steel producer with operations in North America and Europe, were upgraded to a Buy from Hold at Deutsche Bank. Both stocks rallied more than 5%, with U.S. Steel closing above calculated resistance at $43.47 and AK Steel closing above calculated resistance at $14.87.
Monsanto (NYSE:MON), the agricultural business company, surged 5.02% to $70.26 after an upside earnings surprise, thanks to robust sales of its seeds and genetic traits business. Monsanto earned for the quarter $1.26 per share, $0.15 better than consensus, on revenues that jumped 21% to $3.59 billion. The company also guided fiscal 2011 earnings per share above consensus. Argus reiterated its Buy rating on the stock, following the strong quarterly results.
Crude oil benefited from the weakness in the Dollar, coupled with a sense that the global economy is in better shape than estimated and after a bullish inventory report for last week in the U.S. Oil rallied 2% to $94.77, while Brent pushed also higher expanding the gap from WTI, to levels before the IEA announcement of the release of the 60 million reserves.
Chevron (NYSE:CVX), the second largest U.S. energy producer, climbed 0.93% to $101.28, as crude oil rallied above $94 per barrel, closing practically at the level before the IEA announcement of release of reserves last week. Chevron has calculated support at $9 and resistance at $105.21.
Technology slightly underperformed the broad market index, receiving a jolt toward the end of the session from MasterCard and Visa. But Apple (NASDAQ:AAPL) dragged, with shares falling 0.36% to $334.04 as the iPhone speculation continued. RBC Capital noted in a research note that Apple is expected to cut the iPhone 3GS price to $0 on a 2-year contract in conjunction with the iPhone 5 launch, which the firm continues to expect for September. According to the firm, this approach is intended to target mid-market smartphone buyers and counter Android's mid-market expansion.
On Thursday, the market started on a positive note amid overseas gains o optimism surrounding the Greece debt situation and the state of the global economy as weekly jobless claims came more or less in line with expectations, with participants dismissing the continued weakness in the labor market.
In Asia, the Nikkei under performed, ending slightly higher after pulling back at 7-week highs, as Manufacturing PMI slowed down slightly from the prior month. Shanghai rebounded from the prior session loss on news report that suggested first half GDP growth would reach 9.5% and CPI of 5.3%.
In Europe, equity markets moved to their highest level in almost 4-weeks after the Greek parliament voted on a final passage of the austerity measures plan that will help the debt-stricken country secure additional emergency financial aid to meet their short-term debt obligations.
The market also received a boost from a surprise in the Chicago Fed manufacturing reading. The Purchase Manager's Index registered a 61.1 reading, up from May's 56.6 and ahead of expectations for a 53.
All of the S&P 500 sectors finished in positive territory, with industrials, energy, and technology posting the biggest gains, while utilities, healthcare, and financials under performed. The industrial sector climbed 1.58% as a group, with Caterpillar (NYSE:CAT) rallying 3% to $106.46, posting the second biggest percentage gain in the Dow Jones Industrial Average. Caterpillar moved higher on Dollar weakness and after surprise PMI reading. During the first quarter, Caterpillar was one of the top Dow components; in this quarter the stock didn’t fare as well, losing 4.36%.
While the energy sector climbed close to 1.5%, as natural gas finished higher by 1.4% following bullish inventory data and after crude oil edged higher to close at $95.42 per barrel. Big oil was active on the back of the higher prices in the energy complex. BP (NYSE:BP), the London, UK based energy giant, jumped 1.9% to $44.29, closing above calculated resistance at $43.50 and turning positive for the year, climbing 0.27%.
Chevron (NYSE:CVX) gained 1.54% to $102.84, as it also outperformed. The stock ha calculated support at $97 and resistance at $105.21. Chevron closed the quarter with a 4.33% loss.
Tesoro (NYSE:TSO), the crude oil refiner based in San Antonio, TX, was a top performer in the sector, as shares surged 3.57% to $22.91 buoyed by higher gasoline prices. Tesoro was initiated earlier in the week with a Neutral and a target price of $23 at UBS.
Financials underperformed on the session, climbing 0.39% as a group, with big banks struggling in the day. Bank of America (NYSE:BAC) gave back a portion of its prior session rally, with shares falling 1.62% to $10.96. The stock was able to held its calculated resistance level at $10.91. The stock finished the first half of the year with 17.8% loss.
Morgan Stanley (NYSE:MS), the operator of a global securities business, fell 1.6% to $23.01 after Mitsubishi UFJ completed its conversion of Morgan Stanley shares, causing the bank to take a $1.7 billion charge for the second quarter. For the quarter, Morgan Stanley tumbled 15.78%.
The tech sector was active, with participants bidding the sector higher. First Solar (NASDAQ:FSLR) jumped 2.2% to $132.27 after the Energy Department offered $4.5 billion in loan guarantees to back three projects by the Tempe, Ariz.-based company. First Solar was also initiated with a Positive at a target price of $160 at Avian.
Apple (NASDAQ:AAPL) was able to climb 0.49% to $335.67, despite reports that Samsung Electronics filed a complaint with the U.S. International Trade Commission (ITC) over Apple’s violation of five patents held by Samsung related to wireless communications standards and mobile device user interface. On its compliant, Samsung is seeking for the commission to ban iPhone imports into the U.S., in which is the latest fight in a long series of suits between both companies. Apple was able to trim its quarterly loss to 3.68%
In the materials sector, precious metals had somewhat muted session following the austerity vote in Greece. Gold fell 0.5% to $1502.90, while silver closed nearly unchanged at $34.76.
Monsanto (NYSE:MON) was a top performer in the materials sector, with shares extending the prior session rally by 3.25% to $72.54. Ticonderoga raised its target price to $82 from $80, as the firm noted the seed industry will have pricing flexibility, mostly a richer product mix of brand new products this autumn for the upcoming 2012- 2013 crop year given the tailwind of sharply higher crop prices.
At the end of the week, stocks closed sharply higher ahead of the long holiday weekend to finish their best week in almost 2-years after Wall Street cheered a better than expected manufacturing report, which helped eased concern about the state of the U.S. economic recovery.
In Asia, stocks closed with modest gains. Shanghai closed in positive territory after China’s manufacturing PMI data hit a 28-month low, which tempered gains, while the Nikkei added 0.5%, despite the Tankan Survey data that was weaker than expected.
In Europe, shares closed higher for a fifth day, led by banks, which continued their rally after the Greek parliament passed the country’s austerity measures plan that eased concern that systemic risk will enter the banking system from a potential Greek default.
Stocks moved from near the neutral line to significant gains after the Institute for Supply Management said its index of national factory activity rose to 55.3 from 53.5 the month before. The reading was better than expected.
Participants shrugged off news that the U.S. consumer sentiment worsened in June as consumers worried amid economic uncertainty despite falling gasoline prices. The final reading for the consumer sentiment index came in at 71.5, down from 74.3 the month before and slightly below the preliminary June figure of 71.8.
All of the S&P 500 key sectors finished with gains, with consumer discretionary, financials and industrials leading the advance, while consumer staples, materials, energy, and healthcare underperforming the broad market index.
The consumer discretionary sector was the top performer, jumping more than 2%, with Apollo Group (NASDAQ:APOL), the provider of educational programs, was surging more than 6% to $46.46 following an upside earnings surprise and after the company issued inline guidance. FBR Capital raised its target price to $47 from $45 following the Apollo’s earnings beating consensus by $0.12 per share.
Wynn Resorts (NASDAQ:WYNN) rallied more than 4% to $149.57, after the Macau Gaming Inspection and Coordination Bureau reported June gross revenues that jumped 52% year over year to 20.79 billion patacas or about $2.59 billion, following a prior surge of 65% in May. Macau’s gaming revenue surged 44% in the second quarter and is now posting an increase of 45% year to date, according to the Bureau. Wynn generated about 69% of its first quarter revenue and approximately 67% of its first quarter adjusted EBITDA from Macau. The casino space was also benefiting from increased economic optimism.
Las Vegas Sands (NYSE:LVS), the owner and operator of casino resorts and convention centers in the U.S., Macau, and Singapore, jumped 3.98% to $43.89, closing above its 200day moving average at $43.48, also benefiting from the Macau gaming numbers. Las Vegas Sands generated about 55% of its first quarter revenue and approximately 51% of its first quarter adjusted EBITDA from Macau.
Financials gained 1.8%, as the sector received a lift from the performance in shares of NASDAQ OMX (NASDAQ:NDAQ), JPMorgan (NYSE:JPM) and Citigroup (NYSE:C). NASDAQ OMX surged 3.24% to $26.12, trading above calculated resistance at $25.70, on continued M&A speculation in the space.
JPMorgan (NYSE:JPM) jumped 2.19% to $41.58, posting the second biggest percentage gain in the Dow Jones Industrial Average, while trimming its year to date decline to 1.98%.
Citigroup (NYSE:C) rallied 2.98% to $42.88, after trading as high as $43.06, on the back of strength in the financial sector. Citi was seeing a strong bid at the start of the second half of the year, trimming its year to date decline to 9.34%.
The industrial sector received the boost from the better than expected manufacturing report. Caterpillar (NYSE:CAT) jumped more than 2% to $108.62, posting one of the biggest percentage gains in the blue chip index.
In tech land, Apple (NASDAQ:AAPL) rallied 2.26% to $343.26, as the company was part of a consortium, which includes LM Ericsson, EMC Corp, Sony, Research In Motion, and Microsoft, and will be acquiring Nortel Networks’ patent portfolio for $4.5 billion. The extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking. Apple fared well after the International Trade Commission delayed its final ruling on Eastman Kodak’s complaint that Apple’ iPhone and Research In Motion violated its patent related to the method used to preview images, while upholding portions of a ruling unfavorable to the maker of digital cameras, film and printers.
On the flip side, shares of Eastman Kodak (NYSE:EK) plunged more than 14% to $3.07 on the unfavorable news for the company, regarding its patent complaint against Apple and RIM, which could have represented about $1 billion in licensee fees.
In the material sector, Alcoa (NYSE:AA), the aluminum producer, was a top performer in the sector, with shares jumping 2.84% to $16.31, posting the biggest percentage gain in the blue chip index, on the back of the improved numbers in manufacturing and as automakers reported their June sales.
But precious metals performed poorly, with the safe haven trade unwinding following eased concerns over a Greek default and economic uncertainty. Gold prices dropped 1.3% to $1483.80 per ounce while silver sank 3.2% to $33.72 per ounce.
iShares Silver Trust ETF (NYSE:SLV), the fund that corresponds to the price of silver owned by the Trust less expenses and liabilities, fell 2.48% to $33, as silver prices closed below the $34 an ounce level. The trust closed the first half of the year with a gain 12.13%, with shares falling 10% in June, which followed a 19.8% plunge in May. The Silver Trust has calculated support at $32.53 and resistance at $35.85.
Energy finished in positive territory despite lower prices in the energy complex. Crude oil prices pared losses seen in early pit trade to log a 0.7% loss at $94.79 per barrel, but the energy component finished the week 4% higher. Natural gas prices fell 1.4% to $4.34 per MMBtu. The commodity was under pressure all session, but it was able to advance almost 3% for the week.
Marathon Oil (NYSE:MRO), the integrated oil company based in Houston, TX, surged 3.03% to $32.95 after the company has just completed its spinoff of its downstream business, creating a new company called Marathon Petroleum (NYSE:MPC). Marathon Oil will maintain its ticker and will now be a company solely focusing in exploration and production of crude oil and natural gas. Oppenheimer set its target price on the new Marathon Oil (NYSE:MRO) at $40, noting that the stock is now one of the most undervalued large E&P companies with its shares trading at lower multiples of earnings, cash flow, and EBITDA than most of its peers.
Marathon Petroleum (NYSE:MPC), the second largest independent refining company in the U.S., gained 1.93% to $42.20 on its debut in the NYSE. Marathon Petroleum was initiated with an Outperform and a target price of $50 at Oppenheimer and with a Buy at Deutsche Bank. The stock also received an Outperform rating at Oppenheimer. Marathon Petroleum replaced Radio Shack on the S&P 500 Index.
For the week, the blue chip index rallied 5.43%; the S&P 500 Index jumped 5.61% and the NASDAQ surged 6.15%.
At the start of week, stocks gained, with the Dow and the S&P 500 snapping a 3-session losing streak and the Dow closing above 12,000, ahead of the austerity measures vote in Greece and after banking regulators issued capital rules for the biggest financial institutions that were less onerous as expected. Participants shrugged-off the data that showed stagnation in consumer spending.
In Asia, equity markets struggled, ending mixed for the session. Participants continued to worry about the European debt crisis and its impacts on the financial system. Japanese stocks fell ahead of the U.S. consumer spending data, worrying that consumers have reduced their spending as a weak labor and housing market continue to weigh. China moved higher, buoyed by transports as oil prices fell, limiting losses in Hong Kong.
In Europe, equity markets moved higher after a choppy session, helped by signs of progress on how to get private bondholders share the burden of a solution to Greece's debt problem.
Among the S&P 500 sectors, technology, consumer discretionary, and financials were the best performing, while materials dragged.
The financial sector saw strength after global regulators said banks deemed too big to fail must hold as much as 2.5 percentage points in additional capital as part of efforts to prevent another financial crisis, with about 30 big financial institutions likely to be impacted with the new capital fee. Bank of America (NYSE:BAC), the largest U.S. lender, jumped 2.47% to $10.78 after the capital requirements were lower than previously feared and as Dick Bove from Rochdale Securities said in a research note that the stock is massively undervalued. Bank of America posted the second biggest percentage gain in the Dow Jones Industrial Average.
JPMorgan (NYSE:JPM), the second largest U.S. lender, also moved to the upside on the news. Its shares climbed 1.06% to $39.91, posting one of the top percentage gains in the blue chip index.
Meanwhile, Goldman Sachs (NYSE:GS), the investment-banking firm, was falling 0.66% to $130.05 after Bank of America Merrill slashed its price target to $153 from $174 after revising its estimates.
Technology outperformed thanks to big cap tech. Microsoft (NASDAQ:MSFT), the largest software publisher, rallied more than 3.7% to $25.20, posting the biggest percentage gain in the blue chip index, and breaking above its 50day exponential moving average at $24.80. The stock rose ahead of an anticipated release of a version of the software giant's Office that is accessible via the Internet.
Apple (NASDAQ:AAPL), the maker of iPads and iPhones, gained 1.74% to$332.04 after Morgan Stanley said that as supply constraints ease, the company should be able to aggressively ramp up production of both iPhones and iPads in the second half of the year. Apple closed its third fiscal quarter last Saturday and earnings buzz will start building up in anticipation to the release of its results in July.
Cisco (NASDAQ:CSCO), the world’s largest networking equipment maker, gained 0.8% to $15.05 despite it was downgraded to Neutral from Outperform by Cowen. Cisco is so far the worst performer on the Dow this year.
Also during the session, the Supreme Court ruled that the government couldn’t ban the sale of violet video game to minors, as the action could violate free-speech rights. Take-Two Interactive (NASDAQ:TTWO), the publisher and developer of video games like Grand Theft Auto, jumped 2.3% to $15.14 on the news.
Consumer discretionary stocks were seeing strength despite the stagnation on consumer spending on the back of lower crude oil prices, which should be bullish for the consumer going forward. In the sector, Walt Disney (NYSE:DIS), the world’s largest Media Company, jumped 1.3% to $38.07 despite Nomura trimming its price target on the stock to $45 from $47, as its Pixar unit sequel Cars 2 sped to a $68 million opening weekend, which is ahead of its original estimates of $60 million. Pixar’s Cars 2 adds new characters to the blockbuster franchise, which has sold an estimated $10 billion worth of merchandise since the original Cars debuted in 2006.
Amazon.com (NASDAQ:AMZN), the largest online retailer, surged 4.52% to $201.25, after Morgan Stanley raised its price target on the retailer to $245 from $225 per share and adding the stock to its Best Ideas List. The firm believes that fourth quarter revenue will beat Wall Street expectations and there is a good likelihood that margins could expand. Amazon was posting one of the biggest gains in the NASDAQ-100 index.
Also in the space, Target (NYSE:TGT), the Minnesota based general merchandise discount store chain, climbed 0.28% to $46.46, closing above calculated support at $46.15, after it was downgraded to a Neutral from Buy at Janney Capital Markets.
On Tuesday, the market started in positive territory as the euro recovered to the flat line as reports suggesting Germany agreed with the French proposal for private sector involvement in the solution for the Greece debt crisis offset news reports of protests turning violent in Greece ahead of the crucial vote. Market sentiment also received a jolt after the U.S. Case-Shiller home price index showed a 4.0% year over year decline in home prices, but it registered the first monthly uptick in prices in eight months.
In Europe, stocks closed higher as optimism increased that Greece's parliament will vote to approve the tough austerity measures needed in exchange for financial aid from international lenders, which helped offset concern over economic growth and its impact at the bottom line of companies, like Siemens, which warned of a slowdown in growth in the back half of the year.
All of the S&P 500 key sectors finished in positive territory, with energy, consumer discretionary, and materials posting the biggest gains. Consumer staples, financials, and utilities underperformed. Energy stocks were the biggest driver in the session, with their 2.9% gain. The advance came on the back of a rally in crude oil prices, which had their largest single day move in over a month, with crude oil jumping 2.5% to close at $92.89 per barrel. Also helping the sector, natural gas rallied 2.1% to end at $4.35 per MMBtu. Weakness in the Dollar along with speculation fuel demand will increase ahead of the July 4th Holiday and forecast for hot weather helped lift prices in the complex.
Exxon Mobil (NYSE:XOM), the U.S. largest energy producer, jumped more than 2% to $79.63, posted one of the biggest percentage gains in the Dow Jones Industrial Average on the back of the rally in both oil and natural gas. Exxon has calculated support at $76.72 and resistance at $88.13.
Driller and oil services companies saw big moves, with Halliburton (NYSE:HAL), the provider of oilfield technologies and services to upstream oil and gas customers, was also one of the biggest performers in the sector, as shares rallied 5.32% to $48.69, closing above its calculated resistance at $47.76 after trading as high as $49.07.
Airline stocks suffered on speculation the move in crude will translate into higher jet fuel prices, with Delta Airlines (NYSE:DAL), the world’s second largest airline, among the biggest decliners in the industry. Delta fell 2.8% to $9.39 despite being upgraded to a Hold at Capstone. The higher oil prices and warnings from United Continental and AMR from last week continued to weigh in the space. Delta closed 1.49% above its calculated support at $9.25.
In the consumer discretionary sector, stocks were showing strong as consumer confidence dropped to its lowest level since November 2010, but its expected to climb in the future as lower gasoline prices and signs of a stabilizing housing market will likely provide support for the U.S. consumer. McDonald’s (NYSE:MCD), the world’s largest restaurant chain, jumped 2.47% to $84.35, helping the sector and posting a new 52-week high at $84.41. Argus raised its price target to $92 from $88 as the company continues to benefit from sales momentum in Asia-Pacific, Middle East and Africa, as well as from increased sales of breakfast items, the McCafe, and the Angus Wrap in the U.S.
Nike (NYSE:NKE), the athletic footwear and apparel giant, surged 10.14% to $89.90, closing above calculated resistance at $84.83 and at the top of the S&P 500 following an upside earnings surprise and as fiscal fourth quarter future orders jumped 15% year over year.
Wynn Resorts (NASDAQ:WYNN), the luxury casino operator, was a top performer in the sector, as shares rallied 3.82% to $139.43, closing above its calculated resistance at $136.81 and posting one of the biggest gains in the NASDAQ 100 index. Participants bid the sector on hopes of a comeback from the consumer and ahead of the 4th of July Holiday.
Industrials also received a bid, outperforming the broad market, as economic sensitive stocks were sought after. Caterpillar (NYSE:CAT), the world’s largest earthmoving equipment maker, rallied 3.08% to $103.84, posting the biggest percentage gain in the index.
In Tech land, Apple (NASDAQ:AAPL) climbed 0.97% to $335.26 after Needham raised its estimates above consensus in order to reflect higher than forecast iPad and Mac shipments. Apple’s fiscal quarter ended last quarter, increasing the buzz level surrounding Apple’s earnings report scheduled for July. On average analysts expect a profit of $5.63 on revenue of $24.52 billion. Last quarter, the company posted a 19.2% upside earnings surprise, as it earned $6.40 per share.
First Solar (NASDAQ:FSLR), the largest maker of thin film solar modules in the world, surged 6.80%, posting one of the biggest percentage gain in the NASDAQ-100 and closing just below its calculated resistance at $126. A bullish research note from Jefferies helped the stock during the session. The firm said that the company has taken on a robust project opportunity that will insulate it from further price declines in the spae.
Sina Corp. (NASDAQ:SINA), the Chinese online media company and owner of the Weibo microblogging service commonly referred to as the Twitter of China, rallied 6.05% to $100.54, extending the prior session rally, sparked by an upgrade to a Neutral rating at Goldman Sachs. The company entered a partnership with a Japanese company to market its Weibo service in Japan. Sina also started testing an online photo album service with editing functions. Last Week Jefferies reiterated its Buy rating, but trimmed its target price to $121.
Mid week, stocks advanced for the third straight session, led by financials after Greece passed its austerity measure plan, the Fed unveiled its debit card sweep fees, and after an encouraging pending home sales report.
In Asia, stocks ended mostly higher on the back of the strong performance in the U.S. market, hopes that the Greek parliament will pass the austerity measure plan to help the euro zone avoid default, and better than expected industrial output in Japan, jumping 5.7% in May, the biggest expansion monthly in 60 years, which helped the Nikkei to close at a 7-week high.
Among the S&P 500 sectors, financials, energy, and materials led the advance. Financials were the best sector as the Greek vote eased concern of systemic risk entering in the banking system, as the Fed proposed less onerous debit cards interchange fees than previously fear, and with Bank of America (NYSE:BAC) jumping 2.96% to $11.14 after trading as high as $11.25 and trading above calculated resistance at $10.94. The Charlotte, NC based bank reached a final settlement with mortgage back securities investors in which it will pay $8.5 billon, putting to rest charges that the bank failed to service mortgage loans properly leading to losses for investors who bought at least $47 billion worth of mortgage backed securities. Earlier in the year, Bank of America had estimated losses from mortgage put-backs at $7 to $10 billion. Shares were losing some steam towards the end of the session, but received a jolt after the Fed announced that debit card swipe fees would be capped at 22 cents, higher than initially proposed.
Rival Citigroup (NYSE:C), the third largest lender in the U.S., also benefited in the sector. Shares jumped 3.36% to $41.50, closing above calculated resistance at $41.17, after Bank of America Merrill upgraded the stock to a Buy.
Also in the sector, NASDAQ OMX Group (NASDAQ:NDAQ), the global operator of stock markets and owner of the NASDAQ market site, rallied 4.71% to $25.14 on news that the Toronto and London Stock Exchanges abandoned plans for a $3.7 billion merger, leaving both in play in a world already facing a wave of exchange consolidation, which could lead to a potential tie-up with the NASDAQ.
Both operators of global payment networks, Visa (NYSE:V) and MasterCard (NYSE:MA) surged on news that less onerous cap for debit card swipe fees that its was previously expected. In addition to the 21 cents fee, banks would be allowed to charge 5 basis points per transaction to cover fraud losses. Visa soared to the top of the S&P 500, rallying 15% to $86.57 and posting a new 52-week high at $87.32; while MasterCard surged more than 11% to $309.70, posting a new 52-week high.
The euro gained against the Dollar with as the Greek austerity plan moved forward, this bode well for commodities, like gold, silver and crude oil. Gold rallied for 0.7% to close at $1510.60 per ounce, while July silver surged 3.5% to end at $34.80 per ounce.
iShares Silver Trust ETF (NYSE:SLV), the fund that corresponds to the price of silver owned by the Trust less expenses and liabilities, jumped 3.33% to $34.01, as silver prices traded near $35 an ounce, with the metal attracting a bid on Dollar weakness following the Greek vote on its austerity plan. The trust extended its year to date gain 12.69%, with shares trimming its June decline to 9.55%. The Silver Trust has calculated support at $32.53 and resistance at $35.85.
The material sector also received a major lift from steelmakers and from better than expected earnings from Monsanto.
AK Steel (NYSE:AKS), the Ohio based steel company, and U.S. Steel (NYSE:X), the integrated steel producer with operations in North America and Europe, were upgraded to a Buy from Hold at Deutsche Bank. Both stocks rallied more than 5%, with U.S. Steel closing above calculated resistance at $43.47 and AK Steel closing above calculated resistance at $14.87.
Monsanto (NYSE:MON), the agricultural business company, surged 5.02% to $70.26 after an upside earnings surprise, thanks to robust sales of its seeds and genetic traits business. Monsanto earned for the quarter $1.26 per share, $0.15 better than consensus, on revenues that jumped 21% to $3.59 billion. The company also guided fiscal 2011 earnings per share above consensus. Argus reiterated its Buy rating on the stock, following the strong quarterly results.
Crude oil benefited from the weakness in the Dollar, coupled with a sense that the global economy is in better shape than estimated and after a bullish inventory report for last week in the U.S. Oil rallied 2% to $94.77, while Brent pushed also higher expanding the gap from WTI, to levels before the IEA announcement of the release of the 60 million reserves.
Chevron (NYSE:CVX), the second largest U.S. energy producer, climbed 0.93% to $101.28, as crude oil rallied above $94 per barrel, closing practically at the level before the IEA announcement of release of reserves last week. Chevron has calculated support at $9 and resistance at $105.21.
Technology slightly underperformed the broad market index, receiving a jolt toward the end of the session from MasterCard and Visa. But Apple (NASDAQ:AAPL) dragged, with shares falling 0.36% to $334.04 as the iPhone speculation continued. RBC Capital noted in a research note that Apple is expected to cut the iPhone 3GS price to $0 on a 2-year contract in conjunction with the iPhone 5 launch, which the firm continues to expect for September. According to the firm, this approach is intended to target mid-market smartphone buyers and counter Android's mid-market expansion.
On Thursday, the market started on a positive note amid overseas gains o optimism surrounding the Greece debt situation and the state of the global economy as weekly jobless claims came more or less in line with expectations, with participants dismissing the continued weakness in the labor market.
In Asia, the Nikkei under performed, ending slightly higher after pulling back at 7-week highs, as Manufacturing PMI slowed down slightly from the prior month. Shanghai rebounded from the prior session loss on news report that suggested first half GDP growth would reach 9.5% and CPI of 5.3%.
In Europe, equity markets moved to their highest level in almost 4-weeks after the Greek parliament voted on a final passage of the austerity measures plan that will help the debt-stricken country secure additional emergency financial aid to meet their short-term debt obligations.
The market also received a boost from a surprise in the Chicago Fed manufacturing reading. The Purchase Manager's Index registered a 61.1 reading, up from May's 56.6 and ahead of expectations for a 53.
All of the S&P 500 sectors finished in positive territory, with industrials, energy, and technology posting the biggest gains, while utilities, healthcare, and financials under performed. The industrial sector climbed 1.58% as a group, with Caterpillar (NYSE:CAT) rallying 3% to $106.46, posting the second biggest percentage gain in the Dow Jones Industrial Average. Caterpillar moved higher on Dollar weakness and after surprise PMI reading. During the first quarter, Caterpillar was one of the top Dow components; in this quarter the stock didn’t fare as well, losing 4.36%.
While the energy sector climbed close to 1.5%, as natural gas finished higher by 1.4% following bullish inventory data and after crude oil edged higher to close at $95.42 per barrel. Big oil was active on the back of the higher prices in the energy complex. BP (NYSE:BP), the London, UK based energy giant, jumped 1.9% to $44.29, closing above calculated resistance at $43.50 and turning positive for the year, climbing 0.27%.
Chevron (NYSE:CVX) gained 1.54% to $102.84, as it also outperformed. The stock ha calculated support at $97 and resistance at $105.21. Chevron closed the quarter with a 4.33% loss.
Tesoro (NYSE:TSO), the crude oil refiner based in San Antonio, TX, was a top performer in the sector, as shares surged 3.57% to $22.91 buoyed by higher gasoline prices. Tesoro was initiated earlier in the week with a Neutral and a target price of $23 at UBS.
Financials underperformed on the session, climbing 0.39% as a group, with big banks struggling in the day. Bank of America (NYSE:BAC) gave back a portion of its prior session rally, with shares falling 1.62% to $10.96. The stock was able to held its calculated resistance level at $10.91. The stock finished the first half of the year with 17.8% loss.
Morgan Stanley (NYSE:MS), the operator of a global securities business, fell 1.6% to $23.01 after Mitsubishi UFJ completed its conversion of Morgan Stanley shares, causing the bank to take a $1.7 billion charge for the second quarter. For the quarter, Morgan Stanley tumbled 15.78%.
The tech sector was active, with participants bidding the sector higher. First Solar (NASDAQ:FSLR) jumped 2.2% to $132.27 after the Energy Department offered $4.5 billion in loan guarantees to back three projects by the Tempe, Ariz.-based company. First Solar was also initiated with a Positive at a target price of $160 at Avian.
Apple (NASDAQ:AAPL) was able to climb 0.49% to $335.67, despite reports that Samsung Electronics filed a complaint with the U.S. International Trade Commission (ITC) over Apple’s violation of five patents held by Samsung related to wireless communications standards and mobile device user interface. On its compliant, Samsung is seeking for the commission to ban iPhone imports into the U.S., in which is the latest fight in a long series of suits between both companies. Apple was able to trim its quarterly loss to 3.68%
In the materials sector, precious metals had somewhat muted session following the austerity vote in Greece. Gold fell 0.5% to $1502.90, while silver closed nearly unchanged at $34.76.
Monsanto (NYSE:MON) was a top performer in the materials sector, with shares extending the prior session rally by 3.25% to $72.54. Ticonderoga raised its target price to $82 from $80, as the firm noted the seed industry will have pricing flexibility, mostly a richer product mix of brand new products this autumn for the upcoming 2012- 2013 crop year given the tailwind of sharply higher crop prices.
At the end of the week, stocks closed sharply higher ahead of the long holiday weekend to finish their best week in almost 2-years after Wall Street cheered a better than expected manufacturing report, which helped eased concern about the state of the U.S. economic recovery.
In Asia, stocks closed with modest gains. Shanghai closed in positive territory after China’s manufacturing PMI data hit a 28-month low, which tempered gains, while the Nikkei added 0.5%, despite the Tankan Survey data that was weaker than expected.
In Europe, shares closed higher for a fifth day, led by banks, which continued their rally after the Greek parliament passed the country’s austerity measures plan that eased concern that systemic risk will enter the banking system from a potential Greek default.
Stocks moved from near the neutral line to significant gains after the Institute for Supply Management said its index of national factory activity rose to 55.3 from 53.5 the month before. The reading was better than expected.
Participants shrugged off news that the U.S. consumer sentiment worsened in June as consumers worried amid economic uncertainty despite falling gasoline prices. The final reading for the consumer sentiment index came in at 71.5, down from 74.3 the month before and slightly below the preliminary June figure of 71.8.
All of the S&P 500 key sectors finished with gains, with consumer discretionary, financials and industrials leading the advance, while consumer staples, materials, energy, and healthcare underperforming the broad market index.
The consumer discretionary sector was the top performer, jumping more than 2%, with Apollo Group (NASDAQ:APOL), the provider of educational programs, was surging more than 6% to $46.46 following an upside earnings surprise and after the company issued inline guidance. FBR Capital raised its target price to $47 from $45 following the Apollo’s earnings beating consensus by $0.12 per share.
Wynn Resorts (NASDAQ:WYNN) rallied more than 4% to $149.57, after the Macau Gaming Inspection and Coordination Bureau reported June gross revenues that jumped 52% year over year to 20.79 billion patacas or about $2.59 billion, following a prior surge of 65% in May. Macau’s gaming revenue surged 44% in the second quarter and is now posting an increase of 45% year to date, according to the Bureau. Wynn generated about 69% of its first quarter revenue and approximately 67% of its first quarter adjusted EBITDA from Macau. The casino space was also benefiting from increased economic optimism.
Las Vegas Sands (NYSE:LVS), the owner and operator of casino resorts and convention centers in the U.S., Macau, and Singapore, jumped 3.98% to $43.89, closing above its 200day moving average at $43.48, also benefiting from the Macau gaming numbers. Las Vegas Sands generated about 55% of its first quarter revenue and approximately 51% of its first quarter adjusted EBITDA from Macau.
Financials gained 1.8%, as the sector received a lift from the performance in shares of NASDAQ OMX (NASDAQ:NDAQ), JPMorgan (NYSE:JPM) and Citigroup (NYSE:C). NASDAQ OMX surged 3.24% to $26.12, trading above calculated resistance at $25.70, on continued M&A speculation in the space.
JPMorgan (NYSE:JPM) jumped 2.19% to $41.58, posting the second biggest percentage gain in the Dow Jones Industrial Average, while trimming its year to date decline to 1.98%.
Citigroup (NYSE:C) rallied 2.98% to $42.88, after trading as high as $43.06, on the back of strength in the financial sector. Citi was seeing a strong bid at the start of the second half of the year, trimming its year to date decline to 9.34%.
The industrial sector received the boost from the better than expected manufacturing report. Caterpillar (NYSE:CAT) jumped more than 2% to $108.62, posting one of the biggest percentage gains in the blue chip index.
In tech land, Apple (NASDAQ:AAPL) rallied 2.26% to $343.26, as the company was part of a consortium, which includes LM Ericsson, EMC Corp, Sony, Research In Motion, and Microsoft, and will be acquiring Nortel Networks’ patent portfolio for $4.5 billion. The extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking. Apple fared well after the International Trade Commission delayed its final ruling on Eastman Kodak’s complaint that Apple’ iPhone and Research In Motion violated its patent related to the method used to preview images, while upholding portions of a ruling unfavorable to the maker of digital cameras, film and printers.
On the flip side, shares of Eastman Kodak (NYSE:EK) plunged more than 14% to $3.07 on the unfavorable news for the company, regarding its patent complaint against Apple and RIM, which could have represented about $1 billion in licensee fees.
In the material sector, Alcoa (NYSE:AA), the aluminum producer, was a top performer in the sector, with shares jumping 2.84% to $16.31, posting the biggest percentage gain in the blue chip index, on the back of the improved numbers in manufacturing and as automakers reported their June sales.
But precious metals performed poorly, with the safe haven trade unwinding following eased concerns over a Greek default and economic uncertainty. Gold prices dropped 1.3% to $1483.80 per ounce while silver sank 3.2% to $33.72 per ounce.
iShares Silver Trust ETF (NYSE:SLV), the fund that corresponds to the price of silver owned by the Trust less expenses and liabilities, fell 2.48% to $33, as silver prices closed below the $34 an ounce level. The trust closed the first half of the year with a gain 12.13%, with shares falling 10% in June, which followed a 19.8% plunge in May. The Silver Trust has calculated support at $32.53 and resistance at $35.85.
Energy finished in positive territory despite lower prices in the energy complex. Crude oil prices pared losses seen in early pit trade to log a 0.7% loss at $94.79 per barrel, but the energy component finished the week 4% higher. Natural gas prices fell 1.4% to $4.34 per MMBtu. The commodity was under pressure all session, but it was able to advance almost 3% for the week.
Marathon Oil (NYSE:MRO), the integrated oil company based in Houston, TX, surged 3.03% to $32.95 after the company has just completed its spinoff of its downstream business, creating a new company called Marathon Petroleum (NYSE:MPC). Marathon Oil will maintain its ticker and will now be a company solely focusing in exploration and production of crude oil and natural gas. Oppenheimer set its target price on the new Marathon Oil (NYSE:MRO) at $40, noting that the stock is now one of the most undervalued large E&P companies with its shares trading at lower multiples of earnings, cash flow, and EBITDA than most of its peers.
Marathon Petroleum (NYSE:MPC), the second largest independent refining company in the U.S., gained 1.93% to $42.20 on its debut in the NYSE. Marathon Petroleum was initiated with an Outperform and a target price of $50 at Oppenheimer and with a Buy at Deutsche Bank. The stock also received an Outperform rating at Oppenheimer. Marathon Petroleum replaced Radio Shack on the S&P 500 Index.
Stocks, Commodities Climb on Economic Outlook as Dollar Weakens
Indonesian stock info - Stocks, Commodities Climb on Economic Outlook as Dollar Weakens : Stocks advanced, helping the MSCI All-Country World Index pare its weekly loss, and commodities climbed after leaders of the Group of Eight said the global economy is gaining strength. The dollar weakened, and U.S. index futures were little changed.
The MSCI equity index rose 0.5 percent at 10:30 a.m. in London, leaving the gauge little changed after three weeks of declines. Standard & Poor’s 500 Index futures slipped 0.1 percent. The S&P GSCI index of 24 commodities jumped 0.3 percent as silver and copper gained. The dollar slid against all but one of its 16 major peers, while the Swiss franc rose to records against the dollar, the euro and the pound.
The strengthening world economy will pave the way for reductions in debt, G-8 leaders said before the end of their two-day summit, according to a draft statement. Confidence in the recovery may be hurt by reports today that will probably show U.S. personal spending and home sales weakened, following data yesterday that indicated slower growth in the world’s largest economy.
“Following the recent market decline, stock valuations are offering investors some scope for upside,” said Ng Soo Nam, the Singapore-based chief investment officer at Nikko Asset Management Co., which oversees about $126 billion. “While the U.S. economy is showing a painfully slow pace of recovery, I’m comfortable as long as the momentum doesn’t reverse.”
The Stoxx Europe 600 Index climbed 0.9 percent, erasing its loss for the week. HSBC Holdings Plc, Europe’s biggest lender, advanced 1.3 percent and BNP Paribas SA of France jumped 2.9 percent after Citigroup Inc. recommended buying shares in European banks.
Russia, China
The MSCI Emerging Markets Index advanced 0.8 percent, heading for the highest closing level in two weeks. Russia’s Micex Index gained 1.1 percent as OAO Lukoil and OAO Gazprom climbed. The Shanghai Composite Index lost 1 percent, extending the biggest weekly drop in 11 months, on concern inflation will accelerate. Turkey’s ISE National 100 Index fell 2.1 percent after JPMorgan Chase & Co. cut its rating on the market to “underweight” from “overweight,” citing a growing current- account deficit and reduced profit forecasts for banks.
The gain in U.S. futures indicated the S&P 500 will climb for a third day. A U.S. Commerce Department report may show consumer spending advanced 0.5 percent in April, the smallest gain in three months, according to the median estimate of economists surveyed by Bloomberg. Contract signings for existing homes fell 1 percent in April after a 5.1 percent increase the prior month, economists said before a report from the National Association of Realtors.
Japan
The yen appreciated 0.4 percent against the dollar, while the yield on the 10-year Japanese government bond fell three basis points. Japan’s policy makers, striving for more than two years to end deflation, refrained from calling a victory after consumer prices rose in April, with a recession damping the nation’s outlook. The Nikkei-225 Stock Average declined 0.4 percent, capping its third weekly drop. Japan had its credit outlook lowered to negative from stable by Fitch Ratings.
The Dollar Index, which tracks the U.S. currency against those of six trading partners, dropped 0.4 percent, paring its first monthly advance since November. The euro strengthened 0.4 percent to $1.4204. The Swiss franc climbed as much as 1.4 percent against the dollar, 0.6 percent versus the dollar and 1.2 percent against the pound.
The yield on the 10-year German bund fell two basis points, while the two-year yield slipped three basis points. The yield on the Irish 10-year bonds advanced eight basis points, while the similar-maturity Italian yield increased four basis points.
Silver jumped 0.8 percent. The U.S. Mint said its San Francisco facility will start producing American Eagle silver coins to meet demand that is at “unprecedented high levels.” Copper futures in New York climbed 1.1 percent after stockpiles of the metal in Shanghai declined for the 10th consecutive week. Oil rose 0.3 percent to $100.55 a barrel.
The MSCI equity index rose 0.5 percent at 10:30 a.m. in London, leaving the gauge little changed after three weeks of declines. Standard & Poor’s 500 Index futures slipped 0.1 percent. The S&P GSCI index of 24 commodities jumped 0.3 percent as silver and copper gained. The dollar slid against all but one of its 16 major peers, while the Swiss franc rose to records against the dollar, the euro and the pound.
The strengthening world economy will pave the way for reductions in debt, G-8 leaders said before the end of their two-day summit, according to a draft statement. Confidence in the recovery may be hurt by reports today that will probably show U.S. personal spending and home sales weakened, following data yesterday that indicated slower growth in the world’s largest economy.
“Following the recent market decline, stock valuations are offering investors some scope for upside,” said Ng Soo Nam, the Singapore-based chief investment officer at Nikko Asset Management Co., which oversees about $126 billion. “While the U.S. economy is showing a painfully slow pace of recovery, I’m comfortable as long as the momentum doesn’t reverse.”
The Stoxx Europe 600 Index climbed 0.9 percent, erasing its loss for the week. HSBC Holdings Plc, Europe’s biggest lender, advanced 1.3 percent and BNP Paribas SA of France jumped 2.9 percent after Citigroup Inc. recommended buying shares in European banks.
Russia, China
The MSCI Emerging Markets Index advanced 0.8 percent, heading for the highest closing level in two weeks. Russia’s Micex Index gained 1.1 percent as OAO Lukoil and OAO Gazprom climbed. The Shanghai Composite Index lost 1 percent, extending the biggest weekly drop in 11 months, on concern inflation will accelerate. Turkey’s ISE National 100 Index fell 2.1 percent after JPMorgan Chase & Co. cut its rating on the market to “underweight” from “overweight,” citing a growing current- account deficit and reduced profit forecasts for banks.
The gain in U.S. futures indicated the S&P 500 will climb for a third day. A U.S. Commerce Department report may show consumer spending advanced 0.5 percent in April, the smallest gain in three months, according to the median estimate of economists surveyed by Bloomberg. Contract signings for existing homes fell 1 percent in April after a 5.1 percent increase the prior month, economists said before a report from the National Association of Realtors.
Japan
The yen appreciated 0.4 percent against the dollar, while the yield on the 10-year Japanese government bond fell three basis points. Japan’s policy makers, striving for more than two years to end deflation, refrained from calling a victory after consumer prices rose in April, with a recession damping the nation’s outlook. The Nikkei-225 Stock Average declined 0.4 percent, capping its third weekly drop. Japan had its credit outlook lowered to negative from stable by Fitch Ratings.
The Dollar Index, which tracks the U.S. currency against those of six trading partners, dropped 0.4 percent, paring its first monthly advance since November. The euro strengthened 0.4 percent to $1.4204. The Swiss franc climbed as much as 1.4 percent against the dollar, 0.6 percent versus the dollar and 1.2 percent against the pound.
The yield on the 10-year German bund fell two basis points, while the two-year yield slipped three basis points. The yield on the Irish 10-year bonds advanced eight basis points, while the similar-maturity Italian yield increased four basis points.
Silver jumped 0.8 percent. The U.S. Mint said its San Francisco facility will start producing American Eagle silver coins to meet demand that is at “unprecedented high levels.” Copper futures in New York climbed 1.1 percent after stockpiles of the metal in Shanghai declined for the 10th consecutive week. Oil rose 0.3 percent to $100.55 a barrel.
Civets fund, new HSBC fund exotic stock markets
Indonesian stock info - The Civets fund exotic stock markets : HSBC Global Asset Management has launched a fund which invests in a range of emerging countries that go beyond the Bric nations.
The Civets fund, which is available to both small investors and financial institutions globally, invests in Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa.
It targets long-term returns from capital growth and income by investing in a diversified portfolio of equities from the stock exchange of these countries.
The Civets nations have been identified as having the potential to outperform the now well established Brics emerging markets, of Brazil, Russia, India and China.
The fund also has the ability to invest up to 25% in non-Civets nations which have similar attractive prospects according to HSBC. These other countries include Mexico, Nigeria, Philippines, Thailand, Malaysia and Saudi Arabia.
HSBC argues that these Civet nations are among the next generation of emerging markets and echo many of the demographic qualities inherent in larger developing markets such as the Bric nations.
Over the past five years, HSBC says that Civets equities outperformed not only global emerging markets equities but also Brics equities – making it a very interesting prospect indeed.
Why the 'Civets'?
Each of the Civets countries has a relatively diverse and dynamic economy without extreme dependence on external demand or commodity exports that characterise some parts of the emerging world.
The countries also have a relatively low level of public debt as well as corporate and household debt.
Collectively, the Civets group of countries has a population of around 600m with an average age of 27, representing 8% of the global population.
HSBC has outlined its target allocation for each country. Indonesia, Turkey and South Africa will each have a 25% weighting, with Colombia having 16%, Egypt 7.5% and Vietnam 1.5%.
Nick Timerlake, the global head of emerging market equities, will oversee the overall management of the Civets fund.
The base currency of the fund is US Dollar and the minimum investment is $5,000 for retail investors, with a 1.75% annual management charge.
What about the downsides?
The first issue for UK investors in the HSBC Civets fund is currency risk. The Luxembourg-based fund is denominated in dollars, meaning returns will be affected by fluctuations between sterling and the US currency.
The Civets handle, cooked up for the basket of markets by former HSBC head honcho Michael Geoghan, is also essentially a rebranding of what has formerly been called frontier markets investing.
The advantage of that frontier markets label was that it gave some impression that investing in these markets is typically viewed as more volatile and riskier than either the established Brics or the western markets.
Some investors would disagree and argue that the Civets nations are no less stable than debt-laden western economies in Europe and America, however, in most people's eyes the Civets markets fall onto the more risky pile and that will make them more volatile.
As an example, the uprising in Egypt recently saw veteran leader Hosni Mubarak ousted, its stock market closed and the benchmark index the EGX 30 is down 24% since the start of the year.
The upshot of that riskiness is that while the Civets have great potential for growth, they could also take a tumble and this is a place for the brave and not your life savings.
The HSBC fund has a hefty $5,000 initial investment and comes with an annual management charge of 1.75%, fairly average for a fund, but high compared to the cost of investing through ETFs and investment trusts, although as of yet there are no real rivals in those fields that target the Civets.
Investors could gain themselves smaller exposure to the same markets, at a potentially lower cost, through more established emerging market funds and trusts.
The Civets fund is also not yet available through fund supermarkets, which discount or remove initial charges, although it could be in the future. Currently, investors can buy it through a financial adviser.
As ever, inexperienced investors or those who are unsure of whether they should invest in the Civets fund should consult an independent financial adviser.
The Civets fund, which is available to both small investors and financial institutions globally, invests in Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa.
It targets long-term returns from capital growth and income by investing in a diversified portfolio of equities from the stock exchange of these countries.
The Civets nations have been identified as having the potential to outperform the now well established Brics emerging markets, of Brazil, Russia, India and China.
The fund also has the ability to invest up to 25% in non-Civets nations which have similar attractive prospects according to HSBC. These other countries include Mexico, Nigeria, Philippines, Thailand, Malaysia and Saudi Arabia.
HSBC argues that these Civet nations are among the next generation of emerging markets and echo many of the demographic qualities inherent in larger developing markets such as the Bric nations.
Over the past five years, HSBC says that Civets equities outperformed not only global emerging markets equities but also Brics equities – making it a very interesting prospect indeed.
Why the 'Civets'?
Each of the Civets countries has a relatively diverse and dynamic economy without extreme dependence on external demand or commodity exports that characterise some parts of the emerging world.
The countries also have a relatively low level of public debt as well as corporate and household debt.
Collectively, the Civets group of countries has a population of around 600m with an average age of 27, representing 8% of the global population.
HSBC has outlined its target allocation for each country. Indonesia, Turkey and South Africa will each have a 25% weighting, with Colombia having 16%, Egypt 7.5% and Vietnam 1.5%.
Nick Timerlake, the global head of emerging market equities, will oversee the overall management of the Civets fund.
The base currency of the fund is US Dollar and the minimum investment is $5,000 for retail investors, with a 1.75% annual management charge.
What about the downsides?
The first issue for UK investors in the HSBC Civets fund is currency risk. The Luxembourg-based fund is denominated in dollars, meaning returns will be affected by fluctuations between sterling and the US currency.
The Civets handle, cooked up for the basket of markets by former HSBC head honcho Michael Geoghan, is also essentially a rebranding of what has formerly been called frontier markets investing.
The advantage of that frontier markets label was that it gave some impression that investing in these markets is typically viewed as more volatile and riskier than either the established Brics or the western markets.
Some investors would disagree and argue that the Civets nations are no less stable than debt-laden western economies in Europe and America, however, in most people's eyes the Civets markets fall onto the more risky pile and that will make them more volatile.
As an example, the uprising in Egypt recently saw veteran leader Hosni Mubarak ousted, its stock market closed and the benchmark index the EGX 30 is down 24% since the start of the year.
The upshot of that riskiness is that while the Civets have great potential for growth, they could also take a tumble and this is a place for the brave and not your life savings.
The HSBC fund has a hefty $5,000 initial investment and comes with an annual management charge of 1.75%, fairly average for a fund, but high compared to the cost of investing through ETFs and investment trusts, although as of yet there are no real rivals in those fields that target the Civets.
Investors could gain themselves smaller exposure to the same markets, at a potentially lower cost, through more established emerging market funds and trusts.
The Civets fund is also not yet available through fund supermarkets, which discount or remove initial charges, although it could be in the future. Currently, investors can buy it through a financial adviser.
As ever, inexperienced investors or those who are unsure of whether they should invest in the Civets fund should consult an independent financial adviser.
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