US: U.S. stocks fell, led by financial and commodity shares, after Federal Reserve Chairman Ben S. Bernanke urged banks to forgive more late loans and oil, gold and copper prices dropped from records.
Europe: European stocks retreated for a fifth day, led by technology companies and automakers, after Intel Corp. cut its profit forecast and PSA Peugeot Citroen said the car market may decline.
Asia: Asian stocks fell for a fourth day on concern record commodity prices and credit-market losses will erode earnings.
Commodities: Crude oil rose in New York as investors purchased commodities to hedge against inflation amid the dollar's decline. Gold fell the most in four weeks after crude-oil futures dropped from a record, reducing the appeal of the precious metal as a hedge against inflation.
Silver also retreated.
Currencies: The dollar traded near a three-year low against the yen on speculation a report today will show weakening demand for U.S. labor as the world's largest economy grapples with losses on subprime mortgages.
Source: Bloomberg
Showing posts with label Market updates. Show all posts
Showing posts with label Market updates. Show all posts
Wednesday, March 5, 2008
Tuesday, March 4, 2008
US Markets Closing Comments - 4th March 2008
Economic Summary
Today's unsettling mix of weak economic data, higher oil prices, and a falling
dollar kept equities near Friday's lows. Prices of Treasury coupon securities
fell, retracing only a small portion of last week's tremendous rally. The
dollar touched a new record low against the euro and fell for the fifth
consecutive trading day versus the yen.
The ISM Purchasing Managers Index met widespread expectations that it would
fall back below its neutral 50 level in February. The index dropped 2.4 points
to 48.3, slipping just below its previous trough of 48.4 for December. The
index hasn't been as low as 48.3 since the spring of 2003. The consensus was
looking for a slightly softer 48.0 level. The latest data suggest
manufacturing activity contracted in February.
Construction spending declined 1.7% in January, more than the consensus
forecast of a 0.7% decline. The surprise came in non-residential construction
activity, which had been quite strong of late. In January non-residential
construction dropped 1.2% after increasing in 23 of the previous 24 months.
Bad weather in January may have held back non-residential construction.
Alternatively, this could be the start of the slowdown in commercial
construction that we expect to take place this year.
With only a few small producers still to report, domestic car and light truck
sales in February were running at a sluggish 11.7mn rate. Sales rounded up to
6.6mn for light trucks and to 5.2mn for cars. If sustained after the late
reports are tallied, this would be the slowest annualized sales pace since
July, falling below the consensus call for an 11.9mn sales rate.
Economic Outlook
There are no major economic statistics scheduled for release in the US on
Tuesday, March 4.
Market Summary
The broad equity indexes found little opportunity to rally today in the face
of weak economic data, higher oil prices, and a weaker dollar. The best that
can be said is that equities did manage to climb from their 3pm lows to close
the day close to flat. Financial stocks performed the worst, losing 1.2%,
while basic materials outperformed (+1.6%). (DJ INDU 12259, -7; S&P500 1331,
+1; NASDAQ 2259, -13)
Today's unsettling mix of weak economic data, higher oil prices, and a falling
dollar kept equities near Friday's lows. Prices of Treasury coupon securities
fell, retracing only a small portion of last week's tremendous rally. The
dollar touched a new record low against the euro and fell for the fifth
consecutive trading day versus the yen.
The ISM Purchasing Managers Index met widespread expectations that it would
fall back below its neutral 50 level in February. The index dropped 2.4 points
to 48.3, slipping just below its previous trough of 48.4 for December. The
index hasn't been as low as 48.3 since the spring of 2003. The consensus was
looking for a slightly softer 48.0 level. The latest data suggest
manufacturing activity contracted in February.
Construction spending declined 1.7% in January, more than the consensus
forecast of a 0.7% decline. The surprise came in non-residential construction
activity, which had been quite strong of late. In January non-residential
construction dropped 1.2% after increasing in 23 of the previous 24 months.
Bad weather in January may have held back non-residential construction.
Alternatively, this could be the start of the slowdown in commercial
construction that we expect to take place this year.
With only a few small producers still to report, domestic car and light truck
sales in February were running at a sluggish 11.7mn rate. Sales rounded up to
6.6mn for light trucks and to 5.2mn for cars. If sustained after the late
reports are tallied, this would be the slowest annualized sales pace since
July, falling below the consensus call for an 11.9mn sales rate.
Economic Outlook
There are no major economic statistics scheduled for release in the US on
Tuesday, March 4.
Market Summary
The broad equity indexes found little opportunity to rally today in the face
of weak economic data, higher oil prices, and a weaker dollar. The best that
can be said is that equities did manage to climb from their 3pm lows to close
the day close to flat. Financial stocks performed the worst, losing 1.2%,
while basic materials outperformed (+1.6%). (DJ INDU 12259, -7; S&P500 1331,
+1; NASDAQ 2259, -13)
Financials Daily - 4th March 2008
US: Most U.S. stocks gained as record oil and gold prices spurred a rally in commodity producers, outweighing declines in technology and financial shares. Exxon Mobil Corp. and Freeport-McMoRan Copper & Gold Inc. helped the Standard & Poor's 500 Index recover from a decline of 0.8 percent and rise for the first time in four days.
Europe: European stocks retreated for a fourth day, led by financial companies, as Warren Buffett said ``the party is over'' for insurers and investors speculated banks may have more credit-market losses.
Asia: Asian stocks fell the most in a month, erasing February's gain, on concern worsening credit losses at financial companies will push the U.S. economy into a recession.
Commodities: Crude oil rose to a record after the dollar dropped to an all-time low against the euro, increasing the appeal of commodities as an alternative investment. Gold rose to a record $992 an ounce as the dollar fell to the lowest ever against the euro and crude oil neared $104 a barrel, stoking concern that inflation will accelerate. Silver climbed to the highest since 1980.
Currencies: The dollar traded close to the weakest ever against the euro on speculation the slumping U.S. economy will cause banks to report more losses from the collapse of the subprime-mortgage market.
Source: Bloomberg
Europe: European stocks retreated for a fourth day, led by financial companies, as Warren Buffett said ``the party is over'' for insurers and investors speculated banks may have more credit-market losses.
Asia: Asian stocks fell the most in a month, erasing February's gain, on concern worsening credit losses at financial companies will push the U.S. economy into a recession.
Commodities: Crude oil rose to a record after the dollar dropped to an all-time low against the euro, increasing the appeal of commodities as an alternative investment. Gold rose to a record $992 an ounce as the dollar fell to the lowest ever against the euro and crude oil neared $104 a barrel, stoking concern that inflation will accelerate. Silver climbed to the highest since 1980.
Currencies: The dollar traded close to the weakest ever against the euro on speculation the slumping U.S. economy will cause banks to report more losses from the collapse of the subprime-mortgage market.
Source: Bloomberg
Monday, March 3, 2008
Financials Daily - 3rd March 2008
US: U.S. stocks tumbled, capping the market's fourth-straight monthly drop, after a report showed business activity fell to the lowest level since 2001 and UBS AG said losses in credit markets may top $600 billion.
Europe: European stocks fell, sending the Dow Jones Stoxx 600 Index to its fourth straight monthly decline, on mounting concern the U.S. economy is slipping into a recession and financial companies will report more writedowns.
Asia: Asian stocks had their biggest decline in a week, led by financial companies and automakers, on heightened concern the U.S. is headed for a recession and as the dollar neared a three-year low against the yen.
Commodities: Crude oil was little changed after falling in New York in advance of a meeting of the Organization of Petroleum Exporting Countries in Vienna to discuss production targets. Gold rose to a record as a weakening dollar increased the appeal of the precious metal as an alternative investment and the rising cost of raw materials boosted demand for a hedge against inflation.
Currencies: The dollar declined to a three-year low against the yen on speculation Federal Reserve officials will signal that they will keep reducing interest rates to avert a recession.
Source: Bloomberg
Europe: European stocks fell, sending the Dow Jones Stoxx 600 Index to its fourth straight monthly decline, on mounting concern the U.S. economy is slipping into a recession and financial companies will report more writedowns.
Asia: Asian stocks had their biggest decline in a week, led by financial companies and automakers, on heightened concern the U.S. is headed for a recession and as the dollar neared a three-year low against the yen.
Commodities: Crude oil was little changed after falling in New York in advance of a meeting of the Organization of Petroleum Exporting Countries in Vienna to discuss production targets. Gold rose to a record as a weakening dollar increased the appeal of the precious metal as an alternative investment and the rising cost of raw materials boosted demand for a hedge against inflation.
Currencies: The dollar declined to a three-year low against the yen on speculation Federal Reserve officials will signal that they will keep reducing interest rates to avert a recession.
Source: Bloomberg
Thursday, February 28, 2008
US Markets Closing Comments - 27th Feb 2008
Economic Summary
Markets had to juggle weak economic data, another pledge from Fed Chairman
Bernanke to act in a "timely" manner, and news that FNMA and FHLMC's regulator
will remove the agencies' portfolio caps on March 1. In a volatile session,
stocks and Treasury coupon securities ended mixed with small changes. The
dollar hit a new record low against the euro and lost more ground versus the
yen.
New orders for durable goods fell 5.3% in January, following a 4.4% gain in
December (revised from +5.0%). The data were weaker than the consensus call of
-4.0%. Nondefense aircraft orders (-30.5%) were a significant negative
influence, as expected. Excluding transportation, orders were down 1.6%. A
positive aspect of the report was that January nondefense capital goods
shipments ex aircraft, which factor into the business spending component of
GDP, stood an annualized 5.1% above the Q4 average, little changed from the
Q4/Q3 growth rate of 5.0%. While this did not rule out a slowdown in business
spending growth in Q1, it did paint a less dire picture than some of the
regional manufacturing surveys have painted in the past couple of months.
New home sales fell by 2.8% in January to an annualized 588k, below the
consensus call of 600k. January's was the lowest level of sales since February
1995. Net revisions to November and December totalled an inconsequential -3k.
Inventories of new homes rose to 479kin January, and median sales prices are
down some 15% from a year ago. These disappointing sales, supply, and price
data underscored the fact that we have not yet seen a bottom in the housing
market contraction.
Fed Chairman Bernanke presented his semi-annual testimony before House
Financial Services Committee. As he did on February 14 in testimony before the
Senate Banking Committee, Bernanke emphasized that "downside risks to growth
remain" and that the FOMC "will act in a timely manner as needed to support
growth..." In fact, on these points, the Chairman's wording was identical in
both testimonies. Bernanke again made it clear that the FOMC is prepared to
ease more if economic conditions deteriorate or if credit conditions tighten
further. Since we have been seeing further softening in economic activity, we
expect that the FOMC will cut the funds rate by another 50bp to 2.50% at the
March 18 policy meeting.
Growth clearly is the more worrisome variable on the Fed's radar screen than
inflation right now, but Bernanke's text today also suggested that he has
become mildly more concerned over the past couple of weeks about inflation. In
a change from his February 14 text, Bernanke warned today that "upside risks
to the inflation projection are also present..." Moreover, he said the FOMC
sees "slightly greater upside risks to the projections of both overall and
core inflation than we saw last month."
Economic Outlook
Initial unemployment claims for the week ended February 23 will be released on
Thursday at 8:30 (Consensus 350k). Claims in the previous were 349k, in line
with the consensus forecast. The four-week average for claims climbed to 361k,
the highest level since early October 2005 (in the aftermath of Hurricane
Katrina). A claims figure in line with the consensus forecast would lower the
four-week average to about 354k.
Markets had to juggle weak economic data, another pledge from Fed Chairman
Bernanke to act in a "timely" manner, and news that FNMA and FHLMC's regulator
will remove the agencies' portfolio caps on March 1. In a volatile session,
stocks and Treasury coupon securities ended mixed with small changes. The
dollar hit a new record low against the euro and lost more ground versus the
yen.
New orders for durable goods fell 5.3% in January, following a 4.4% gain in
December (revised from +5.0%). The data were weaker than the consensus call of
-4.0%. Nondefense aircraft orders (-30.5%) were a significant negative
influence, as expected. Excluding transportation, orders were down 1.6%. A
positive aspect of the report was that January nondefense capital goods
shipments ex aircraft, which factor into the business spending component of
GDP, stood an annualized 5.1% above the Q4 average, little changed from the
Q4/Q3 growth rate of 5.0%. While this did not rule out a slowdown in business
spending growth in Q1, it did paint a less dire picture than some of the
regional manufacturing surveys have painted in the past couple of months.
New home sales fell by 2.8% in January to an annualized 588k, below the
consensus call of 600k. January's was the lowest level of sales since February
1995. Net revisions to November and December totalled an inconsequential -3k.
Inventories of new homes rose to 479kin January, and median sales prices are
down some 15% from a year ago. These disappointing sales, supply, and price
data underscored the fact that we have not yet seen a bottom in the housing
market contraction.
Fed Chairman Bernanke presented his semi-annual testimony before House
Financial Services Committee. As he did on February 14 in testimony before the
Senate Banking Committee, Bernanke emphasized that "downside risks to growth
remain" and that the FOMC "will act in a timely manner as needed to support
growth..." In fact, on these points, the Chairman's wording was identical in
both testimonies. Bernanke again made it clear that the FOMC is prepared to
ease more if economic conditions deteriorate or if credit conditions tighten
further. Since we have been seeing further softening in economic activity, we
expect that the FOMC will cut the funds rate by another 50bp to 2.50% at the
March 18 policy meeting.
Growth clearly is the more worrisome variable on the Fed's radar screen than
inflation right now, but Bernanke's text today also suggested that he has
become mildly more concerned over the past couple of weeks about inflation. In
a change from his February 14 text, Bernanke warned today that "upside risks
to the inflation projection are also present..." Moreover, he said the FOMC
sees "slightly greater upside risks to the projections of both overall and
core inflation than we saw last month."
Economic Outlook
Initial unemployment claims for the week ended February 23 will be released on
Thursday at 8:30 (Consensus 350k). Claims in the previous were 349k, in line
with the consensus forecast. The four-week average for claims climbed to 361k,
the highest level since early October 2005 (in the aftermath of Hurricane
Katrina). A claims figure in line with the consensus forecast would lower the
four-week average to about 354k.
Financials Daily - 28th Feb 2008
US: Most U.S. stocks fell for the first time in four days as a slump in utility and drugmaker shares overshadowed speculation Federal Reserve Chairman Ben S. Bernanke will cut interest rates to stave off a recession.
Europe: European stocks fell for the first time this week after record oil prices and earnings reports from HBOS Plc and Bouygues SA reignited concern that profits will decline as inflation accelerates.
Asia: Asian stocks rose, sending the region's benchmark to a six-week high, as a rally in commodity prices and profit reports at Standard Chartered Plc and Marui Group Co. stoked optimism earnings will endure a global slowdown.
Commodities: Crude oil was little changed below $100 after a government report showed that U.S. inventories increased for a seventh week as the economy of the world's biggest energy-consuming country slows. Gold futures rose to a record $967.70 an ounce as the dollar fell to the lowest ever against the euro, boosting the appeal of the metal as an alternative investment. Silver extended a rally to the highest since 1980.
Currencies: The dollar traded at a record low below $1.51 per euro after Federal Reserve Chairman Ben S. Bernanke signaled he's ready to lower interest rates again to support the weakening U.S. economy.
Source: Bloomberg
Europe: European stocks fell for the first time this week after record oil prices and earnings reports from HBOS Plc and Bouygues SA reignited concern that profits will decline as inflation accelerates.
Asia: Asian stocks rose, sending the region's benchmark to a six-week high, as a rally in commodity prices and profit reports at Standard Chartered Plc and Marui Group Co. stoked optimism earnings will endure a global slowdown.
Commodities: Crude oil was little changed below $100 after a government report showed that U.S. inventories increased for a seventh week as the economy of the world's biggest energy-consuming country slows. Gold futures rose to a record $967.70 an ounce as the dollar fell to the lowest ever against the euro, boosting the appeal of the metal as an alternative investment. Silver extended a rally to the highest since 1980.
Currencies: The dollar traded at a record low below $1.51 per euro after Federal Reserve Chairman Ben S. Bernanke signaled he's ready to lower interest rates again to support the weakening U.S. economy.
Source: Bloomberg
Wednesday, February 27, 2008
US Markets Closing Comments - 26th Feb 2008
Economic Summary
Evidence of accelerating inflation, falling home prices, and faltering
confidence could not keep equities down today. While closing off their highs,
equities rallied on a $15bn stock buyback plan from IBM and on optimism the
market has adequately priced in the risk of a recession. Treasuries did react
to the poor economic news with a rally of their own. And the dollar fell in FX
trading, hitting a new record intraday low of 1.4970 against the euro.
The January Producer Price Index surged 1.0% (+7.4% YoY), beating market
expectations of a +0.4% rise. Both food and energy prices bounded past
estimates. Even excluding the volatile food and energy components, the index
rose more than anticipated. The core PPI was up 0.4% (+2.3% YoY). Accelerating
inflation will complicate the Fed's monetary policy going forward but should
not keep the FOMC from cutting rates again as soon as its March 18 policy
meeting. We still look for a 50bp cut to 2.5% on the funds rate target.
The 20-city S&P/Case-Shiller home price index fell 2.2% for December (-9.1%
YoY), and the national index was down 8.9% YoY in Q4 (versus -4.6% in Q3).
This is generally considered a superior index of home prices because it
attempts to adjust for the quality of homes. Recent readings are the lowest in
the history of the index. By now it is painfully clear that consumers cannot
count on rising home equity to supplement their incomes and support their
discretionary spending.
February Consumer Confidence plunged 12.3 points to 75.0, a five-year low. The
expectations index, at 57.9 (versus 69.3 in Jan) was the lowest since January
1991, two recessions ago. The present situation index fell to 100.6 from 114.3
in January; it hadn't been this low since November 2004. These data will
certainly help justify further rate cuts from the Fed, even in light of the
stronger inflation data we've been seeing.
The Richmond Fed manufacturing index was not quite as bad as anticipated, at
-5 in February versus -12 in January. Shipments, which had plunged to an index
level of -17 in January, recovered to -4 in February. Employment fell to -5
from January's -2. These data continued to signal contraction in manufacturing
activity.
The OFHEO House Price Index fell 1.3% in Q4, following a 0.3% decline in Q3.
In YoY terms, prices as measured by OFHEO were -0.3% in Q4 (versus +1.9% in
Q3), the first YoY downturn in this index in the current housing market
contraction.
Economic Outlook
January's new orders for durable goods will be reported at 8:30 on Wednesday
(Forecast -6.0%, Consensus -4.0%). Durable goods orders in December surprised
on the upside with a 5.0% jump, but we should see an offset in January.
Reports from Boeing suggest that orders for all civilian aircraft fell by over
30% in January. We look for a decline of 6.0% in overall January durable goods
orders. Excluding transportation goods, new orders probably fell by 1.5% after
their 2.3% rise in December.
Evidence of accelerating inflation, falling home prices, and faltering
confidence could not keep equities down today. While closing off their highs,
equities rallied on a $15bn stock buyback plan from IBM and on optimism the
market has adequately priced in the risk of a recession. Treasuries did react
to the poor economic news with a rally of their own. And the dollar fell in FX
trading, hitting a new record intraday low of 1.4970 against the euro.
The January Producer Price Index surged 1.0% (+7.4% YoY), beating market
expectations of a +0.4% rise. Both food and energy prices bounded past
estimates. Even excluding the volatile food and energy components, the index
rose more than anticipated. The core PPI was up 0.4% (+2.3% YoY). Accelerating
inflation will complicate the Fed's monetary policy going forward but should
not keep the FOMC from cutting rates again as soon as its March 18 policy
meeting. We still look for a 50bp cut to 2.5% on the funds rate target.
The 20-city S&P/Case-Shiller home price index fell 2.2% for December (-9.1%
YoY), and the national index was down 8.9% YoY in Q4 (versus -4.6% in Q3).
This is generally considered a superior index of home prices because it
attempts to adjust for the quality of homes. Recent readings are the lowest in
the history of the index. By now it is painfully clear that consumers cannot
count on rising home equity to supplement their incomes and support their
discretionary spending.
February Consumer Confidence plunged 12.3 points to 75.0, a five-year low. The
expectations index, at 57.9 (versus 69.3 in Jan) was the lowest since January
1991, two recessions ago. The present situation index fell to 100.6 from 114.3
in January; it hadn't been this low since November 2004. These data will
certainly help justify further rate cuts from the Fed, even in light of the
stronger inflation data we've been seeing.
The Richmond Fed manufacturing index was not quite as bad as anticipated, at
-5 in February versus -12 in January. Shipments, which had plunged to an index
level of -17 in January, recovered to -4 in February. Employment fell to -5
from January's -2. These data continued to signal contraction in manufacturing
activity.
The OFHEO House Price Index fell 1.3% in Q4, following a 0.3% decline in Q3.
In YoY terms, prices as measured by OFHEO were -0.3% in Q4 (versus +1.9% in
Q3), the first YoY downturn in this index in the current housing market
contraction.
Economic Outlook
January's new orders for durable goods will be reported at 8:30 on Wednesday
(Forecast -6.0%, Consensus -4.0%). Durable goods orders in December surprised
on the upside with a 5.0% jump, but we should see an offset in January.
Reports from Boeing suggest that orders for all civilian aircraft fell by over
30% in January. We look for a decline of 6.0% in overall January durable goods
orders. Excluding transportation goods, new orders probably fell by 1.5% after
their 2.3% rise in December.
Financials Daily - 27th Feb 2008
US: U.S. stocks gained for a third day as International Business Machines Corp.'s $15 billion buyback, higher retail earnings and rising commodity prices bolstered confidence profits will hold up even as the economy slows.
Europe: European stocks rose for a second day after the biggest bond insurers kept their top debt ratings, increasing speculation that banks will avert another $70 billion in credit losses.
Asia: Asian stocks advanced, led by financial companies, after the world's largest bond insurers retained top credit ratings, easing concern that global economic growth will slow on new credit losses.
Commodities: Crude oil traded near a record in New York as the U.S. dollar fell to an all-time low against the euro, prompting some traders to invest in commodities as a hedge against inflation. Gold futures rose on speculation a weakening dollar and the surging cost of raw materials will boost demand for the precious metal as a hedge against inflation. Silver jumped 3.5 percent.
Currencies: The dollar fell to an all-time low of $1.50 per euro on speculation Federal Reserve Chairman Ben S. Bernanke today will indicate the U.S. central bank is prepared to keep lowering interest rates.
Source: Bloomberg
Europe: European stocks rose for a second day after the biggest bond insurers kept their top debt ratings, increasing speculation that banks will avert another $70 billion in credit losses.
Asia: Asian stocks advanced, led by financial companies, after the world's largest bond insurers retained top credit ratings, easing concern that global economic growth will slow on new credit losses.
Commodities: Crude oil traded near a record in New York as the U.S. dollar fell to an all-time low against the euro, prompting some traders to invest in commodities as a hedge against inflation. Gold futures rose on speculation a weakening dollar and the surging cost of raw materials will boost demand for the precious metal as a hedge against inflation. Silver jumped 3.5 percent.
Currencies: The dollar fell to an all-time low of $1.50 per euro on speculation Federal Reserve Chairman Ben S. Bernanke today will indicate the U.S. central bank is prepared to keep lowering interest rates.
Source: Bloomberg
Tuesday, February 26, 2008
Financials Daily - 26th Feb 2008
US: U.S. stocks staged their biggest rally this month after Standard & Poor's kept AAA debt ratings for the nation's largest bond insurers, easing concern credit losses will extend the worst earnings slump since 2001.
Europe: European stocks gained, led by financial companies, on speculation bond insurers will avoid a cut in their credit ratings and limit further losses related to subprime mortgages.
Asia: Asian stocks rose, led by financial companies and electronics exporters, on speculation U.S. banks will prevent subprime losses from slowing global economic growth.
Commodities: Crude oil was little changed in New York after gaining for the past two sessions on forecasts that fuel consumption will rise because of cold weather in the northern half of the U.S. Gold fell the most in almost two weeks after the U.S. said it would back ``limited'' sales of bullion reserves by the International Monetary Fund, the third-largest holder of the precious metal.
Currencies: The yen fell to a two-month low against the New Zealand dollar after MBIA Inc. said it plans to split its bond insurance business, encouraging traders to buy higher-yielding assets funded with loans in Japan.
Source: Bloomberg
Europe: European stocks gained, led by financial companies, on speculation bond insurers will avoid a cut in their credit ratings and limit further losses related to subprime mortgages.
Asia: Asian stocks rose, led by financial companies and electronics exporters, on speculation U.S. banks will prevent subprime losses from slowing global economic growth.
Commodities: Crude oil was little changed in New York after gaining for the past two sessions on forecasts that fuel consumption will rise because of cold weather in the northern half of the U.S. Gold fell the most in almost two weeks after the U.S. said it would back ``limited'' sales of bullion reserves by the International Monetary Fund, the third-largest holder of the precious metal.
Currencies: The yen fell to a two-month low against the New Zealand dollar after MBIA Inc. said it plans to split its bond insurance business, encouraging traders to buy higher-yielding assets funded with loans in Japan.
Source: Bloomberg
Monday, February 25, 2008
Financials Daily - 25th Feb 2008
US: U.S. stocks rallied in the final 30 minutes of trading, helping the market post its second straight weekly gain, as speculation bond insurer Ambac Financial Group Inc. may be rescued overcame concern bank earnings will falter.
Europe: European stocks fell, trimming their second straight weekly advance, after RWE AG reported its first loss since 2000 and Morgan Stanley cut its profit forecast for Renault SA.
Asia: Asian stocks fell, giving the region's benchmark its seventh weekly drop this year, on renewed concern the U.S. will enter a recession. Toyota Motor Corp., the second-largest carmaker in the U.S. by sales, had its longest losing streak in almost five weeks, and Samsung Electronics Co. declined after a U.S. manufacturing index slumped.
Commodities: Crude oil rose for a second day in New York as Turkey continued its military assault against rebel bases in northern Iraq, OPEC's sixth-largest oil producer. Gold may rise for a second straight week, extending a rally to a record, as higher energy costs boost demand for a hedge against inflation.
Currencies: The dollar traded near a three-week low against the euro on concerns an industry report today will show the housing recession in the U.S. is deepening.
Source: Bloomberg
Europe: European stocks fell, trimming their second straight weekly advance, after RWE AG reported its first loss since 2000 and Morgan Stanley cut its profit forecast for Renault SA.
Asia: Asian stocks fell, giving the region's benchmark its seventh weekly drop this year, on renewed concern the U.S. will enter a recession. Toyota Motor Corp., the second-largest carmaker in the U.S. by sales, had its longest losing streak in almost five weeks, and Samsung Electronics Co. declined after a U.S. manufacturing index slumped.
Commodities: Crude oil rose for a second day in New York as Turkey continued its military assault against rebel bases in northern Iraq, OPEC's sixth-largest oil producer. Gold may rise for a second straight week, extending a rally to a record, as higher energy costs boost demand for a hedge against inflation.
Currencies: The dollar traded near a three-week low against the euro on concerns an industry report today will show the housing recession in the U.S. is deepening.
Source: Bloomberg
Friday, February 22, 2008
Financials Daily - 22nd Feb 2008
US: U.S. stocks fell for the second time this week, led by energy and industrial shares, after a worse-than-forecast manufacturing report and higher stockpiles of oil spurred concern that the economy has fallen into a recession.
Europe: European stocks climbed for the third time this week on higher profits, rising commodities prices and growing optimism that demand from emerging markets will counter an economic slowdown in the U.S.
Asia: Asian stocks climbed the most in a week after earnings from Telstra Corp. and Tabcorp Holdings Ltd. raised optimism the region will overcome a U.S. economic slowdown.
Commodities: Crude oil fell for a second day in New York after an Energy Department report showed that U.S. inventories rose almost twice as much as forecast and refiners slowed processing to perform seasonal maintenance. Gold futures surged to a record $958.40 an ounce as a slumping dollar and soaring commodity costs boosted the appeal of the precious metal as an inflation hedge. Silver rose to the highest since 1980.
Currencies: The dollar headed for a second weekly decline against the euro after a report showed manufacturing in the Philadelphia region contracted this month, bolstering speculation the U.S. is poised for a recession.
Source: Bloomberg
Europe: European stocks climbed for the third time this week on higher profits, rising commodities prices and growing optimism that demand from emerging markets will counter an economic slowdown in the U.S.
Asia: Asian stocks climbed the most in a week after earnings from Telstra Corp. and Tabcorp Holdings Ltd. raised optimism the region will overcome a U.S. economic slowdown.
Commodities: Crude oil fell for a second day in New York after an Energy Department report showed that U.S. inventories rose almost twice as much as forecast and refiners slowed processing to perform seasonal maintenance. Gold futures surged to a record $958.40 an ounce as a slumping dollar and soaring commodity costs boosted the appeal of the precious metal as an inflation hedge. Silver rose to the highest since 1980.
Currencies: The dollar headed for a second weekly decline against the euro after a report showed manufacturing in the Philadelphia region contracted this month, bolstering speculation the U.S. is poised for a recession.
Source: Bloomberg
Thursday, February 21, 2008
Financials Daily - 21st Feb 2008
US: U.S. stocks rose the most in a week, led by technology and energy shares, after Hewlett-Packard Co.'s profit topped analysts' estimates and oil climbed to a record for a second day.
Europe: European stocks fell for the first time in three days on concern expanding losses in credit markets will curb earnings and inflation in the U.S. may prevent central banks from cutting borrowing costs to boost growth.
Asia: Asian stocks fell, sending the region's benchmark to its biggest drop in two weeks, after oil's surge above $100 a barrel dragged down automakers and power generators.
Commodities: Crude oil was little changed near $100 a barrel after rising to a record yesterday on speculation U.S. interest rate cuts will bolster fuel consumption. Gold futures rose to a record $949.20 an ounce after energy costs jumped to the highest ever, boosting the appeal of the precious metal as a hedge against inflation.
Currencies: The yen traded near a three-week low against the euro after a rally in U.S. stocks restored confidence in buying higher-yielding assets funded in Japan.
Source: Bloomberg
Europe: European stocks fell for the first time in three days on concern expanding losses in credit markets will curb earnings and inflation in the U.S. may prevent central banks from cutting borrowing costs to boost growth.
Asia: Asian stocks fell, sending the region's benchmark to its biggest drop in two weeks, after oil's surge above $100 a barrel dragged down automakers and power generators.
Commodities: Crude oil was little changed near $100 a barrel after rising to a record yesterday on speculation U.S. interest rate cuts will bolster fuel consumption. Gold futures rose to a record $949.20 an ounce after energy costs jumped to the highest ever, boosting the appeal of the precious metal as a hedge against inflation.
Currencies: The yen traded near a three-week low against the euro after a rally in U.S. stocks restored confidence in buying higher-yielding assets funded in Japan.
Source: Bloomberg
Wednesday, February 20, 2008
Financials Daily - 20th Feb 2008
US: U.S. stocks fell after oil's surge above $100 a barrel dragged down consumer and technology shares, erasing a 157-point rally in the Dow Jones Industrial Average led by energy producers.
Europe: European stocks rose for the fifth time in six days, led by insurers on takeover speculation and mining companies as copper reached a four-month high.
Asia: Asian stocks rose, sending the region's benchmark to a two-week high, as concern eased that banks will report more subprime-related losses and after higher metals prices boosted natural-resources companies.
Commodities: Crude oil fell in New York after reaching a record $100.10 a barrel yesterday on speculation OPEC will decide to cut production next month. Gold futures rose the most in almost seven weeks on speculation a weaker dollar and higher commodity costs will boost the appeal of the precious metal as an inflation hedge. Silver reached its highest close since 1980.
Currencies: The dollar traded near a two-week low against the euro before minutes from Federal Reserve meetings last month that may show the central bank is willing to lower interest rates further to support the economy.
Source: Bloomberg
Europe: European stocks rose for the fifth time in six days, led by insurers on takeover speculation and mining companies as copper reached a four-month high.
Asia: Asian stocks rose, sending the region's benchmark to a two-week high, as concern eased that banks will report more subprime-related losses and after higher metals prices boosted natural-resources companies.
Commodities: Crude oil fell in New York after reaching a record $100.10 a barrel yesterday on speculation OPEC will decide to cut production next month. Gold futures rose the most in almost seven weeks on speculation a weaker dollar and higher commodity costs will boost the appeal of the precious metal as an inflation hedge. Silver reached its highest close since 1980.
Currencies: The dollar traded near a two-week low against the euro before minutes from Federal Reserve meetings last month that may show the central bank is willing to lower interest rates further to support the economy.
Source: Bloomberg
Saturday, February 16, 2008
Financials Daily - 15th Feb 2008
US: U.S. stocks fell for the first time this week after Federal Reserve Chairman Ben S. Bernanke warned that a scarcity of credit will restrain economic growth and analysts said Intel Corp. may be hurt by slower computer sales
Europe: European stocks rose, led by Clariant AG and Cap Gemini SA, after their earnings beat analyst estimates and Japan's economy grew faster than forecast.
Asia: Asian stocks rose the most in three weeks, led by banks and technology companies, as faster Japanese economic growth and better-than-expected U.S. retail sales eased concern the two biggest economies are sliding into a recession.
Commodities: Crude oil rose to a one-month high as economic indicators from Asia and the U.S. allayed concern that a global recession is imminent. Gold futures rose after Federal Reserve Chairman Ben S. Bernanke signaled more U.S. interest-rate cuts this year, boosting the appeal of the precious metal as an alternative investment to the dollar.
Currencies: The dollar headed for the biggest weekly loss since December against the euro after U.S. Federal Reserve Chairman Ben S. Bernanke signaled the bank may cut interest rates further to avert a recession.
Source: Bloomberg
Europe: European stocks rose, led by Clariant AG and Cap Gemini SA, after their earnings beat analyst estimates and Japan's economy grew faster than forecast.
Asia: Asian stocks rose the most in three weeks, led by banks and technology companies, as faster Japanese economic growth and better-than-expected U.S. retail sales eased concern the two biggest economies are sliding into a recession.
Commodities: Crude oil rose to a one-month high as economic indicators from Asia and the U.S. allayed concern that a global recession is imminent. Gold futures rose after Federal Reserve Chairman Ben S. Bernanke signaled more U.S. interest-rate cuts this year, boosting the appeal of the precious metal as an alternative investment to the dollar.
Currencies: The dollar headed for the biggest weekly loss since December against the euro after U.S. Federal Reserve Chairman Ben S. Bernanke signaled the bank may cut interest rates further to avert a recession.
Source: Bloomberg
Thursday, February 14, 2008
US Markets Closing Comments - 13th Feb 2008
Economic Summary:
For the first time in recent memory, the financial markets reacted to
stronger-than expected economic data. An unexpected 0.3% rise in retail sales
kicked off an equity rally. Also, a forecast by Applied Materials of stronger
orders helped boost tech stocks. Treasuries were mixed, with the long end
selling off on the retail sales data and the equity rally. The dollar edged
higher versus the euro and made large gains against the yen
Retail sales rose 0.3% in January, a stronger result than the 0.3% decline
expected by the consensus. Rising prices of such inelastic goods as food and
gasoline led to higher nominal sales of those goods, +0.6% and +2.0%,
respectively. Excluding gasoline sales, retail sales would have been up just
+0.1%. Sales of motor vehicles (+0.6%) were stronger than anticipated, given
the weak unit sales in January. Despite the strongerthan- consensus headline
gain, retail sales in real terms are still in a slowing trend and are
consistent with our call for a significant slowdown in real personal
consumption in Q1.
Business inventories rose 0.6% in December, thanks mainly to a
petroleum-priceinduced 1.1% jump in wholesale inventories. Retail inventories
were reported down 0.1% in December, following a 0.3% decline in November.
Factoring in the data recently reported for Q4, including today's retail sales
and inventory figures, it looks like the "preliminary" Q4 GDP report (due out
on Feb 28) will show a +0.2% growth rate, downwardly revised from the
"advance" report of +0.6%. We caution, however, that a big missing piece of
this puzzle, December international trade, is due out tomorrow. Trade has the
potential of altering the picture significantly.
Economic Outlook:
Initial unemployment claims for the week ended February 9 will be released on
Thursday at 8:30 (Consensus 347k). Claims in the previous week fell by a
less-than expected 22k to 356k. The latest two-week average of 367k has not
been that high since the spike in claims that occurred in 2005 in the
aftermath Hurricane Katrina. These data tentatively suggest that the labor
market may have taken a turn for the worse.
The December Trade Balance will also be reported at 8:30 (Forecast -$62.2bn,
Consensus -$61.5bn). The cost of imported oil dropped slightly in December.
This should limit the increase in the nominal cost of imports. Exports of
agricultural products are benefiting from price increases. Meanwhile,
non-agricultural exports are getting a boost from a lower dollar and have been
increasing at close to a 10% rate for most of 2007. For December, we expect an
improvement in the trade balance of about $1bn, bringing the deficit down to
$62.2bn.
Federal Reserve Chairman Bernanke will be testifying on the economy before the
Senate Banking Committee at 10:00 on Thursday. He will likely make the case
that economic activity has slowed significantly, due in part to the housing
market contraction and to tighter credit conditions in general. But he is
likely to hold out hope that the Fed's 225bp in easing since September, and
the tax rebates starting in May, will serve to keep the economy out of
recession.
For the first time in recent memory, the financial markets reacted to
stronger-than expected economic data. An unexpected 0.3% rise in retail sales
kicked off an equity rally. Also, a forecast by Applied Materials of stronger
orders helped boost tech stocks. Treasuries were mixed, with the long end
selling off on the retail sales data and the equity rally. The dollar edged
higher versus the euro and made large gains against the yen
Retail sales rose 0.3% in January, a stronger result than the 0.3% decline
expected by the consensus. Rising prices of such inelastic goods as food and
gasoline led to higher nominal sales of those goods, +0.6% and +2.0%,
respectively. Excluding gasoline sales, retail sales would have been up just
+0.1%. Sales of motor vehicles (+0.6%) were stronger than anticipated, given
the weak unit sales in January. Despite the strongerthan- consensus headline
gain, retail sales in real terms are still in a slowing trend and are
consistent with our call for a significant slowdown in real personal
consumption in Q1.
Business inventories rose 0.6% in December, thanks mainly to a
petroleum-priceinduced 1.1% jump in wholesale inventories. Retail inventories
were reported down 0.1% in December, following a 0.3% decline in November.
Factoring in the data recently reported for Q4, including today's retail sales
and inventory figures, it looks like the "preliminary" Q4 GDP report (due out
on Feb 28) will show a +0.2% growth rate, downwardly revised from the
"advance" report of +0.6%. We caution, however, that a big missing piece of
this puzzle, December international trade, is due out tomorrow. Trade has the
potential of altering the picture significantly.
Economic Outlook:
Initial unemployment claims for the week ended February 9 will be released on
Thursday at 8:30 (Consensus 347k). Claims in the previous week fell by a
less-than expected 22k to 356k. The latest two-week average of 367k has not
been that high since the spike in claims that occurred in 2005 in the
aftermath Hurricane Katrina. These data tentatively suggest that the labor
market may have taken a turn for the worse.
The December Trade Balance will also be reported at 8:30 (Forecast -$62.2bn,
Consensus -$61.5bn). The cost of imported oil dropped slightly in December.
This should limit the increase in the nominal cost of imports. Exports of
agricultural products are benefiting from price increases. Meanwhile,
non-agricultural exports are getting a boost from a lower dollar and have been
increasing at close to a 10% rate for most of 2007. For December, we expect an
improvement in the trade balance of about $1bn, bringing the deficit down to
$62.2bn.
Federal Reserve Chairman Bernanke will be testifying on the economy before the
Senate Banking Committee at 10:00 on Thursday. He will likely make the case
that economic activity has slowed significantly, due in part to the housing
market contraction and to tighter credit conditions in general. But he is
likely to hold out hope that the Fed's 225bp in easing since September, and
the tax rebates starting in May, will serve to keep the economy out of
recession.
US Markets Closing Comments - 12th Feb 2008
Economic Summary:
The equity markets were cheered by news that Warren Buffett's firm, Berkshire
Hathaway, offered to reinsure roughly $800bn of municipal bonds. Also, a plan
announced by Treasury Secretary Paulson to prevent (or at least forestall)
home foreclosures didn't hurt. Treasuries fell on the same news, and the
dollar was mixed.
The January Treasury budget balance was reported at +$17.8bn versus +$38.2bn
in January 2007. A fall off in corporate profits late in 2007 helped to lower
the surplus compared to a year ago. The budget balance for fiscal 2008 to date
(October through January) is -$87.7bn versus -$42.2bn for the same four months
in fiscal 2007. The federal government posted a deficit of $163bn in fiscal
2007. Factoring in the upcoming fiscal stimulus package, we expect the deficit
to balloon to $381bn this fiscal year.
Economic Outlook:
Retail sales for January will be reported at 8:30 on Wednesday (Forecast
+0.2%/+0.5%, Consensus -0.3%/+0.2%). Retail sales may be positive in January
but mainly because of rising prices of such inelastic goods as food and
gasoline. Sales of autos and homerelated goods like furniture and building
materials probably declined in the month. We put overall retail sales up 0.2%
in January and expect a 0.5% rise excluding autos. Our forecast incorporates a
1.0% decline in auto sales and a 2.5% increase in gasoline sales. Excluding gas
sales alone, we put retail sales down 0.1% in January.
December business inventories are due out at 10:00 (Forecast +0.4%, Consensus
+0.5%). Business inventories is composed of factory inventories, wholesale
inventories, and retail inventories. Factory inventories were up 0.8% for
December, and wholesale inventories jumped 1.1%, boosted by higher prices --
particularly higher prices for petroleum goods. This larger-than-expected
wholesale inventories figure suggests that our forecast of +0.4% for December
business inventories may be too low.
Market Summary:
The Fed reported that Monday's $30bn 28-day TAF auction had a stop-out rate of
3.01%, 15bp above the minimum bid-rate of 2.86%. The bid-to-cover was 1.95,
above the 1.55 average of the two previous auctions. There were 66 bidders
this time around, above the 54 average of the two January auctions. One
possible reason for the more aggressive bidding in yesterday's auction was the
fact $30bn in TAF loans were maturing from 28- days ago. Previous TAF auctions
had provided $10-to-$20bn of net new reserves.
The equity markets were cheered by news that Warren Buffett's firm, Berkshire
Hathaway, offered to reinsure roughly $800bn of municipal bonds. Also, a plan
announced by Treasury Secretary Paulson to prevent (or at least forestall)
home foreclosures didn't hurt. Treasuries fell on the same news, and the
dollar was mixed.
The January Treasury budget balance was reported at +$17.8bn versus +$38.2bn
in January 2007. A fall off in corporate profits late in 2007 helped to lower
the surplus compared to a year ago. The budget balance for fiscal 2008 to date
(October through January) is -$87.7bn versus -$42.2bn for the same four months
in fiscal 2007. The federal government posted a deficit of $163bn in fiscal
2007. Factoring in the upcoming fiscal stimulus package, we expect the deficit
to balloon to $381bn this fiscal year.
Economic Outlook:
Retail sales for January will be reported at 8:30 on Wednesday (Forecast
+0.2%/+0.5%, Consensus -0.3%/+0.2%). Retail sales may be positive in January
but mainly because of rising prices of such inelastic goods as food and
gasoline. Sales of autos and homerelated goods like furniture and building
materials probably declined in the month. We put overall retail sales up 0.2%
in January and expect a 0.5% rise excluding autos. Our forecast incorporates a
1.0% decline in auto sales and a 2.5% increase in gasoline sales. Excluding gas
sales alone, we put retail sales down 0.1% in January.
December business inventories are due out at 10:00 (Forecast +0.4%, Consensus
+0.5%). Business inventories is composed of factory inventories, wholesale
inventories, and retail inventories. Factory inventories were up 0.8% for
December, and wholesale inventories jumped 1.1%, boosted by higher prices --
particularly higher prices for petroleum goods. This larger-than-expected
wholesale inventories figure suggests that our forecast of +0.4% for December
business inventories may be too low.
Market Summary:
The Fed reported that Monday's $30bn 28-day TAF auction had a stop-out rate of
3.01%, 15bp above the minimum bid-rate of 2.86%. The bid-to-cover was 1.95,
above the 1.55 average of the two previous auctions. There were 66 bidders
this time around, above the 54 average of the two January auctions. One
possible reason for the more aggressive bidding in yesterday's auction was the
fact $30bn in TAF loans were maturing from 28- days ago. Previous TAF auctions
had provided $10-to-$20bn of net new reserves.
Financials Daily - 14th Feb 2008
US: U.S. stocks rose for a third day, the longest stretch of gains in 2008, after increased demand at Applied Materials Inc. spurred a technology rally and energy shares advanced on higher gas-station sales.
Europe: European stocks erased their earlier gains. ABB Ltd., the world's largest maker of power networks, and software maker Dassault Systemes SA dropped.
Asia: Asian stocks rose for a second day, led by commodity producers and shipping lines, on speculation demand for fuel and metals will outstrip supply after recent storms in China toppled power lines and cut output.
Commodities: Crude oil rose after government reports showed that U.S. retail sales unexpectedly climbed and gasoline demand increased. Gold, little changed in New York, may decline on speculation a rally in equities will reduce the appeal of the precious metal as alternative investment. Silver gained.
Currencies: The pound climbed to a two-week high against the euro after the Bank of England raised its inflation forecast, prompting traders to pare bets on interest-rate cuts.
Source: Bloomberg
Europe: European stocks erased their earlier gains. ABB Ltd., the world's largest maker of power networks, and software maker Dassault Systemes SA dropped.
Asia: Asian stocks rose for a second day, led by commodity producers and shipping lines, on speculation demand for fuel and metals will outstrip supply after recent storms in China toppled power lines and cut output.
Commodities: Crude oil rose after government reports showed that U.S. retail sales unexpectedly climbed and gasoline demand increased. Gold, little changed in New York, may decline on speculation a rally in equities will reduce the appeal of the precious metal as alternative investment. Silver gained.
Currencies: The pound climbed to a two-week high against the euro after the Bank of England raised its inflation forecast, prompting traders to pare bets on interest-rate cuts.
Source: Bloomberg
Wednesday, February 13, 2008
Financials Daily - 13th Feb 2008
US: U.S. stocks rose for a second day, led by financial shares, on expectations Warren Buffett, the world's No. 1 investor, will help stem credit losses by offering to shore up the municipal bond market.
Europe: European stocks advanced the most in two weeks after Warren Buffett offered to assume liabilities of some bond insurers and investors speculated a plan to help U.S. borrowers will shore up the economy.
Asia: Asian stocks advanced for the first time in three days, led by BHP Billiton Ltd. and Inpex Holdings Inc. after oil and metals prices climbed.
Commodities: Crude oil was little changed in New York after falling yesterday for the first time in four days on forecasts that a government report will show U.S. stockpiles increased for a fifth week. Gold futures fell the most in a week as a rally in equities reduced the appeal of the precious metal as an alternative investment. Silver also declined.
Currencies: The dollar may fall for a fourth day against the euro on speculation a government report will show U.S. retail sales dropped in January, bolstering speculation the economy is headed for a recession.
Source: Bloomberg
Europe: European stocks advanced the most in two weeks after Warren Buffett offered to assume liabilities of some bond insurers and investors speculated a plan to help U.S. borrowers will shore up the economy.
Asia: Asian stocks advanced for the first time in three days, led by BHP Billiton Ltd. and Inpex Holdings Inc. after oil and metals prices climbed.
Commodities: Crude oil was little changed in New York after falling yesterday for the first time in four days on forecasts that a government report will show U.S. stockpiles increased for a fifth week. Gold futures fell the most in a week as a rally in equities reduced the appeal of the precious metal as an alternative investment. Silver also declined.
Currencies: The dollar may fall for a fourth day against the euro on speculation a government report will show U.S. retail sales dropped in January, bolstering speculation the economy is headed for a recession.
Source: Bloomberg
Tuesday, February 12, 2008
Financials Daily - 12th Feb 2008
US: U.S. stocks rose as a rally in oil prices boosted energy shares, outweighing concern that financial companies face more writedowns after American International Group Inc. said it overstated the value of some assets.
Europe: European stocks fell after the Group of Seven said financial-market turmoil will hurt the economy and auditors found a ``material weakness'' in how American International Group Inc. values its credit-default swap portfolio.
Asia: Asian stocks fell, led by Commonwealth Bank of Australia and Kookmin Bank, after the Group of Seven policy makers said financial-market turmoil will sap global economic growth.
Commodities: Crude oil rose to a one-month high after Valero Energy Corp. shut its Delaware refinery because of a storm-related power failure yesterday and cold weather moved across the northern U.S. Gold futures rose to a one-week high after energy costs climbed, boosting the appeal of the precious metal as a hedge against inflation. Silver extended a rally to the highest since 1980.
Currencies: The yen rose the most this month against the dollar after the Group of Seven nations warned of further financial-market turmoil, spurring investors to reduce holdings of higher-yielding assets bought with loans from Japan.
Source: Bloomberg
Europe: European stocks fell after the Group of Seven said financial-market turmoil will hurt the economy and auditors found a ``material weakness'' in how American International Group Inc. values its credit-default swap portfolio.
Asia: Asian stocks fell, led by Commonwealth Bank of Australia and Kookmin Bank, after the Group of Seven policy makers said financial-market turmoil will sap global economic growth.
Commodities: Crude oil rose to a one-month high after Valero Energy Corp. shut its Delaware refinery because of a storm-related power failure yesterday and cold weather moved across the northern U.S. Gold futures rose to a one-week high after energy costs climbed, boosting the appeal of the precious metal as a hedge against inflation. Silver extended a rally to the highest since 1980.
Currencies: The yen rose the most this month against the dollar after the Group of Seven nations warned of further financial-market turmoil, spurring investors to reduce holdings of higher-yielding assets bought with loans from Japan.
Source: Bloomberg
Wednesday, February 6, 2008
Financials Daily - 6th Feb 2008
US: U.S. stocks tumbled, pushing the Standard & Poor's 500 Index down the most in 11 months, after the first contraction in service industries since 2002 reinforced concern the economy is in a recession.
Europe: European stocks fell the most in two weeks after a service-industries report strengthened speculation the U.S. is in a recession and National Semiconductor Corp. and Heidelberger Druckmaschinen AG cut their forecasts.
Asia: Asian stocks fell for the first time in four days as lower profit forecasts from Yamaha Motor Corp. and Olympus Corp. and downgrades of Posco and South Korean shipbuilders fueled concern regional earnings growth will slow.
Commodities: Crude oil fell more than $1 a barrel after a report showed that U.S. service industries contracted in January, a sign of a slowing economy and reduced energy demand. Gold futures fell to the lowest in more than a week after the dollar rose against the euro, eroding the appeal of the precious metal as an alternative investment.
Currencies: The euro declined the most against the dollar in almost two months after Europe's service industries weakened and raised concern that Jean-Claude Trichet's reluctance to cut interest rates will hamper growth.
Europe: European stocks fell the most in two weeks after a service-industries report strengthened speculation the U.S. is in a recession and National Semiconductor Corp. and Heidelberger Druckmaschinen AG cut their forecasts.
Asia: Asian stocks fell for the first time in four days as lower profit forecasts from Yamaha Motor Corp. and Olympus Corp. and downgrades of Posco and South Korean shipbuilders fueled concern regional earnings growth will slow.
Commodities: Crude oil fell more than $1 a barrel after a report showed that U.S. service industries contracted in January, a sign of a slowing economy and reduced energy demand. Gold futures fell to the lowest in more than a week after the dollar rose against the euro, eroding the appeal of the precious metal as an alternative investment.
Currencies: The euro declined the most against the dollar in almost two months after Europe's service industries weakened and raised concern that Jean-Claude Trichet's reluctance to cut interest rates will hamper growth.
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