|
|
| 01.10 19:56 |
RBSGC on TARP
Most believe there is forward motion on TARP and US Senate will take it
up late tonight. RBSGC points out 2 changes in the bill: proposal to
raise the FDIC deposit insurance limit from $100,000 to $250,000 for 1
year pd, and business tax relief.
|
| 01.10 19:44 |
Sen Reid said is confident the bailout will get a good reception - 'we have to do something.' |
| 01.10 19:42 |
JPMorgan: S&P 500 tech
S&P 500 Cash from JPMorgan's Mike Krauss - "Bullish momentum
divergences still in place, and DSI saw 8% ulls. Could see more short
term volatility, but both suggest a bottom should be close. Short-Term
resists: 1180 (key). Medium-Term resists: 221, 1265 Sept 18 high, 1274
Sept 8 H, 1313 Aug 11 H. Sustained breaks below 1100 would change our
bullish view."
|
| 01.10 19:25 |
Dow -82.51 at 10771.46, Nasdaq -31.02 at 2061.25, S&P -12.50 at 1153.86
General Electric (GE 24.72, -0.76) resumed trading following news of
the $12 billion common stock offering and $3 billion preferred stock
sale to Berkshire Hathaway (BRK.A 131,900, +1,300). GE shares are down
3.0%, which is a substantial improvement from the session low when
shares were down 9.8%. Note that BRK last traded at 1:40 PM ET.
In other news, General Motors (GM 9.49, +0.05) reported that North
American sales on seasonal adjusted rate fell 16%, which was better
than the expected decline of 26%.
|
| 01.10 19:24 |
JPM: "the global economy is sliding into recession"
"The global economy is sliding into recession" and is making downward
adjustments to growth forecasts, est growth close to zero in the coming
two quarters. They are now calling for -50bp Fed ease on Oct 29 and say
"financial stress (is) expected to linger" so a further 50bp of easing
сould come, bringing the Fed funds rate to 1% by early next year. BOE,
ECB will have to ease even more, they say.
|
| 01.10 19:07 |
Dow -11.87 at 10838.79, Nasdaq -12.48 at 2079.40, S&P -3.38 at 1162.98
The Dow Jones Industrial Average briefly broke into positive
ground, but is now trading with a slight loss. The S&P 500 and the
Nasdaq Composite continue to trail, though each is well off session
lows.
At their worst levels, each of the major indices was down in excess of 2%.
Financial stocks provided the impetus behind the latest advance. The
sector was up 2.2%, but those gains have been pared. It is now up
1.7%, still more than any other sector.
Financials remain one of the worst performing sectors in the S&P
500, down 30% this year. It is one of the seven economic sectors down
at least 20% year-to-date.
|
| 01.10 18:17 |
HFE on ISM
Economist Ian Shepherdson at HFE says a 43.5 mfg ISM is "into recession
territory," and its lowest level since Oct 2001. "The index was
depressed by big declines in all the key numbers except delivery times"
and he says this is "grim."
|
| 01.10 18:02 |
Dow -66.34 at 10785.43, Nasdaq -25.92 at 2066.37, S&P -10.55 at 1155.88
The S&P 500 and Dow climb to their best levels of the session and
then run into some resistance. The recovery effort was broad-based,
led by financials (+1.1%).
Senator Jon Kyl of Arizona said on CNBC that the Senate's bill is a
pretty strong package, and the market sell-off makes the case for the
bill more compelling.
Ford (F 4.52, -0.68) reported a sharper-than-expected drop in September
North American auto sales. Specifically, sales fell 35%
year-over-year, which was larger than the expected decline of 22%.
September was the lowest sales month for Ford this year.
Yesterday, President Bush signed a bill into law that gave U.S.
automakers a $25 billion low interest loan, although who gets loans
will not be determined until the Energy Department writes the
regulations, according to The Wall Street Journal. The loan is meant to
help U.S. automakers adjust to the recently raised fuel efficiency
requirements.
|
| 01.10 17:51 |
Ford sales tumble 34% in September |
| 01.10 17:50 |
American focus:
The dollar advanced against the euro for a third day as demand for
funding in the U.S. currency increased, reflecting banks' reluctance to
lend to each other amid a global credit crunch.
Foreign banks are paying near the highest premiums in at least a decade
to borrow in dollars in the swaps market even after the Federal Reserve
increased the amount of funds available to other central banks this
week to $620 billion from $330 billion. The U.S. Senate set a vote for
tonight on a $700 billion financial-rescue plan.
``Markets need dollars,'' said Matthew Kassel, director of proprietary
trading at ING Financial Markets LLC in New York. ``They need funding,
and they buy dollars in the spot market.''

Britain's pound declined to the lowest level against the dollar in
almost three weeks after an industry report showed U.K. manufacturing
contracted last month at its fastest pace in 16 years. Sterling fell as
much as 0.8 percent to $1.7655, the lowest level since Sept. 12.
Against the euro, the pound decreased 0.2 percent to 79.29 pence.
The London interbank offered rate, or Libor, that banks charge each
other for one-month dollar loans rose to the highest level since
January, the British Bankers' Association said. The overnight dollar
Libor slid from yesterday's record of 6.88 percent after funding
constraints tied to the end of the third quarter passed. The Libor-OIS
spread, a gauge of cash scarcity, held near a record.
``Because the money market is not working, you know that non-U.S. banks
have a huge dollar funding position globally,'' said Hans Guenter
Redeker, the London-based global head of currency strategy at BNP
Paribas SA, France's biggest bank. ``As they're forced to cut balance
sheets, they are buying dollars to pay back loans.''
The dollar fell against the yen as the Institute for Supply
Management's factory index dropped last month to 43.5, the lowest since
October 2001, from 49.9 in August, the Tempe, Arizona-based group
reported today. A reading of 50 is the dividing line between expansion
and contraction.
The U.S. Senate agreed to vote on the rescue legislation along with the
measure temporarily raising the limit on federal deposit insurance to
$250,000 from $100,000. That increase was proposed by Republicans
critical of the plan authorizing Treasury Secretary Henry Paulson to
buy troubled debt from lenders, which was rejected by the House on
Sept. 29.
The euro's drop versus the dollar came a day before a meeting of the
European Central Bank at which policy makers led by Jean-Claude Trichet
are forecast to keep the main refinancing rate at 4.25 percent.
``I don't think the euro can get a lot of traction out of Trichet
tomorrow,'' said Jeremy Stretch, a strategist in London at Rabobank
International, the third-largest Dutch bank. ``If he is seen to be
hawkish, the euro will fall, and if he is seen to open the gates, I
think the euro will slide on that basis.''
|
| 01.10 17:42 |
HSBC: mfg ISM was ugly
HSBC economist Ryan Wang says mfg ISM was ugly and "suggests economic
caution is spreading beyond financial markets into the broader economy.
|
| 01.10 17:06 |
Dow -115.41 at 10735.89, Nasdaq -32.97 at 2059.38, S&P -15.76 at 1150.60 |
| 01.10 16:58 |
Insight Economics on US construction
Economist Steve Wood of Insight Economics says flat Aug construction
and lower revisions to Jun-Jul reflect erratic nonresidential. He says
weakness is expected ahead as public construction falls.
|
| 01.10 16:25 |
RDQ Economics: Fed to cut the funds rate by 50 basis points
ISM "screams that the economy is in recession" and is the latest in
data that "point to a arked weakening in economic activity in August
and September and adds to the case that the Fed will cut the funds rate
by 50 basis points at the October 29th FOMC meeting."
|
| 01.10 16:13 |
Dow -183.35 at 10670.10, Nasdaq -39.40 at 2052.48, S&P -22.29 at 1144.07
Stocks are trading near session lows that were reached in the past half
hour. Weakness is broad-based -- within the S&P 500, 400 stocks are
posting a loss.
There is not one energy (-4.7%) or industrial (-4.2%) stock posting a
gain. The sectors have a heavy influence on the S&P 500, with a
combined weighting of roughly 25%.
Crude prices extended their decline on the larger than expected
increase in inventory levels. Oil futures are down 3.8% to $96.85 per
barrel, gasoline futures are down 5.0% to $2.33 per gallon.
Airlines are benefiting from the drop in crude prices, with the Amex
Airline Index climbing 5.1%. Northwest Airlines (NWA 9.97, +0.94) can
be profitable with oil prices at $100 per barrel, according to its CEO,
Reuters reported. The merger between Northwest and Delta Airlines (DAL
8.28. +0.83) was approved by shareholders of both companies on Sept.
25, and is expected to close later this year.
|
| 01.10 15:44 |
Newedge says ISM was dismal
"With today's figures, we see increasing risk of a rate cut by the
Fed at the FOMC meeting at the end of the month. We expect a 50bp rate
cut."
|
| 01.10 15:36 |
US EIA oil data for wk Sep 26:
"U.S. commercial crude oil inventories (excluding those in the
Strategic Petroleum Reserve) increased by 4.3 million barrels from the
previous eek. At 294.5 million barrels, U.S. crude oil inventories are
in the lower half of the average range for this time of year.
|
| 01.10 15:27 |
Dow -173.55 at 10679.74, Nasdaq -28.88 at 2062.31, S&P -20.92 at 1145.37
Stocks extend their decline on news that manufacturing contracted by a
much larger than expected amount in September, according to a national
survey.
Just reported, the ISM Manufacturing Index fell 6.4 to 43.5 (consensus
49.5). A reading below 50 is intended to reflect contraction in
manufacturing. ISM prices paid, which includes energy and food, but
excludes crude oil, fell a sharper-than-expected 23.5 to 53.5
(consensus 73).
Separatedly, August construction spending was unchanged
month-over-month, which was better than the expected decline of 0.5%.
On average, construction spending has declined 0.3% each month in 2008.
General Electric (GE 23.32, -2.19) is the main laggard within the
S&P 500. The stock is getting hammered on no specific news item,
although there is concern that the cost to insure GE Capital debt for
five years is at 626 basis points, according to Reuters. The cost to
protect GE Capital debt traded between 10 and 15 basis points in 2006.
|
| 01.10 15:08 |
US: Sept mfg ISM data show Prices Paid at 53.5, New orders 38.8, Employment 41.8. |
| 01.10 15:00 |
US: Sept mfg ISM 43.5 vs 49.9. |
| 01.10 15:00 |
US : Aug construction 0.0% |
| 01.10 14:57 |
Dow -128.12 at 10726.09, Nasdaq -22.11 at 2069.77, S&P -16.70 at 1149.36 |
| 01.10 14:24 |
Before the bell: Investors await Senate vote on tweaked $700B bailout bill.
Stocks were poised to fall Wednesday as the Senate prepared to vote on a tweaked version of the $700 billion bailout bill.
S&P futures vs fair value: -10.90. Nasdaq futures vs fair value: -13.80. Nasdaq futures fall to session lows.
 
The Senate version of the bill includes new provisions, such as raising
the Federal Deposit Insurance Corp. cap protecting deposits to $250,000
from $100,000. The provisions will be added to an existing revenue bill
that the House also rejected Monday, according to Democratic leadership
aides.
As another sign of the economic crisis, the Mortgage Bankers
Association's report showed a 23% plunge in mortgage applications in
the week ended Sept. 26.
Automatic Data Processing, Inc. released its monthly employment report,
showing a decline of 8,000 jobs in September, from the prior month. In
August, the economy lost 37,000 jobs, ADP said.
At 1400GMT, the Commerce Department will release its August measurement
of construction spending. Economists surveyed by Briefing.com project a
decline of 0.4%, compared to a steeper decline of 0.6% the prior month.
Also at 1400GMT, the Institute for Supply Management - a purchasing
managers' group - will release its September index of manufacturing
activity. Economists surveyed by Briefing.com project a reading of
50.1, just above the 50 mark that denotes economic expansion and the
49.9 reading in August.
Crude oil prices are down 1.3% to $99.33 per barrel ahead of the
government's weekly energy inventory report at 1435GMT. Gold is down
0.5% and the dollar is nearly flat.
The Nikkei closed higher, while European markets were mixed. The dollar
edged up versus the euro, the British pound and the yen. Oil prices
hovered around $100 a barrel, dipping $1.09 to $99.55 a barrel.
|
| 01.10 14:00 |
GBP/USD eased further
Cable is easing under earlier support level at $1.7730, moves toward
$1.7720 at writing. Next band of demand seen placed between $1.7710/00,
traders have reported. A break below the figure to open a deeper move
toward $1.7680 ahead of $1.7650. Offers remain in place between
$1.7775/80.
|
| 01.10 13:39 |
HFE on payrolls
"The official payroll numbers have tended to be rather weaker than
ADP (-8k); the spread is typically about 60K, suggesting we should look
for headline payrolls closer to -70K than our -100K forecast."
|
| 01.10 13:33 |
European session [M]
The dollar fell from near a two-week high against the euro on
speculation the U.S. economy will enter a recession regardless of
whether Congress approves the Bush administration's $700 billion
bank-bailout proposals.
The euro rebounded after posting its biggest drop in seven years
against the U.S. currency yesterday as Senate Democrats and Republicans
agreed to vote today on the rescue plan. The British pound declined
against the euro after a report showed U.K. manufacturing contracted at
its fastest pace in 16 years.
Senate leaders vowed yesterday to revive a bill to buy distressed
assets from banks. The legislation was rejected two days ago by the
House of Representatives. The measures would give Treasury Secretary
Henry Paulson broad authority to buy troubled assets from financial
companies. Senators plan to include a provision that would raise the
limit on federal insurance for bank deposits to $250,000 from $100,000,
a move demanded by some of the rescue plan's critics.
The euro's gains came a day before a meeting of the European Central
Bank at which policy makers led by Jean-Claude Trichet will probably
keep interest rates at 4.25 percent.
The pound declined versus the euro after Reuters reported the Chartered
Institute of Purchasing and Supply's index of manufacturing fell to 41
in September, from 45.1 in August, the lowest since January 1992.
Economists predicted 45. The reading has held below 50, signaling
contraction, for five months.
The yen fell against all 16 most actively traded currencies after the
Bank of Japan's quarterly Tankan survey showed large manufacturers
turned pessimistic about their prospects in September for the first
time in five years. The Japanese currency weakened to 150.07 per euro,
from 149.56 yesterday.
EUR/USD having established session high on $1,4163, has
continued оставать in the top borders channel $1,4065-$ 1,4145. Offers
$1.4185/1.4200, $1.4220/25, $1.4240/50. Bids $1.4085/75.
GBP/USD has been limited by frameworks $1,7780-$ 1,7875.
USD/JPY having established sessional minima in the field of Y105,60, has raised above level Y106,00.
US data should sees at 1215GMT by the ADP National Employment Report for September.
Further US data at 140GMT sees construction spending for September and
the ISM manufacturing index for September as well as the help-wanted
online index for September. The ISM manufacturing index is forecast to
fall to a reading of 49.0 in September. Construction spending is
expected to fall 0.3% in August, pulled down by the continued cuts in
private residential building. Data also sees the weekly crude oil
stocks data at 1435GMT.
|
| 01.10 13:16 |
US: ADP pvt employment -8k in Sept. |
| 01.10 12:42 |
EUROPEAN STOCKS: Wires say HBOS shares surge 24% on talk that the Lloyds deal will proceed, citing a source who says "top shareholder supports deal". |
| 01.10 12:15 |
USA MBA Mortgage Applications (Sep 26) -23.0% |
| 01.10 11:25 |
European focus: Dollar declines from highest level in two weeks against Euro [M]
The dollar fell from near a two-week high against the euro on
speculation the U.S. economy will enter a recession regardless of
whether Congress approves the Bush administration's $700 billion
bank-bailout proposals.
The euro rebounded after posting its biggest drop in seven years
against the U.S. currency yesterday as Senate Democrats and Republicans
agreed to vote today on the rescue plan. The British pound declined
against the euro after a report showed U.K. manufacturing contracted at
its fastest pace in 16 years.
``We don't think that what we've seen over the last month is the
beginning of a sustained dollar rally,'' said Martin McMahon, a
Zurich-based currency strategist for Credit Suisse Group. ``There are
still lots of problems for the dollar.''
Senate leaders vowed yesterday to revive a bill to buy distressed
assets from banks. The legislation was rejected two days ago by the
House of Representatives. The measures would give Treasury Secretary
Henry Paulson broad authority to buy troubled assets from financial
companies. Senators plan to include a provision that would raise the
limit on federal insurance for bank deposits to $250,000 from $100,000,
a move demanded by some of the rescue plan's critics.
The euro's gains came a day before a meeting of the European Central
Bank at which policy makers led by Jean-Claude Trichet will probably
keep interest rates at 4.25 percent.
``I don't think the euro can get a lot of traction out of Trichet
tomorrow,'' said Jeremy Stretch, a strategist in London at Rabobank
International, the third-largest Dutch bank. ``If he is seen to be
hawkish, the euro will fall and if he is seen to open the gates, I
think the euro will slide on that basis as well. We are in an
environment where pro-growth policies are more highly prized than
anti-inflation'' policies, he said.
The pound declined versus the euro after Reuters reported the Chartered
Institute of Purchasing and Supply's index of manufacturing fell to 41
in September, from 45.1 in August, the lowest since January 1992.
Economists predicted 45. The reading has held below 50, signaling
contraction, for five months.
The yen fell against all 16 most actively traded currencies after the
Bank of Japan's quarterly Tankan survey showed large manufacturers
turned pessimistic about their prospects in September for the first
time in five years. The Japanese currency weakened to 150.07 per euro,
from 149.56 yesterday.
|
| 01.10 11:02 |
USD/CHF techs:
Resistance 3: Chf1.1420
Resistance 2: Chf1.1300
Resistance 1: Chf1.1240
Current price: Chf1.1154
Support 1: Chf1.1140
Support 2: Chf1.1080
Support 3: Chf1.1020
Comments: Tech on USD/CHF hasn't changed. Resistance on USD/CHF is
around yesterday’s high on Chf1.1240/50. Next band of resistance is
around Chf1.1300 and further – on Chf1.1420 (Sep 11 high). Support
comes at 23.6% of yesterday’s gain on Chf1.1140, then – at Chf1.1080
(38.2%) and Chf1.1020 (50%).
|
| 01.10 10:42 |
GBP/USD techs:
Resistance 3: $1.8120 Resistance 2: $1.7970
Resistance 1: $1.7850
Current price: $1.7850
Support 1: $1.7750
Support 2: $1.7680 Support 3: $1.7440
Comments: Tech on pound hasn't changed. Resistance is
around session highs on $1.7850 with stronger – at $1.7970/80 (23.6% of
the $1.8670-$1.7750 decline). Support comes at
yesterday’s low on $1.7750 with a break under will widen losses to
$1.7680. Strong support comes at Sep 11 low on $1.7440.
|
| 01.10 10:21 |
EUR/USD techs:
Resistance 3:$1.4280
Resistance 2: $1.4220
Resistance 1: $1.4130
Current price: $1.4144
Support 1: $1.4070
Support 2: $1.4000 Support 3: $1.3880
Comments: The euro continues to test
23.6% Fibo on $1.4130 ($1.4570-$1.4000 decline) with a break above
targets $1.4220 (38.2%) and $1.4280. Support is around session low on
$1.4070. If the pressure resumes, euro may test yesterday’s low on
$1.4000.
|
| 01.10 10:04 |
Е15 Unemployment (August) 7,5% |
| 01.10 09:50 |
OPTIONS: Expiries of note for today's 1400GMT cut
EUR/USD $1.4100, $1.3900, $1.3850
USD/JPY Y105.50, Y105.55, Y104.00, Y106.05
GBO/YSD $1.8000
UAD/USD $0.8140
NZD/USD $0.6850
|
| 01.10 09:31 |
UK CIPS manufacturing index (September) 41.0 |
| 01.10 09:20 |
JUNCKER: ECB will take into account all elements when making rate decision tomorrow |
| 01.10 09:09 |
Asian session: [M]
The dollar traded near a two-week high against the euro after the
Senate agreed to vote tonight on a $700 billion bank rescue plan that
may spur lending and support growth in the world's largest economy.
The U.S. currency yesterday jumped by the most in seven years after
Senate leaders vowed to revive a bill to buy distressed assets,
legislation that was rejected two days ago by the House of
Representatives. The euro slid against the yen after Dexia SA became
Europe's fourth lender this week to be bailed out by the region's
governments.
The U.S. Senate has set a vote for tonight on legislation that would
give Treasury Secretary Henry Paulson broad authority to buy troubled
assets from financial companies. Senators plan to include a provision
that would raise the limit on federal insurance for bank deposits to
$250,000 from $100,000, a move demanded by some of the rescue plan's
critics.
The euro traded near a two-week low against Japan's currency on
speculation European governments will bail out more banks after France
and Belgium yesterday led a state-backed rescue of Dexia, the world's
biggest lender to local governments.
Belgium, the Netherlands and Luxembourg rescued Fortis, the largest
Belgian financial-services company, the U.K. took control of Bradford
& Bingley Plc, the country's biggest lender to landlords, and
Germany bailed out Hypo Real Estate Holding AG in the previous two
days.
EUR/USD it was consolidated within the limits of $1,4060-$ 1,4160.
GBP/USD has been limited by frameworks $1,7780-$ 1,7870.
USD/JPY having established session low on Y105,60, has raised above level Y106,00.
European data for Wednesday sees the release of the state
manufacturing PMI releases, leading up to the Eurozone number at
0800GMT. Further Eurozone data at 0900GMT is expected to see the
unemployment rate at 7.3%. Also at 0900GMT, ECB President Jean-Claude
Trichet is due to participate in a debate at the Conference on Salary
in Europe, in Brussels.
UK data sees the September CIPS manufacturing PMI release and
index of services data, both at 0830GMT. The PMI is expected to
deteriorate further to a reading of 45.0.
US data should sees at 1215GMT by the ADP National Employment Report for September.
Further US data at 140GMT sees construction spending for September and
the ISM manufacturing index for September as well as the help-wanted
online index for September. The ISM manufacturing index is forecast to
fall to a reading of 49.0 in September. Construction spending is
expected to fall 0.3% in August, pulled down by the continued cuts in
private residential building. Data also sees the weekly crude oil
stocks data at 1435GMT.
|
| 01.10 08:53 |
JAPAN STOCKS:
Japanese stocks ended Wednesday's session
higher across the board, boosted by the overnight gains in the US.
However, indices were shy of their session highs. The benchmark Nikkei
225 was higher by 108.40 points, or 0.96%, at 11368.26. The
broader-based TOPIX was ahead by 13.72 points at 1101.13.
|
| 01.10 08:29 |
Stock market: Tuesday summary
Japan's stocks plunged to a near four-year low after a U.S.
bank-rescue package was rejected, unemployment rose and production
slumped, raising concern the financial crisis is hurting global growth. Sumitomo
Mitsui Financial Group Inc., Japan's third-biggest listed bank, and
Nomura Holdings Inc., the largest brokerage, sank more than 7 percent.
JFE Holdings Inc. dived 7.3 percent, leading steelmakers to the lowest
in three years on speculation a slowing economy will sap demand. The
Nikkei 225 Stock Average declined 483.75, or 4.1 percent, to close at
11,259.86 in Tokyo. The broader Topix index fell 40.46, or 3.6 percent,
to 1,087.41, the lowest since December 2004. All 33 industry groups on
the Topix slumped. The U.S. House of Representatives voted yesterday
to reject a $700 billion rescue package for the financial system,
sparking the biggest drop in the Standard & Poor's 500 Index since
the October 1987 crash. Treasury Secretary Henry Paulson said he'll
work to salvage the plan that would give him the authority to buy bad
loans from financial companies. Japan's unemployment rate rose to
the highest in two years in August while industrial production fell at
the fastest pace in five years, the government said today, signaling
the reach of the economic slowdown to households and manufacturers. The
Topix slumped 13 percent in September, its worst month since November
1993. The gauge is down 40 percent from a 15-year high in February
2007. The Nikkei fell 14 percent this month, its steepest slide in a
decade. JFE, the world's third-largest steelmaker, tumbled 7.3
percent to 3,180 yen, while bigger rival Nippon Steel Corp. retreated
6.3 percent to 387 yen. A gauge of steelmakers declined 4.9 percent to
the lowest since September 2005. Japan's Ministry of Economy, Trade
and Industry yesterday said domestic demand for crude steel will
probably drop in the three months to Dec. 31, the first quarterly
decline since December 2005.
European stocks rebounded from
their steepest drop in eight months after U.S. lawmakers said they plan
to salvage a $700 billion bank-rescue bill. Standard Chartered
Plc gained 8 percent and HSBC Holdings Plc added 4.2 percent as
congressional leaders said a bailout deal would eventually pass after
its rejection yesterday sparked a 7 percent drop in the MSCI World
Index. Dexia SA climbed 6.1 percent after the largest lender to local
governments got a 6.4 billion-euro ($9.2 billion) state-backed bailout.
Anglo Irish Bank Corp. Plc rallied 67 percent as the government
guaranteed the deposits and borrowings of six Irish lenders. Standard
Chartered, the U.K. bank that gets most of its profit from Asia, gained
8 percent to 1,345 pence. HSBC, Europe's biggest bank, added 4.2
percent to 901 pence. Christopher Dodd, chairman of the Senate Banking Committee, said senators may deal with the bill as early as tomorrow. Democratic
presidential candidate Barack Obama called for calm after the House
vote, saying the plan ``will get done.'' Republican nominee John McCain
urged lawmakers to ``go back to the drawing board'' and come up with
legislation that will pass. The Stoxx 600 fell 11 percent in
September, the worst monthly slump since January, after Lehman Brothers
Holdings Inc. filed for bankruptcy, American International Group Inc.
was taken over by the U.S. Treasury and Washington Mutual Inc. was
seized by regulators in the biggest U.S. bank failure in history.
U.S.
stocks rallied as growing expectations that lawmakers will salvage a
$700 billion bank- rescue package helped the Standard & Poor's 500
Index recover more than half of yesterday's 8.8 percent plunge. JPMorgan
Chase & Co., Citigroup Inc. and Bank of America Corp. jumped more
than 13 percent as Senate leaders vowed to resume work on the bailout
plan this week after its rejection spurred the S&P 500's biggest
decline in two decades. Hess Corp. and Schlumberger Ltd. added more
than 6 percent as optimism about the plan helped oil rebound from a
$10-a-barrel drop. Even with the advance, the S&P 500 is
poised for its worst month since 2002, with a decline of 10 percent,
and is down 9.9 percent for the quarter. The cost of borrowing dollars
overnight rose the most on record as banks hoarded cash after the
defeat of the bailout plan by Congress. The Dow average has lost
6.8 percent in September, and the Nasdaq is down 13 percent. The
S&P 500's retreat since the end of June is its fourth-straight
quarterly decline, the longest stretch since 2001. The Dow has slipped
5.4 percent and the Nasdaq is down 9.8 percent. Financial
companies in the S&P 500 this month traded at 1.1 times their book
value, the lowest valuation since Bloomberg began tracking the data in
1995. Commercial banks in the gauge trade at 0.8 times book value, also
a 13-year low. JPMorgan, the biggest U.S. bank by deposits, climbed
13 percent to $46.25. Citigroup rose 18 percent to $20.86. Bank of
America surged 13 percent to $34.30. Goldman Sachs Group Inc. increased
7 percent to $129.09 and Morgan Stanley gained 18 percent to $24.50.
|
| 01.10 08:00 |
USD/JPY techs:
Resistance 3: Y108.00
Resistance 2: Y107.00
Resistance 1: Y106.50
Current price: Y106.02
Support 1: Y105.80
Support 2: Y105.40
Support 3: Y105.00
Comments: The
dollar rose against the yen Tuesday, having dropped the most in a week
a day earlier, as the U.S. Senate prepared to vote on a bill to buy
distressed assets from banks following its rejection by the House of
Representatives on Sept. 29. The yen was little changed after the Bank
of Japan's quarterly Tankan survey showed an index that measures
confidence among large makers declined to -3 from 5, worse than the
median estimate for -2 in a survey. Currently rate tests Fibo support
at Y105.80 (23.6% of yesterday’s gain. Below losses may widen to
Y105.40 ( 38.2%) and Y105.00 (50%). Resistance is around yesterday’s
high on Y106.50 with stronger level is around Monday’s high on Y107.00.
|
| 01.10 07:40 |
USD/CHF techs:
Resistance 3: Chf1.1420
Resistance 2: Chf1.1300
Resistance 1: Chf1.1240
Current price: Chf1.1179
Support 1: Chf1.1140
Support 2: Chf1.1080
Support 3: Chf1.1020
Comments: USD/CHF weakens ahead of the possible
historical “rescue” bill approved in the Senate today. Senate Democrats
and Republicans agreed to vote today on legislation that would give
Treasury Secretary Henry Paulson broad authority to buy troubled assets
from financial companies. Senators plan to include a provision that
would raise the limit on federal insurance for bank deposits to
$250,000 from $100,000 now, a move demanded by some of the rescue
plan's critics. On Monday, the U.S. House of Representatives voted 228
to 205 against a bill authorizing the biggest government intervention
in the markets since the Great Depression. Resistance on USD/CHF is
around yesterday’s high on Chf1.1240/50. Next band of resistance is
around Chf1.1300 and further – on Chf1.1420 (Sep 11 high). Support
comes at 23.6% of yesterday’s gain on Chf1.1140, then – at Chf1.1080
(38.2%) and Chf1.1020 (50%).
|
| 01.10 07:21 |
GBP/USD techs:
Resistance 3: $1.8120
Resistance 2: $1.7970
Resistance 1: $1.7850
Current price: $1.7850
Support 1: $1.7750
Support 2: $1.7680
Support 3: $1.7440
Comments: The pound remains
under pressure amid EU banking system turbulence. Support comes at
yesterday’s low on $1.7750 with a break under will widen losses to
$1.7680. Strong support comes at Sep 11 low on $1.7440. Resistance is
around session highs on $1.7850 with stronger – at $1.7970/80 (23.6% of
the $1.8670-$1.7750 decline).
|
| 01.10 07:03 |
EUR/USD techs:
Resistance 3:$1.4280
Resistance 2: $1.4220
Resistance 1: $1.4430
Current price: $1.4092
Support 1: $1.4070
Support 2: $1.4000
Support 3: $1.3880
Comments: EUR/USD tries to recover Wednesday, but gains in the euro may be
limited by speculation governments will bail out more European banks
after France and Belgium led a state-backed rescue of Dexia SA
yesterday. A $9.2 billion capital infusion for Dexia, the world's
biggest lender to local governments, comes two days after Belgium, the
Netherlands and Luxembourg rescued Fortis, the largest Belgian
financial-services company, the U.K. took control of Bradford &
Bingley Plc, the country's biggest lender to landlords, and Germany
bailed out Hypo Real Estate Holding AG. Overnight EUR/USD challenged
23.6% Fibo on $1.4130 ($1.4570-$1.4000 decline) with a break above
targets $1.4220 (38.2%) and $1.4280. Support is around session low on
$1.4070. If the pressure resumes, euro may test yesterday’s low on
$1.4000.
|
| 01.10 06:43 |
Daily History for Sep 30, 2008
High Low Close
EUR/USD 1.4424 1.4005 1.4114
USD/JPY 106.50 103.46 105.97
GBP/USD 1.8117 1.7757 1.7854
USD/CHF 1.1246 1.0895 1.1207
EUR/JPY 151.43 148.52 149.60
EUR/GBP 0.7995 0.7841 0.7911
GBP/JPY 190.95 186.41 189.00
GBP/CHF 2.0072 1.9628 1.9983
Change % Change Last
Nikkei -483.75 -4.12% 11,259.86
Topix -40.46 -3.60% 1,087.41
FTSE +83.68 +1.74% 4,902.45
DAX +23.94 +0.41% 5,831.02
CAC +78.62 +1.99% 4,032.10
Dow +485.21 +4.68% 10,850.66
NASDAQ +98.60 +4.97% 2,082.33
S&P +58.31 +5.27% 1,164.73
10yr Note +1.9500 +0.537% 3.827%
NYMEX Crude Oil +4.27 +4.43% 100.64
Gold -13.60 -1.52% 880.80
|
| 01.10 06:21 |
Schedule for today, Wednesday, Okt 01, 2008
07:45 Italy PMI (September) 47.1
07:50 France PMI (September) 43.6 45.8
07:55 Germany PMI (September) 48.1 49,7
08:00 Е15 PMI (September) 45.3 47.6
08:30 UK CIPS manufacturing index (September) 45.0 45.9
09:00 Е15 Unemployment (August) 7,3%
11:00 USA MBA Mortgage Applications (Sep 26) -10.6%
12:15 USA ADP employment (September) -33К
14:00 USA ISM Mfg business index (September) 49,9
14:00 USA Construction spending (August) -0.6%
|
|
|