 Market Update By Uwcfx - 05.08.2011 |
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Replies(20 - 29)
| KerstiUWC |
 Sep 13 2011, 06:50 AM
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Junior Money Maker
Group: Members
Posts: 82
Dream Points: 460
Experience Points: 132
Joined: 27-June 11
Member No.: 175,171
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13.09.2011
Weak EURO regains
some of its losses
The EURO regained some its early steep losses after dipping to 1.3550 in yesterday’s inter-day trading. Euro/USD is trading at at 1.3678 this morning, recovering somewhat. Oil prices are up 1 % with Brent close to 113. Gold has recovered from it’s low on 1815 trading at 1834. Stock futures for Europe are pointing up after yesterday’s onslaught hitting banks and financial shares especially hard.
After falling close to 20 % in 2011 European stocks continue to be highly volatile even more so than their American pairs. The sovereign debt in Greece and the fear for a default continue to create nervousness not only in Europe, but far beyond. Pessimism continues to rule the day. Amid rumors that China is buying Italian bonds, Italian Premier, Berlusconi, heads to Brussels to present his austerity package, keeping the fear for a Greek “development” in other Eurozone countries very much alive.
The future fate of the Euro continues to be on everybody’s mind. Forecasts point to a further weakening of EURO with a next test on low levels at 1.19 – 1.20 within a foreseeable future. YEN/USD has recovered trading at 77,03. GBP/USD is still below 1.60.
Expect currency volatility to continue during the week, giving traders new opportunities. Most observers seem to count on Greece’ willingness to follow up on austerity measures and troika demanded “reforms” to secure payment of September tranche. This should lead to a temporary strengthening of the Euro.
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| KerstiUWC |
Sep 14 2011, 07:46 AM
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Junior Money Maker
Group: Members
Posts: 82
Dream Points: 460
Experience Points: 132
Joined: 27-June 11
Member No.: 175,171
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14.09.2011
Greece unnerves
global markets
After a short spell of relief and as a reaction to the latest steep decline of the EURO, fear and nervousness again dominated global markets with Euro/USD trading at 1.3625. An emergency meeting is called between the prime ministers from Germany, France and Greece after Merkel assuring that Germany would not allow Greece to default.
It is expected that the two leading EU-countries, France and Germany, shall issue a strong warning to Greece to live up to its austerity and reform promises; simultaneously stressing willingness to take what it costs to bail Greece out and save the Euro. A strong political message seems absolutely necessary to calm global markets overreacting on unsubstantiated news and speculative rumors.
After a mixed session in the US, Asian markets again dropped on fear of a banking collapse in Europe following a Greek default. In a key speech the Premier plaid down Chinese willingness to come to the support of striving European economies. He stressed that China with its huge reserves are ready to invest in Europe, only preconditioned that Europe got their finances in order.
The major French banks rebounded strongly yesterday after an initial 10 % tumbling on fears that the French banks no longer had USD available. The panic sell stresses the contagion effects a possible Greek default shall have on banks and the banking system. US Finance Secretary,Timothy Geithner, is going to talk tough to its European counter-parties at a meeting at the end of the week. But is Geithner in a position to talk tough? He travels when a record high 62 % of US citizens have lost belief in President Obama’s and his own handling of the US economy.
Oil prices are falling on expected slower growth. Gold is also down at 1820. US/Yen at 76,89.
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| KerstiUWC |
Sep 19 2011, 07:14 AM
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Junior Money Maker
Group: Members
Posts: 82
Dream Points: 460
Experience Points: 132
Joined: 27-June 11
Member No.: 175,171
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19.09.2011
Asia mainly in
"a red zone"
Following the results of the American session on Friday: Dow has raised on 75,91 points (+0,66 %) - to 11509,09 points, S&P has grown on 6,9 points (+0,57 %) - to 1,216,01 points, NASDAQ has risen on 15,24 points (+0,58 %) - to 2622,31 points.
Trading session in Asia, excluding Japan, passing mainly in "a red zone": Hang Seng-2,1 %, Nikkei 225 +2,25 %, Shanghai Composite-1,41 %. Chinese stocks decrease to 14-month's minimum in connection with statements of the prime minister of the country Ven Tszjabao that the country government intends to take all necessary measures for control of inflation. Additional pressure is rendered by fears of investors as regards coming IPO will lead to reduction of demand for securities already being in circulation.
Precious metals mainly up in New York: gold - 1825,82 dollars/un. (+0,61 %), silver - 40,68 dollars/un. (-0,36 %), platinum – 1821.62 dollars/un. (+0,42 %). The prices for industrial metals are: copper - 8504,75 dollars/t (-1,87 %), nickel - 21168 dollars/t (-1,5 %), aluminium - 2358 dollars/t (-0,92 %).
Oil futures, bargain with descending dynamics: Brent - 111,32 dollars/barr. (-0,8 %), Light Sweet - 86,86 dollars/barr. (-1,4 %).
The future fate of the Euro continues to be on everybody’s mind. Decrease in currency pair promotes negative dynamics in the oil market.
From events it is necessary to allocate performance of the US president of B.Obama before the Congress with the offer on increase of the tax for citizens, whose revenue exceeds $1 million it is necessary to notice that this point in question is one of the main stumbling-blocks between democrats and republicans that doesn't add optimism on the markets.
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| KerstiUWC |
Sep 20 2011, 07:36 AM
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Junior Money Maker
Group: Members
Posts: 82
Dream Points: 460
Experience Points: 132
Joined: 27-June 11
Member No.: 175,171
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20.09.2011
Threat of a default of Greece
keeps the market in suspense
On Monday, on September, 19th, the basic American indexes were closed with fall, winning back threat of the Greek default. Players were focused on a situation in Europe, and all attention has been chained to conference regarding Greek debt. Investors tend to opinion that Greece declares itself insolvent, and the possibility of a default for the next 5 years exceeds 90 %.
Following the results of the trading session the indicator of "blue chips" index Dow Jones Industrial Average has gone down on 0, 94 % and was closed on a level of 11401,01 points, the index S&P 500 has fallen on 0,98 % to the level of 1204,09 points, and the index of hi-tech companies Nasdaq has reddened on 0,36 % to a level of 2612,83 points.
"Blue chips" were closed mainly in red territory. The greatest losses have caused a stir Bank of America (-3,32 %), JPMorgan (-2,81 %), American Express (-2,87 %), Alcoa (-3,26 %).
The price for futures for oil of LIGHT has decreased on $2,26 or 2,6 % to level of $85,70 for barrel. Oil has gone down in price to minimum for 3 last week’s marks in connection with fears of delay of global economy and reduction of demand for energy carriers in case of default approach in Greece. Price for BRENT is on level of 109.06 for barrel.
The price for futures for gold has decreased on $35,80 or 2 % to value of $1778,90 for ounce. Gold has fallen to its minimum price since August, 25th of final level owing to essential strengthening of dollar concerning the majority of competing reserve currencies.
Results of session of FRS which will begin today, in many respects will define the future of the world financial markets on mid-range term prospect. We will remind that investors would prefer to hear the announcement of a new round of quantitative softening QE3 from B.Bernanke.
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| KerstiUWC |
Sep 21 2011, 07:11 AM
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Junior Money Maker
Group: Members
Posts: 82
Dream Points: 460
Experience Points: 132
Joined: 27-June 11
Member No.: 175,171
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21.09.2011
EUR/USD:
the intrigue remains!
That fact, that negotiations between Greece and EU, ECB, IMF are tightened for a week, means that we are not going to see sharp growth of EUR/USD within next few days. Some encouraging moment for euro also can be that recently the financial markets, in particular currency, have ceased to react to a stream of negative news from Europe that besides assumes some improvement of a situation with appetite to risk (positively for EUR/USD).
From good news it is necessary to notice messages that Fitch has confirmed a credit rating of Germany at level ААА on September, 21st.
Situation in USA seems not to be better then in Euro zone. Yesterday the IMF has lowered forecasts on world economy growth on 2011 and 2012 years on 0,3 % and 0,5 % accordingly to 4 % for both years.
Following the results of session - Dow Jones Industrial Average has raised on 7,65 points or 0,07 % to level in 11408,66, Standard and Poor's 500 has decreased for 2,00 points or 0,17 % to a level 1202,09, and Nasdaq Composite has left in a minus on 22,59 points or 0,86 % and has reached a point 2590,24.
Gold company Newmont Mining has jumped up on 5,5 % on the basis of comments of Richard O’Briens’ - he has declared that gold till the end of 2012 can go up in price to $2000 for ounce. The world markets recently brought to us so many surprises that it can quite appear a reality much earlier, isn't it?
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| KerstiUWC |
Sep 28 2011, 06:50 AM
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Junior Money Maker
Group: Members
Posts: 82
Dream Points: 460
Experience Points: 132
Joined: 27-June 11
Member No.: 175,171
|
28.09.2011
Short rally ends
in new volatility
After two days optimistic rally the markets in Asia were last night back to normal. Futures for Europe and US
are pointing down. Commodity prices are lower, and the EURO which got a boost following rumors on an
orderly Greek default, dropped back to Euro/USD 1.3559. USD/Yen is trading on 76,58. Oil is down 1,5 %
(NYMEX 93,50 and Brent 106,35)
September has been one of the worst months ever for commodities. Copper, zink and nickel have fallen steeply on
assumptions on lower economic growth, and even precious metals as gold, silver and palladium saw falls
between 10 and 20 %. There is no comfort for the metals that October traditionally is one of the worst
performing months for metals.
The rally over the last two days have been based on expectations and hope rather than fundamentals. the Merkel/
Papandreou meeting was marked by positive rhetoric, but Greece seems to heed closer to a default for each
passing day. New consumption and production figures coming from the US later today is not expected to
give the market any relief.
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