| 09.04 18:47 |
Dow -94.04 at 12482.40, Nasdaq -32.91 at 2315.85, S&P -13.19 at 1352.35
After attempting to lift itself out of the afternoon's lull, the stock
market has succumbed to selling pressure and has fallen back to earlier
lows.
Dallas Fed President Fisher stated the efficiency of the FOMC's rate cuts is questionable and he is not against cutting rates.
Nine of the ten economic sectors are trading lower. Only the energy sector (+0.4%) is making gains.
Gold closed the session $20.10 higher and ended the session at $938.10.
The 10-year Treasury note has benefitted from the pessimism in the
stock market. The benchmark 10-year Treasury note is up 25 ticks and
yielding 3.46%.
|
| 09.04 18:33 |
Dallas FED President Fisher: fears inflation will rise as economy rebounds |
| 09.04 18:17 |
Dow -60.82 at 12515.62, Nasdaq -24.12 at 2324.64, S&P -9.80 at 1355.74
The stock market remains largely unchanged from earlier levels. The
Nasdaq is still the only index with a loss of more than 1.0%.
The international markets closed lower. The DAX finished down 0.75%,
the FTSE finished 0.11% lower, the Nikkei lost 1.1%, and the Hang Seng
lost 1.4%.
|
| 09.04 18:07 |
Oil now trading at $111.88, up $3.38, recent highs marked at $112.21 |
| 09.04 17:47 |
Dallas FED President Fisher: 'clogged' financial pipes retarding further monetary policy accommodation.
Fed's cuts are not resulting in corresponding dip in mkt rates and the
economy will remain anemic while housing and financial mkts settle. Fed
can't flood economy w/money or will cause inflation and must remain
lender of last resort. Says funding pressures have eased since start of
TAF.
|
| 09.04 17:42 |
Dow -94.28 at 12482.16, Nasdaq -30.06 at 2318.70, S&P -12.30 at 1353.24
After trading sideways for the earlier part of the afternoon, stocks are pushing to new session lows. Oil has hit a new intraday high of $112.15 per barrel. It is currently 3.3% higher this session and 18.4% higher year-to-date. The rise in oil prices is helping the energy sector (+0.6%) outperform the other economic sectors.
|
| 09.04 17:23 |
American focus: dollar is on the way to new lows
The dollar fell within a cent of the all-time low against the euro on
renewed concern deepening credit market losses will hurt the economy.
The yen and Swiss franc rose against most of the major currencies after
Standard & Poor's downgraded the three largest U.S. mortgage
insurers yesterday, encouraging investors to pare holdings of
higher-yielding assets funded by loans in Japan and Switzerland. The
pound fell to a record versus the euro as a report showed U.K. consumer
confidence dropped.
``The fading optimism is putting a dent in the dollar,'' said Jens
Nordvig, a currency strategist at Goldman Sachs Group Inc. in New York.
``Now we are back in the old trend.''
The British pound weakened to 80 pence per euro for the first time as
an industry report showed U.K. consumer confidence slid to the lowest
level in almost four years before the Bank of England's meeting
tomorrow.
``The confidence report was the catalyst, and that's kept the pound
lower,'' said Neil Jones, head of European hedge-fund sales in London
at Mizuho Capital Markets, a unit of Japan's third-largest lender by
market value.
Bank of England policy makers will cut the 5.25 percent main rate by a
quarter-percentage point, according to the median forecast of 61
economists surveyed by Bloomberg News. The European Central Bank will
leave its main refinancing rate unchanged at 4 percent, according to
all of the 68 economists in a separate Bloomberg News survey.
The dollar weakened against the euro as the International Monetary Fund
cut the U.S. economic growth forecast for 2009 in its World Economic
Outlook report released today and said the currency was ``somewhat on
the strong side.''
The minutes of Federal Reserve's March meeting released yesterday
showed policy makers anticipated a first-half contraction even though
the bank has reduced the fed funds rate 3 percentage points since
September, pumped $628 billion through the financial system and allowed
securities firms to borrow directly from it for the first time since
its creation in 1913.
Traders added to bets that the Federal Reserve will lower the target
rate for overnight lending between banks by a half- percentage point to
1.75 percent at its April 30 meeting. The odds of such a cut were 44
percent, compared with 12 percent a week ago, futures on the Chicago
Board of Trade showed. The rest of the bets are for a quarter-point
reduction.
The euro may soon reach a target of $1.63, according to Andrew
Chaveriat, a currency strategist in New York at BNP Paribas Securities
SA, France's biggest bank.
|
| 09.04 17:00 |
Credit Suisse on FOMC minutes
Strategists
at Credit Suisse say the FOMC minutes, released Tuesday, suggest a
pause at 2.0%. They look for the Fed to lower interest rates another
25bps to 2.0% at the April 22 meeting and at the same time signal a
pause. Such a move would be dollar bearish for two reasons, they say.
"First, dollar rallies in the wake of Fed pauses have tended to require
the market to sustain near-term pricing for subsequent Fed hikes for
the rally to hold," Credit Suisse says. The market may try to price in
future Fed hikes hikes, but weak economic data should bring players
back to earth. "Second, the more the market comes to understand the
U.S. rate structure will remain low for the pertinent forecast horizon,
the more the market will likely view the dollar as a funding currency,"
the strategists say.
|
| 09.04 16:38 |
May NYMEX crude trading up $2.48 at $110.98. |
| 09.04 16:23 |
Dow -78.32 at 12498.12, Nasdaq -27.63 at 2321.13, S&P -11.29 at 1354.25 |
| 09.04 16:01 |
Stocks fell Monday on a profit warning by bellwether parcel delivery company UPS, which raised fears that more weak corporate earnings are in store.
Alcoa set the tone Monday when
the Dow component reported a 54% decrease in net income. That was
followed by profit warnings by chipmaker AMD on Monday and parcel delivery service UPS on Tuesday.
UPS shares fell more than 3%
after the parcel carrier said Tuesday that it expects lower quarterly
profits and will cut jobs due to higher fuel costs and falling volume.
Shares of Citigroup were
moderately higher after reports indicated that the bank is close to a
deal to unload $12 billion of risky leveraged loans and bonds to a
group of private-equity firms.
Fellow Dow component Boeing gained
nearly 4% despite reports that the plane maker will delay the launch of
its highly anticipated 787 model commercial aircraft.
U.S. light crude oil for May
delivery surged $2.76 to $111.26 a barrel on the New York Mercantile
Exchange after the weekly government inventory report showed weaker
supplies than forecast.
COMEX gold for June delivery $1 to $919 an ounce.
Treasury prices rose lowering the yield on the benchmark 10-year note to 3.53% from 3.56%.
|
| 09.04 15:43 |
USD/JPY breaks under Y102.00
Slices under Y102.00 area as as light bids provide limited cushion amid broadening dollar
weakness. Area of Y101.75/70 said to hold bids, as was the case
Tuesday, before dollar rebounded smartly from there.
|
| 09.04 15:38 |
Dow -23.69 at 12552.75, Nasdaq -12.84 at 2335.92, S&P -3.66 at 1361.88
Stocks continue to trade lower, but losses remain slight. Eight of the ten economic sectors are in the red.
The energy sector (+1.1%) is
trading higher, helped by a weekly report from the Department of Energy
that crude oil inventories declined 3.1 million barrels. Analysts were
expecting a build of 2.3 million barrels. Exxon Mobil (XOM 80.52, +1.05) and Chevron (CVX 90.47, +1.19) are both trading higher. The defensive-oriented utilities sector (+0.4%) is also trading in positive ground.
|
| 09.04 15:11 |
USD/CHF remains under pressure
Sliding lower as euro-dollar extends the day's highs, with little in
the way of near-term orders being reported. The 21-day should
provide stronger support at Chf1.0045. Bids then come in at Chf1.0020/15.
|
| 09.04 14:43 |
Dow -24.83 at 12551.61, Nasdaq -10.02 at 2338.74, S&P -4.88 at 1360.66
Stocks remain in negative territory. The session's pessimistic tone is broad-based.
The Department of Energy reported crude oil inventories for the week
ending April 5 declined 3.1 million barrels. Analysts were expecting a
build of 2.3 million barrels.
Oil has jumped on the report, now trading at $110.55 per barrel. Crude oil is up almost 2.0%.
|
| 09.04 14:31 |
US: EIA crude oil stocks -3.2m to 316.0m April 4 week. |
| 09.04 14:24 |
EU: Joint forecasts by German Ifo, Italian ISAE, French Insee:
- GDP: +0.5% q/q in 1Q, +0.4% in 2Q, +0.3% in 3Q.
- Average HICP: +3.3% y/y in 1Q, +3.2% in 2Q, +3.1 in 3Q.
- Industry output: +0.7% q/q in 1Q, +0.5% in 2Q, +0.4% in 3Q.
- Private consumption: +0.4% q/q in 1Q, +0.4% in 2Q, +0.3% in 3Q.
|
| 09.04 14:13 |
IMF reports over the global risks and financial market
Japan should keep rates accommodative, cut if needed. Worsening
outlook gives BOE room to cut rates. The world economy is facing the
biggest financial shock since the Great Depression, sparked by the
"debacle" in the U.S. subprime mortgage market, which will push the
U.S. economy into recession this year and with continued downside risks
there is a 25% chance of a global recession, the International Monetary
Fund is saying.
As reported last week, the WEO cut projected global growth to 3.7% from
4.2% for 2008, and cut 0.6 points off the 2009 estimate to 3.8%. The
cuts in the forecasts for the U.S. economy and advanced economies as a
whole were much more dramatic. The U.S. estimate was slashed 1.0 and
1.2 points for 2008 and 2009, to 0.5% and 0.6%, respectively.
|
| 09.04 14:00 |
US: Feb wholesale inventories +1.1% vs 0.8% |
| 09.04 13:47 |
OPTIONS: Expiries of note for today's 1400GMT cut
EUR/USD: $1.5500
USD/JPY: Y100.50, Y100.00
AUS/USD: $0.9260, $0.9225
Kiwi: $0.7920, $0.7800
|
| 09.04 13:36 |
US Stocks Open Higher: DJIA Up 34, Nasdaq Rises 4 |
| 09.04 13:22 |
Before the bell: the merket is jittery
About an hour before the open futures were mixed, pointing to a shaky
start on Wall Street. The Wall Street Journal reported that the Federal
Reserve is considering contingency plans for expanding its lending
power in the event its recent steps to unfreeze credit markets fail.
The report comes after the release of minutes Tuesday of the March 18
Fed meeting showed policymakers at the central bank worried about the
risk of a "severe and protracted" economic downturn that could last
into 2009.
Citigroup is reported
to be close to a deal to unload $12 billion of risky leveraged loans
and bonds to a group of private-equity firms, according to published
reports.
United Parcel Service,
the world's largest shipping carrier, cut its first-quarter profit
guidance after the bell Tuesday, citing lower volume and higher fuel
costs in the period. UPS is estimated to carry goods worth more than 5%
of the nation's gross domestic product on its trucks and planes and the
warning could be seen as another sign the economy falling into
recession.
Credit agency Standard & Poor's late Tuesday slashed its ratings on four mortgage insurers - MGIC Investment (MTG), Old Republic International (ORI), PMI Group (PMI) and Radian Group (RDN), and warned further downgrades are possible.
The Wall Street Journal reported that Washington Mutual,
the nation's largest thrift, rejected a preliminary takeover bid worth
about $7 billion from JPMorgan Chase. WaMu Tuesday obtained a $7
billion capital injection from private-equity group TPG.
And AMR unit
American Airlines expected to cancel more flights as it tried for a
second time to comply with federal inspection rules about wiring on its
key workhorse aircraft.
Oil prices were little changed in early trading ahead of the 10:30 a.m.
ET report on U.S. fuel inventory. Electronic trading trimmed 7 cents
off the price of a barrel of light sweet crude, taking it to $108.43.
|
| 09.04 13:06 |
CANADA FLAHERTY: Reported saying
- Does not see binding regulatory commitments for Canada from G7 meeting
- Has invited one Canadian bank CEO to G7 outreach session
- Canada financial institutions on strong footing compared to some other nations.
- Prefers market led solutions to global credit crisis. Would not prefer government funded solutions.
|
| 09.04 12:56 |
Societe Generale SA about the yen
``There is speculation the new governor, Shirakawa, will be hawkish,''
said Yuji Saito, head of foreign-exchange sales in Tokyo at Societe
Generale SA, a unit of France's second-largest bank by market value.
Japan's currency may rise to 101.80 a dollar and 160 a euro today,
Saito forecast.
|
| 09.04 12:38 |
Futures holding a mixed tone in ongoing morning trade, Dow futures down a modest 15 points at present and Nasdaq futures up 2, both shaking off losses from a couple of hours ago. |
| 09.04 12:25 |
European session: the market can't find certain direction
the next data was issued
06:00 Germany Trade balance (February) unadjusted, bln 16.9 17.1
06:00 Germany Current account (February) unadjusted, bln 15.4 15.0
08:30 UK Industrial production (February) 0.3% -0.1%
08:30 UK Industrial production (February) Y/Y 1.3% 0.4%
08:30 UK Manufacturing output (February) 0.4% 0.4%
08:30 UK Manufacturing output (February) Y/Y 1.9% 0.6%
09:00 Е13 GDP (Q4) revised 0.4% 0.4% 0.4%
09:00 Е13 GDP (Q4) revised Y/Y 2.2% 2.2% 2.2%
The dollar weakened broadly on Wednesday as investors contrasted
Federal Reserve comments pointing to continued U.S. economic weakness
with expectations for further inflation-busting talk from the euro zone.
Sterling fell to record lows against the euro,
as falling UK consumer morale and an IMF downgrade to growth stoked
debate on how aggressively the Bank of England might cut rates after
its policy meeting on Thursday.
Despite data earlier confirming that euro zone economic growth had
slowed in the last quarter of 2007, investors were still contrasting a
relatively robust euro zone economy with an ailing U.S. - in the grip
of a major slowdown.
EUR/USD: Opened in early Europe around $1.5703. Rate
eased back to $1.5700 from here on rumours concerning a German bank
being in trouble, later confirmed as Weserbank with just E120mln of
assets. Euro-dollar rallied back to marginal highs for the day above
$1.5740 ahead of the US open.
GBP/USD: Opened early Europe at $1.9665. Rate then consolidated
between $1.9650/95 in early Europe. Release of stronger than expected
UK industrial production data lifted cable to $1.9724. Cable bids
$1.9680, $1.9650. Offers $1.9720/30, $1.9750/60
USD/JPY: European dealing opened on a quiet note, the market
seemingly in consolidatory mode, with dollar-yen slipping to marginal
lows in early dealing under Y102.20. Rate recovered to trade within a
narrow 25-point range over the remainder of the morning, later pressing
above Y102.60 into early US trade. Dlr-yen offers Y102.80/00, barriers
Y103.00/20, bids Y102.20/15
Today at 14:00 GMT the US will issue Wholesales
inventories report. Analysts predict inventories rose 0.6%
versus 0.8% month earlier.
|
| 09.04 12:13 |
UBS AG looks for the dollar to go higher
Investors should buy the dollar against the euro as the
U.S. rebounds from a ``mild recession'' this year while growth in
Europe peaks, according to UBS AG, the world's second-largest currency
trader. The dollar will rise to $1.52 per euro within two to four weeks
and to $1.47 in three months, UBS forecast.``We expect the dollar to strengthen,'' a
team of UBS strategists led by Zurich-based Mansoor Mohi-uddin wrote in
a report yesterday. ``Forward-looking indicators suggest only a mild
recession in the U.S. and the possibility of a recovery in the second
half this year.''
|
| 09.04 11:56 |
ING on BOE rates
Chris Turner, head of FX strategy at ING: “It's raining bad news on the UK. There's now speculation that
the MPC could cut rates by 50 basis points rather than 25 basis points.”
|
| 09.04 11:42 |
European focus
The yen rose against the South African
rand and New Zealand dollar as a decline in stocks prompted investors
to pare holdings of higher-yielding assets funded with loans in Japan. The yen held its gains earlier after
the Bank of Japan said growth in the economy is slowing, downgrading
the assessment for the first time in four months. The slowdown is
``mainly due to the effects of high energy and materials prices,'' the
central bank said in a monthly report in Tokyo today.
The yen was supported earlier by
speculation the Bank of Japan will be reluctant to cut interest rates
this year even as economic growth slows. While a cycle of higher
production and profit feeding into wage increases and consumer spending
is weakening, it remains intact, Masaaki Shirakawa, approved by
lawmakers as central bank governor today, told reporters.
The pound dropped per euro, the lowest level since the euro's inception in 1999 after an industry report showed U.K. consumer confidence slid to the lowest in almost four years..Nationwide
Building Society's consumer confidence index declined 1 point to 77,
the least since the monthly gauge began in May 2004, the British
mortgage lender said today. U.K. house prices dropped the most since
1992 last month as the seizure in worldwide credit markets made
mortgages harder to obtain, a report by HBOS Plc showed yesterday.
The dollar weakened earlier as traders added to bets the Federal
Reserve will lower its target rate for overnight bank loans by half a
percentage point to 1.75 percent at its April 30 meeting. The odds of
such a cut were 44 percent, compared with 12 percent a week ago,
futures on the Chicago Board of Trade showed. The rest of the bets are
for a quarter-point reduction.
Fed Bank of Dallas President Richard Fisher is scheduled to speak
on the U.S. economy today. Economic growth will come to a halt in the
first six months of 2008 as consumer spending cools, a survey showed.
The chances of a BOJ rate cut by Dec. 31 dropped to 35 percent from 48
percent yesterday, according to calculations by JPMorgan Chase &
Co. using interest-rate swaps. Shirakawa and his colleagues left the
overnight rate at 0.5 percent, as expected by all 41 economists
surveyed.
|
| 09.04 11:22 |
EU bourses advance
European equity bourses have reversed earlier losses, taking cue
from squeeze higher on Wall Street futures on news that Citigroup is
nearing a deal to shift $12bln of its leverage loan portfolio. CAC-40
is up 3pts, FTSE-100 is up 15pts and Xetra-DAX is up 7pts.
|
| 09.04 11:12 |
BOJ SHIRAKAWA: Has no comment if he is dovish or hawkish |
| 09.04 11:07 |
OECD forecast: Germany GDP Growth of +2.1% in 2008 and +1.6% in 2009
-Says credit crisis could adversely affect investment in Germany
-Sees Germany HICP inflation +2.3% in 2008, +1.8% in 2009
|
| 09.04 10:42 |
GERMANY ECOMIN: Jobless level couyld dip below 3mln in some months |
| 09.04 10:42 |
GERMANY ECOMIN: Sees first signs 2009 GDP growth weaker than in 2008 |
| 09.04 10:32 |
USD/JPY techs:
Resistance 3: Y104.00
Resistance 2: Y103.60
Resistance 1: Y102.80
Current price: Y102.51
Support 1: Y101.80
Support 2: Y101.40
Support 3: Y100.80
Comments: Dollar rebounds.
Resistance comes at yesterday’s high Y102.80. Rise above will target Y103.60 (Mar
11 high) and Y104.00. The nearest support is between Y102.00-Y101.80
zone. Stronger support comes at Y101.40 (Friday’s low), with a break below may
widen losses to Y100.80.
|
| 09.04 10:15 |
USD/CHF techs:
Resistance 3: Chf1.0250
Resistance 2: Chf1.0220
Resistance 1: Chf1.0170
Current price: Chf1.0123
Support 1: Chf1.0100
Support 2: Chf0.9960
Support 3: Chf0.9880
Comments:
Dollar retreats. The bearest resistance is yesterday’s high on
Chf1.0170. Above there is a room for a rise up to Chf1.0220
and then – to Chf1.0250 (Mar 24). Support is around Chf1.0100 and then
Chf0.9960.
Stronger support is around Chf0.9880 (Mar 31 low).
|
| 09.04 10:00 |
GBP/USD techs:
Resistance 3: $1.9930
Resistance 2: $1.9800
Resistance
1: $1.9720
Current price: $1.9694
Support 1: $1.9650
Support 2: $1.9580
Support 3: $1.9460
Comments: Cable tries to rebound. Resistance
comes near $1.9720, stronger – at $1.9800 with a break above will open the way
to Apr 08 high on $1.9930. Support
is around session low at $1.9650 with a break under will lent pound to
challenge key support at $1.9580 (trend line from Apr 2006). Below the losses will extend to $1.9460.
|
| 09.04 09:39 |
EUR/USD techs:
Resistance 3:$1.5900
Resistance 2: $1.5840 Resistance 1: $1.5800 Current price: $1.5721
Support 1: $1.5670
Support 2: $1.5620
Support 3: $1.5510
Comments: Euro still trades within
the narrow range. Minor resistance comes at Apr 08 high on $1.5800. Above the $1.5840
is matched with a break higher will bring euro to life-time high on $1.5900. Support
is around yesterday’s low on $1.5670. Further decline may extend to Apr 07 lows
on $1.5620 with stronger – near $1.5510 (last Thursday low).
|
| 09.04 09:09 |
OPTIONS: Expiries of note for today's 1400GMT cut
EUR/USD: $1.5500 USD/JPY: Y100.50, Y100.00 AUS/USD: $0.9260, $0.9225 Kiwi: $0.7920, $0.7800
|
| 09.04 09:01 |
EU(13) GDP (Q4) revised +0.4% q/q; +2.2% y/y |
| 09.04 08:53 |
UK DARLING: IMF still predicting growth in UK, has downgraded UK forecast less than others
1.UK employment, exports are healthy but we must remain vigilant 2.Underlying UK economy is extremely strong 3.UK better prepared for turmoil than in the past
|
| 09.04 08:50 |
GBP/USD rises
GBP/USD jumps above $1.9700, as rate reacts to
stronger than expected UK industrial output data. Offers now seen placed
to $1.9720, more between $1.9730/35 ahead of $1.9750/60. Bids remain in place
back at $1.9650/40.
|
| 09.04 08:32 |
UK Manufacturing output (February) +0.4% m/m; +1.9% y/y |
| 09.04 08:31 |
UK Industrial production (February) +0.3% m/m; +1.3% y/y |
| 09.04 08:22 |
Median estimate on UK industrial production: +0.1% m/m and +1.2% y/y |
| 09.04 08:15 |
Orders:
EUR Bids: $1.5680/70, $1.5650/40 Offers: $1.5740, $1.5800
JPY Bids: Y101.80, Y101.50 Offers: Y103.00, Y103.20
GBP Bids: $1.9650/40, $1.9610/00 Offers: $1.9700, $1.9730/35, $1.9750/60, $1.9790/00
AUSSIE Bids: $0.9280, $0.9250 Offers: $0.9350/70
|
| 09.04 08:02 |
Citigroup: ECB stays on hold
David Pais, currency strategist at Citigroup: “I
don't think expectations have changed a great deal. The ECB will stay on hold
and likely maintain their hawkish rhetoric.”
|
| 09.04 07:53 |
Asian session: Yen rises as stock drop cuts demand for higher-yielding assets [M]
The yen rose against the dollar and euro as a decline in Asian stocks prompted
investors to pare holdings of higher-yielding assets funded with loans in Japan.
The U.K. currency weakened before a
Bank of England meeting tomorrow, when policy makers will cut the main rate a
quarter-percentage point to 5%, according to a survey. The yen was also supported by speculation the Bank of Japan will be reluctant to cut rates this
year even as the economy slows. The yen held its gains after the
Bank of Japan said growth in the economy is slowing, downgrading the assessment
for the first time in four months.
EUR/USD printed
low on $1.5690 before recovering to $1.5720. GBP/USD consolidated
between the $1.9650/85 zone. USD/JPY declined
from Y102.80 to Y102.12.
EU session is full
with economic data,
including Germany’s
industrial production and EU 4Q GDP. Later at 14:00 GMT the US will issue Wholesales
inventories report. Analystspredictinventoriesrose0.6%
versus 0.8% month earlier.
|
| 09.04 07:24 |
Japans stocks close lower
Japan's benchmark stock indices ended lower.
The Nikkei 225 ended 138.54 points, or 1.05%, at 13111.89. The broader-based
TOPIX was down 19.79 points at 1262.90.
|
| 09.04 07:22 |
Stock market: Tuesday summary
Stock market fixing: Nikkei 225 -199.80
(-1.5%) 13,250.43
Topix -22.94 (-1.8%) 1,282.69
DAX 30 -49.05 (-0.7%) 6771.98
САС 40 -31.91
(-0.7%) 4912.69
FTSE 100 -24.60 (-0.4%) 5990.20
Dow -33.55 (-0.27%) 12578.88
Nasdaq -16.07 (-0.68%) 2348.76
S&P -6.99 (-0.51%) 1365.55
10YR -5/32 3.55% 99 16/32
OIL NYMEX -0.59 (-0.54%) $108.50
Japan's stocks fell the most this month after chipmakers sank on concern demand will
slow. Elpida tumbled 10%, the most since it listed in
November 2004. Advantest Corp., the world's biggest maker of memory-chip
testers, dropped 5.5%. Tokyo Electron Ltd. lost 3.8%. Shinko Securities Co. plunged 6%, while market
leader Nomura Holdings Inc. fell 5.3%. Aeon Co. plummeted 7.5%, the biggest decline
since March 2004. The company yesterday said annual profit fell 24% as new
regulations forced its consumer credit branch to cut interest rates and
earnings declined at its U.S.
unit.
European stocks
dropped for the first time in three days after U.S.
chipmaker Advanced Micro Devices Inc. said first-quarter revenue fell more than
forecast and TomTom NV predicted lower sales. STMicroelectronics sank 1.8%. ASML Holding NV, Europe's largest maker of semiconductor equipment,
declined 6.3% after iSuppli Corp. reduced estimates for sales of memory chips
this year. Infineon Technologies AG fell 6.7%. Europe's second-biggest maker of semiconductors was
downgraded to ``neutral'' from ``outperform'' at Credit Suisse Group.
Stocks slipped
Tuesday as Alcoa's weak results and AMD's profit warning spooked investors at
the start of the earnings reporting period.
Among corporate news: The Dow component and aluminum producer Alcoa set the earnings period
in motion late Monday on a down note, reporting quarterly results that fell
from a year earlier and missed estimates, on sales that fell and beat
forecasts.
The chipmaker Advanced Micro Devices
warned late Monday that first-quarter sales won't meet its previous forecast
due to weakness across all of its businesses. The company also said it was
cutting 10% of its workforce.
Economic news:
The National Association of Realtors' (NAR) Pending Home Sales Index fell to 84.6 in February, down 1.9%
from a revised reading of 86.2
in January and down 21.4% versus the same period last
year. Economists were expecting the index to decline to 85.2 for the month.
|
| 09.04 06:55 |
FOREX. Tuesday summary
The dollar was little
changed against the euro on speculation minutes of the Federal Reserve's March meeting will show
it's preparing to slow interest-rate cuts, while the pound fell to a record
against the euro. The U.S. currency has risen 0.5%
against the euro this month. The chance that the Fed will lower the target
lending rate by three-quarters of a percentage point to 1.5% by the end of
October has been cut in half in the past month, futures on the Chicago Board of
Trade show. Traders see a 12% chance the central bank will make such a
reduction, compared with 25% odds a month ago. The central bank is next
scheduled to decide on interest rates April 30. The central bank cut
the fed funds rate to 2.25% at the March 18 meeting. Minutes detail how mkt conditions
deteriorated and econ prospects worsened. Dallas Fed's Fisher wanted to focus
more on measures targeted at liquidity probs and worried about inflation
prospects; Philly's Plosser focused on inflation worries. The European Central
Bank will hold the main refinancing rate steady on April 10 at a six-year high of 4%. The euro
gained 1.6% against the dollar in the two weeks following the ECB's last
meeting on March 6. The pound fell after the U.K. housing report raised
speculation that the Bank of England will reduce the 5.25% benchmark lending
rate on April 10. In the U.S., the National Association of
Realtors reported that the number of Americans signing contracts to buy
previously owned homes declined more than forecast in February, indicating the
real-estate recession will extend into a third year. Former Fed Chairman Alan
Greenspan told a conference in Tokyo via
satellite that the drop in U.S.
home prices will probably end this year.
EUR/USD tested
$1.5800 before it retreated to $1.5720 on position-adjustment. Recovery to $1.5770
was not long-lasting and rate set stable at $1.5700. GBP/USD fell
from $1.9920 to $1.9670 after the weak UK housing price data. USD/JPY rose
from Y101.70 to Y102.70.
EU session is full
with economic data,
including Germany’s
industrial production and EU 4Q GDP. Later at 14:00 GMT the US will issue Wholesales
inventories report. Analystspredictinventoriesrose0.6%
versus 0.8% month earlier.
|
| 09.04 06:38 |
BOJ: BOJ lowers assessment of economy, saying the economy is slowing
1.Japan stops saying economy is "expanding". 2.Economy slowing due to high energy prices. 3.Japan business sentiment cautious.
|
| 09.04 06:24 |
USD/JPY techs:
Resistance 3: Y104.00 Resistance 2: Y103.60 Resistance 1: Y102.80 Current price: Y102.49 Support 1: Y101.80 Support 2: Y101.40 Support 3: Y100.80 Comments: Techs on hasn’t changed. Resistance comes at yesterday’s high Y102.80. Rise above will target Y103.60 (Mar 11 high) and Y104.00. Yesterday rate challenged support between Y102.00-Y101.80 zone. Stronger support comes at Y101.40 (Friday’s low), with a break below may widen losses to Y100.80.
|
| 09.04 06:12 |
USD/CHF techs:
Resistance 3: Chf1.0250 Resistance 2: Chf1.0220 Resistance 1: Chf1.0170 Current price: Chf1.0133 Support 1: Chf1.0100 Support 2: Chf0.9960 Support 3: Chf0.9880 Comments: Dollar retreats from yesterday’s high on Chf1.0170. Above there is a room for a rise up to Chf1.0220 and then – to Chf1.0250 (Mar 24). Support is around Chf1.0100 and then Chf0.9960. Stronger support is around Chf0.9880 (Mar 31 low).
|
| 09.04 06:07 |
GBP/USD techs:
Resistance 3: $1.9930 Resistance 2: $1.9800 Resistance 1: $1.9710 Current price: $1.9668 Support 1: $1.9650 Support 2: $1.9580 Support 3: $1.9460 Comments: Cable under pressure after weak UK housing price data from Halifax. Support is around session low at $1.9650 with a break under will lent pound to challenge key support at $1.9580 (trend line from Apr 2006). Below the losses will extend to $1.9460. Resistance comes near $1.9710, stronger – at $1.9800 with a break above will open the way to Apr 08 high on $1.9930.
|
| 09.04 05:47 |
EUR/USD techs:
Resistance 3:$1.5900 Resistance 2: $1.5840 Resistance 1: $1.5800 Current price: $1.5703 Support 1: $1.5670 Support 2: $1.5620 Support 3: $1.5510 Comments: Euro consolidates within the narrow range. Minor resistance comes at Apr 08 high on $1.5800. Above the $1.5840 is matched with a break higher will bring euro to life-time high on $1.5900. Support is around yesterday’s low on $1.5670. Further decline may extend to Apr 07 lows on $1.5620 with stronger – near $1.5510 (last Thursday low).
|
| 09.04 05:20 |
Major Euroepan bourses are initially seen trading flat Wednesday: the FTSE up 5, the DAX up 7, the CAC unchanged and the Eurostoxx 50 up 3 |
| 09.04 05:16 |
Daily History for April 08, 2008
High Low Close EUR/USD 1.5797 1.5673 1.5702 USD/JPY 102.66 101.75 102.54 GBP/USD 1.9926 1.9664 1.9682 USD/CHF 1.0154 1.0064 1.0146
EUR/JPY 161.68 160.46 161.03 EUR/GBP 0.7987 0.7893 0.7976 GBP/JPY 204.08 201.17 201.84 GBP/CHF 2.0152 1.9887 1.9968
Change % Change Last Nikkei 225 -199.80 (-1.5%) 13,250.43 Topix -22.94 (-1.8%) 1,282.69 DAX 30 -49.05 (-0.7%) 6771.98 САС 40 -31.91 (-0.7%) 4912.69 FTSE 100 -24.60 (-0.4%) 5990.20 Dow -33.55 (-0.27%) 12578.88 Nasdaq -16.07 (-0.68%) 2348.76 S&P -6.99 (-0.51%) 1365.55 10YR -5/32 3.55% 99 16/32 OIL NYMEX -0.59 (-0.54%) $108.50
|
| 09.04 04:59 |
Schedule for today, Wednesday, April 09, 2008
03:30 Japan BoJ meeting announcement 0.50% 0.50% 06:00 Japan BoJ monthly economic report (April) 06:00 Germany Trade balance (February) unadjusted, bln - 17.1 06:00 Germany Current account (February) unadjusted, bln - 15.0 08:30 UK Industrial production (February) - -0.1% 08:30 UK Industrial production (February) Y/Y - 0.4% 08:30 UK Manufacturing output (February) - 0.4% 08:30 UK Manufacturing output (February) Y/Y - 0.6% 09:00 EU(13) GDP (Q4) revised 0.4% 0.4% 09:00 EU(13) GDP (Q4) revised Y/Y 2.2% 2.2% 14:00 USA Wholesale inventories (February) 0.6% 0.8% 23:50 Japan Current account (February) unadjusted, trln - 1.240 23:50 Japan Trade balance (February) unadjusted, trln - 0.086 23:50 Japan Machinery orders (February) adjusted - 19.6% 23:50 Japan Machinery orders (February) unadjusted Y/Y - 11.4% 23:50 Japan (M2+CDs) money supply (March) Y/Y - 2.3%
|
| 09.04 03:41 |
BOJ: Rate left unchanged at 0.50%; the decision was by an 9-0 unanimous |