| 17.04 18:55 |
FED: Fisher said US econ might not grow much this yr and mkt problems |
| 17.04 18:46 |
Dow -15.72 at 12603.55, Nasdaq -14.58 at 2335.53, S&P -2.77 at 1361.94
After moving back into negative territory, the major indices are trading sideways.
The financial (+1.1%) and consumer discretionary (+0.3%) sectors are in
positive ground, while the eight remaining economic sectors are trading
with losses. Financials are being led by Citigroup (C 24.03, +0.59)
and consumer discretionary stocks are being led by Time Warner (TWX
14.58, +0.23).
Though crude hit a new intraday record high earlier in the session,
refiner Valero (VLO 52.63, +0.95) is trading higher. Shares of VLO are
down 26% year-to-date. However, Valero's stock price is up 9% this
week alone. Valero was the subject of a favorable write-up in Barron's
earlier this week.
|
| 17.04 18:28 |
Dow -11.56 at 12607.87, Nasdaq -12.52 at 2337.48, S&P -1.97 at 1362.69 |
| 17.04 18:14 |
BAS on US April payrolls
"The week of the 12th is also the survey week for the employment
report. A survey week comparison indicates that initial claims are
down by 3,000. Our preliminary projection is for a decline in April
payrolls of 50,000."
|
| 17.04 17:28 |
Dow -19.46 at 12599.81, Nasdaq -13.20 at 2336.91, S&P -3.28 at 1361.43
After testing previous session lows, stocks are making a move upward.
However, each of the major indices contines to trade in the red.
Motorcycle manufacturer Harley-Davidson (HOG
35.72, -1.07) is trading near its 52-week low, despite announcing
better than expected earnings results this morning. Shares of HOG have
been hit hard in response to the slowdown in the U.S. economy; the
stock has lost nearly half its value during the past year. However,
the consumer discretionary sector (+0.3%), as a whole, is faring better.
|
| 17.04 17:11 |
JPM: "With the trend in jobless claims steadily moving higher, expect another weak payroll figure in April." |
| 17.04 17:04 |
American focus: dollar briefly pared its gain versus the euro after weak Philly Fed index
The dollar rose from a record low against the euro as Luxembourg Finance Minister Jean-Claude Juncker said financial markets have misunderstood the Group of Seven's position on currency volatility.
The U.S. currency started to gain after failing to weaken beyond $1.60
and gathered momentum after Juncker was quoted as saying the euro's
recent advance against the dollar isn't desirable. The pound climbed
against most of the major currencies on speculation the Bank of England
will announce a plan next week to help end a logjam in money markets.
``There's increasing political pressure to urge the European Central
Bank to do something about the euro,'' said Matthew Strauss, senior
currency strategist in Toronto at RBC Capital Markets Inc., a unit of
Canada's biggest bank by assets.
The U.S. currency has fallen 0.6 percent against the euro since G-7
finance ministers said after meeting in Washington on April 11 that
they're concerned ``sharp fluctuations'' in currency markets may hurt
the global economy.
``I don't have the impression that financial markets and other actors
have correctly and entirely understood the message of the G-7
meeting,'' Juncker told reporters in Luxembourg today, according to
Reuters.
The dollar briefly pared its gain versus the euro as manufacturing in the Philadelphia region contracted more than forecast in April. The Philadelphia Fed's general economic index
fell to minus 24.9, the lowest since 2001, from minus 17.4 in March,
the bank said today. Readings less than zero signal contraction.
``Juncker's comments made a few people a little bit nervous, but the
market still wants to test where the threshold will be for the central
banks to get in,'' said Jay Bryson, global economist at Wachovia Corp
in Charlotte, North Carolina. ``As long as the concern about the U.S.
economy is there, as long as data comes in weak, it's hard to see a
sustained dollar rally.''
Sterling increased 0.6 percent against the euro after reaching a record
low of 80.99 pence yesterday as charts traders use to predict currency
movements showed the pound is due to gain after dropping 10 percent
this year. The British currency increased 0.6 percent to $1.9842.
|
| 17.04 16:46 |
Dow -44.21 at 12575.06, Nasdaq -19.56 at 2330.55, S&P -6.39 at 1358.32 |
| 17.04 16:33 |
May NYMEX crude trading at $114.70, down $0.22 on the day after posting early high at $115.54. |
| 17.04 16:16 |
Dow -36.97 at 12582.30, Nasdaq -17.04 at 2333.07, S&P -4.86 at 1359.85
Stocks are making a concerted move downward, toward their session low, as the number of declining issues accelerates.
After starting the session as a sector leader, telecom (-0.6%) has
relinquished its position. AT&T (T 37.35, -0.26) is a laggard in
the sector, while rival Verizon (VZ 35.77, -0.08) is a relative leader.
Finnish phone and communications company Nokia (NOK 28.81, -4.88)
announced this morning better than expected earnings results, but its
disappointing outlook has led to considerable selling pressure.
|
| 17.04 15:51 |
Lehman on UK economy
"We agree that the U.K. economy most resembles
the U.S. in terms of recession vulnerability. Our economists just
revised their GDP forecasts to include a slight upward revision to Q1
U.K. GDP from 0.4% (q-o-q, sa) to 0.5% followed by less than 0.25% for
each of the remaining quarters - effectively a growth recession even if
not a technical one."
|
| 17.04 15:35 |
Merrill Lynch's weak quarterly results dragged on blue-chip stocks Thursday morning, while upbeat earnings from IBM and eBay helped temper losses for the tech sector.
The drugmaker Pfizer reported
lower sales and earnings due to weakness in its blood-pressure
treatment Norvasc and allergy treatment Zyrtec. However, the Dow
component's results managed to top analysts' estimates.
IBM reported higher quarterly earnings that topped estimates thanks to strong U.S. sales. (Full story).
eBay reported higher quarterly
sales and earnings that topped forecasts, due to more ad listings and
strength in its global businesses.
|
| 17.04 15:12 |
The latest Lehman Brothers client poll: Assuming that the U.S. already entered recession, which economy will be next
1 U.K. - 52%;
2. Eurozone - 14%;
3. Japan - 16%;
4. Australia - 4%;
5. China - 7%;
6. None of the above - 7%.
|
| 17.04 14:59 |
Dow +1.30 at 12620.57, Nasdaq -8.33 at 2341.78, S&P -0.01 at 1364.70
Stocks have taken a sudden upturn with no clear catalyst. The Dow
Jones and S&P 500 are now trading near the unchanged mark, while
the Nasdaq remains down a bit.
Despite this morning's earnings miss by Merrill Lynch (MER 45.64,
+0.75), brokers are pushing higher. Goldman Sachs (GS 170.85, +1.80),
Lehman Brothers (LEH 42.28, +0.56), and JPMorgan Chase (JPM 45.10,
+0.14) have all reversed their early losses.
Oil is trading near the unchanged line, currently $114.97 per barrel,
after hitting a new intraday record of $115.54 per barrel earlier in
the session.
|
| 17.04 14:37 |
SNB ROTH: Momentum of Swiss economy still very strong
- SNB expects gradual economic slowdown
- High inflation due to high oil prices a problem for all banks
|
| 17.04 14:18 |
EUR/USD went higher on weak data:
Lifted to $1.5940 area post-data, the weak
Phila. Fed report and less than inspiring sub-components undercutting
the dollarand sizeable $1.5900 expiry further freeing the pair. Traders
mixed on euro outlook from here, some see overhang of longs still, even
after the earlier dive to $1.5848 area, others see a market ready to
tackle $1.6000 despite supply ahead of that level. Pair now at $1.5910 in fairly subdued trading.
|
| 17.04 14:04 |
US: March leading indicators +0.1% after -0.3% in Feb. |
| 17.04 14:03 |
US: April Philly Fed index -24.9, vs -17.4. |
| 17.04 13:54 |
OPTIONS: Expiries of note for today's 1400GMT cut
USD/JPY: Y102.25,
Y100.00
EUR/JPY: Y157.50
AUS/USD: $0.9350,
$0.9400, $0.9420/25
USD/CAD: C$1.0270
|
| 17.04 13:42 |
Early trading sees the Dow down only 40 points while Nasdaq is down just 3 |
| 17.04 13:25 |
Before the bell: a poor start
Stocks appear headed towards
a weak open Thursday as more losses at Merrill Lynch and signs of
weakness in the labor market offset some stronger-than-expected
corporate earnings.
The number of newly laid off workers filing claims for
unemployment benefits rose more than expected last week, according to a
report from the Labor Department.The report said new claims for
unemployment benefits increased to 372,000, an increase of 17,000 from
the previous week.
There were continued signs of earnings problems in the financial sector when student loan lender Sallie Mae posted
a bigger-than-expected $104 million loss in the first quarter after the
close Wednesday and said in the current loan environment it can not
make profitable loans. The bad news in finance continued early Thursday when Merrill Lynch
wrote down another $1.5 billion in the value of its assets and reported
a net loss of $2.16 billion that was larger than expected. The nation's
largest brokerage firm also announced it was cutting 4,000 jobs.
Shares of IBM surged 1.5% in
early Frankfurt trading after Big Blue posted strong quarterly results
late Wednesday that easily topped the consensus estimates. The company
also lifted its guidance for full-year results above Wall Street
forecasts.
Online auction site eBay also reported better than expected revenue and
sales as it raised guidance for the year. Shares were up 0.4% in
after-hours trading.
There were also mixed results from two Dow components reporting results early Thursday. Diversified manufacturer United Technologies posted improved earnings that topped forecasts. But drugmaker Pfizer saw net income fall and its gain in income excluding special charges also fell short of analysts' forecasts.Internet search leader and tech bellwether Google is
due to release earnings after the market close; The Wall Street Journal
reported that Yahoo is closer to outsourcing its search advertising to
Google.
|
| 17.04 13:14 |
Futures losses extending as the morning moves along, Dow futures down 85 now and Nasdaq futures off 10 as traders digest earnings reports from ML, Pfizer and others. |
| 17.04 13:00 |
ECB WEBER: Don't fully share IMF growth outlook for eurozone
- Acknowledge EU growth below potential in 2008 and 2009
- Food, energy price pressures stronger than expected
- ECB Staff inflation forecasts to be revised up on food/wage deal.
|
| 17.04 12:46 |
RBC calls for -50bp Fed rate cut. |
| 17.04 12:30 |
US: Initial claims +17k to 372k vs 355k expected and 375k in the March survey week. |
| 17.04 12:22 |
European session: dollar got support
the next data was issued
09:00 E-15 Trade balance (February) unadjusted, bln +0.8 -10.7
11:00 CAD CPI excluding food and energy (March) Y/Y 1.3% 1.5%
11:00 CAD CPI excluding food and energy (March) 0.2% 0.5%
11:00 CAD CPI (March) Y/Y 1.4% 1.8%
11:00 CAD CPI (March) 0.4% 0.4%
The dollar rose versus the yen and trimmed earlier losses against the euro
after Merrill Lynch results beat some analyst expectations. The world's
largest broker said its first quarter net loss was $1.96 billion or
$2.19 a share, not as bad as some analysts had predicted.
The dollar fell earlier to a record low against the euro before
a Federal Reserve report that may show shrinking manufacturing in the
Philadelphia region, strengthening the case for U.S. interest-rate cuts. The yen dropped to the lowest level in more
than three months against the euro as rising stocks prompted investors
to buy higher- yielding assets with loans from Japan. The pound rose against the major currencies after a rally in European stock markets stoked demand for higher-yielding assets.
The pound also climbed from a two-week low versus the dollar on
speculation the Bank of England will next week announce a plan to help
end a logjam in money markets. It rebounded from a record against the
euro as technical charts showed it's due to gain ground after dropping
10 percent this year.
EUR/USD: Early
European trade saw a move to take out the overnight base, stops
triggered as euro-dollar slipped to a $1.5898 low. Time spent here was
brief, euro-dollar quickly recovering to test and ultimately take out
the Asian high, a major Asian sovereign said to be leading the
move.Rate was able to make a marginal show above Wednesday's high,
topping out at $1.5985 and easing to $1.5960. Early US trade then saw a
slide back under $1.5900 as Merrill writedowns came in lower than
expected. Offers seen placed to $1.5880, a break above to open a move
on toward $1.5900. Bids to $1.5840 with more stops below.
GBP/USD:
Opened early Europe at $1.9713. Cable was pressed down to lows of
$1.9693 in early Europe, as it eased in line with euro-dollar's dip to
$1.5900, then struggled to track recovery as euro-sterling pushed to
stg0.8097. Wire report that BOE/Govt mortgage rescue plan could be in
place by next week boosted sterling with cable rallying to $1.9785.
Late Europe trade sees sterling extend to $1.9790
USD/JPY rallied from Y101.70 to Y102.70.
At 12:30 GMT US Labor Department will issue
Jobless Claims data. At 14:00 GMT Philly Fed’s index will come. Analysts predict
the index rose to -13,0 versus -17,4
in March.
|
| 17.04 12:11 |
USD/CHF: Accelerating higher as the greenback finds favour across the board, jumping from Chf1.0030 to Chf1.0080 and remaining buoyed at time of writing. Offers now come in at Chf1.0100/05, Chf1.0170 and Chf1.0210/20, traders say. |
| 17.04 12:05 |
Germany's leading economic research institutes lowered their forecast for German GDP
German GDP growth this year to 1.8% from the 2.2% rate projected in
October. However, the institutes expect economic momentum to gain in
speed again next year. Over the medium-term,
theinstitutes project average growth of 1.5% from 2007 to 2012.
|
| 17.04 11:50 |
EUROGROUP JUNCKER:G7 stressed does not like excessive volatility as bad for global growth. |
| 17.04 11:49 |
EUROGROUP JUNCKER: Markets did not correctly understand G7 message on FX. |
| 17.04 11:32 |
OPTIONS: Expiries of note for today's 1400GMT cut
USD/JPY: Y102.25,
Y100.00
EUR/JPY: Y157.50
AUS/USD: $0.9350,
$0.9400, $0.9420/25
USD/CAD: C$1.0270
|
| 17.04 11:08 |
European focus: euro gets higher
The dollar fell to a record low against the euro before
a Federal Reserve report that may show shrinking manufacturing in the
Philadelphia region, strengthening the case for U.S. interest-rate cuts.
The U.S. currency was also near a one-month low against the Australian
dollar and declined to a record low versus the Norwegian krone after
crude oil rose to a record. The yen dropped to the lowest level in more
than three months against the euro as rising stocks prompted investors
to buy higher- yielding assets with loans from Japan.
The dollar has declined 13 percent on a trade-weighted basis in the
past 12 months as the collapse of the U.S. subprime-mortgage market
prompted the Fed to cut rates to prevent bank losses from pushing the
economy into a recession.The pound rose against the major currencies after a rally in European stock markets stoked demand for higher-yielding assets.
The pound also climbed from a two-week low versus the dollar on
speculation the Bank of England will next week announce a plan to help
end a logjam in money markets. It rebounded from a record against the
euro as technical charts showed it's due to gain ground after dropping
10 percent this year. Traders bought the pound and sold the yen as they
returned to the carry trade.
``The pound may rise to $2 in the near term, but I would expect any
rebound to be shallow,'' said Ian Stannard, a senior currency
strategist in London at BNP Paribas SA, France's largest bank. ``The
news of the Bank of England's new measure might help for now, but in
the medium term we're still bearish the pound. News in the U.K. is
likely to continue to come out on the negative side.''
|
| 17.04 10:53 |
European stocks paring gains after Merrill Lynch reported Q1 operating loss/share of $2.20 vs estimate of $2.06.However Stocks recovering now as market reacts to Merrill's credit valuation adjustments of $3bln vs expectations of $6-$8 billion in fresh wri |
| 17.04 10:38 |
US indystry news:
Merrill Lynch has reported Q1 results with a net loss of $1.97 bln or a
loss per share of $2.20, slighly worse than estimates. The bank
reported credit valuation adjustments of negative $3 bln.
|
| 17.04 10:29 |
ECB WEBER: noted that the outlook for the euro area economy was still robust, although he acknowledged that the risks to the economy were on the downside. |
| 17.04 10:28 |
ECB WEBER: High energy and food prices mean that inflation in the euro area will stay elevated for a longer period than the ECB initially thought likely |
| 17.04 10:21 |
Option trader notes that he believes that the size of barrier interest at $1.6000 is not as large as was seen at $1.5000. |
| 17.04 10:17 |
USD/JPY techs:
Resistance 3: Y103.60
Resistance 2: Y103.00
Resistance 1: Y102.30
Current price: Y102.04
Support 1: Y101.70
Support 2: Y101.30
Support 3: Y100.80
Comments: Dollar trades in a same range.
Resistance is around Apr 11 highs on Y102.30 with a break above will target Apr 03
highs on Y102.90/00. StrongerlevelisnearMar 11 highsonY103.60. SupportcomesnearsessionlowsY101.70. Under there is a room for a dipper correction to
Y101.30 and then – to Wednesday’s low on Y100.80.
|
| 17.04 09:57 |
USD/CHF techs:
Resistance 3: Chf1.0170
Resistance 2: Chf1.0100
Resistance 1: Chf1.0030
Current price: Chf1.0007
Support 1: Chf0.9940
Support 2: Chf0.9880
Support 3:
Chf0.9820
Comments: Dollar advances. Resistance comes near session high at Chf1.00030 with a break above
will extend rise to Chf1.0100 and Chf1.0170 (Apr 09 high). Support comes at yesterday’s low on Chf0.9940, then – on Chf0.9880 (Apr 10 low).
BreakunderwillwidenlossestoChf0.9820. 0100/10.
|
| 17.04 09:50 |
ECB ORPHANIDES: 4% refi rate contributes to price stability |
| 17.04 09:32 |
GBP/USD techs:
Resistance 3: $1.9900
Resistance 2: $1.9840
Resistance 1: $1.9800
Current price: $1.9770
Support 1: $1.9700
Support 2: $1.9660
Support 3: $1.9610
Comments: Cable broke $1.9730 going to Wednesday’s high on $1.9800/10. Key resistance comes near channel
line from Mar at $1.9840. Lift higher will open a way to $1.9900. Support comes near $1.9700, further – at $1.9660. Key
level is around trend line from Apr 2006 at $1.9610.
|
| 17.04 09:18 |
EUR/USD techs:
Resistance
3:$1.6080
Resistance 2: $1.6020
Resistance 1: $1.5980
Current price: $1.5960
Support 1: $1.5900
Support 2: $1.5860
Support 3: $1.5750
Comments: Euro holds below new
record high on $1.5980 (key resistance). Above the recover may extend to $1.6020
and $1.6080. Strong support comes near session low on $1.5900. Below
correction may target $1.5860 and $1.5750 (Wednesday’s low).
|
| 17.04 09:03 |
EU(15) Trade balance (February) unadjusted, +E0.8 mln |
| 17.04 08:48 |
OPTIONS: Expiries of note for today's 1400GMT cut
USD/JPY: Y102.25, Y100.00 EUR/JPY: Y157.50 AUS/USD: $0.9350, $0.9400, $0.9420/25 USD/CAD: C$1.0270
|
| 17.04 08:29 |
Oil prints new record
WTI Nymex crude oil hits fresh
record highs above $115.21 per barrel. Mass media report that output in Nigeria
could fall by nearly a third by 2015 if it fails to garner more investment.
|
| 17.04 08:16 |
GBP/USD rebounds from lows
GBP/USD tracks euro-dollar's
extended recovery, as this rate edges back
toward life highs at $1.5980, cable
trading up to $1.9747. Offers at $1.9740/50. Stops noted ona break of $1.9760, which if triggered seen
opening a move on toward $1.9780 ahead of stronger area between $1.9800/10.
Bids remain in place back at $1.9700/1.9690.
|
| 17.04 08:05 |
Orders:
EUR Bids: $1.5920, $1.5900 Offers: $1.5955/65, $1.5980, $1.6000
JPY Bids: Y100.85/80 Offers: Y102.30, Y102.80, Y103.00
GBP Bids: $1.9700/1.9690, $1.9660/50 Offers: $1.9740/50, $1.9780, $1.9800/10
AUSSIE Bids: $0.9350 Offers: $0.9400/05, 0.9470
|
| 17.04 07:37 |
Asian session: Yen falls as rally in stocks bolsters confidence in carry trade [M]
The yen fell to its lowest in more than three months against the euro as a rally in Asian stocks gave
investors confidence to buy higher-yielding currencies with loans from Japan. The currency also slid after the Wall Street Journal reported Freddie Mac, the second- largest
source of money for U.S.
home loans, may announce today an agreement with three major mortgage lenders
aimed at making more funds available for large home loans. ``Rising
stocks are supporting the dollar and euro against the yen,'' said Tadahiko
Nashimoto at Barclays Bank Plc. ``This is a reflection of some improvement in
risk appetite.'' The yen may fall to Y163.50
against the euro today, Nashimoto forecast. Japan's benchmark rate, which policy makers left at 0.5% this
week, is the lowest among major
economies and compares with 11.5% in South
Africa, 7.25% in Australia
and 8.25% in New Zealand.
EUR/USD fell to $1.5910 before rebounding to $1.5950. But
the rise was short-lived and rate retreated to a new lows near $1.5895. GBP/USD slid from $1.9740 to $1.9685. USD/JPY rose from Y101.70 to Y102.17.
Thursday won’t bring anything
important in Europe. At 11:00 GMT
Canada
will release its CPI report. At 12:30 GMT US Labor Department will issue
Jobless Claims data. At 14:00 GMT Philly Fed’s index will come. Analysts predict
the index rose to -13,0 versus -17,4
in March.
|
| 17.04 07:23 |
Japans stocks close higher
Japanese shares climbed for a third
day after better-than-forecast earnings at U.S. banks boosted confidence that
credit-market gridlock is nearing an end. The Nikkei 225 Stock Average climbed
252.17, or 1.9%, to 13,398.30. The broader Topix index added 21.44, or 1.7%, to 1,293.32.
|
| 17.04 06:58 |
Stock market: Wednesday summary
Stock market fixing: Nikkei 225 +155.55 +1.2% 13,146.13
Topix +15.91 +1.3% 1,271.88FTSE 100 +139.30 +2.36% 6,046.20
CAC 40 +74.42 +1.56% 4,855.10
Xetra Dax +117.79 +1.79% 6,702.84 DOW +256.80 +2.08% 12,619.27
NASDAQ +64.07 +2.80% 2,350.11
S&P 500 +30.21 +2.26% 1,364.64
10yr Note +1.2600 +0.353%
3.696%
NYMEX Crude Oil +1.14
+1.00% 114.93
Gold +16.30 +1.75% 948.30
Japanese stocks
advanced for a second day, led by banks and technology companies, on speculation credit market losses
have ebbed and after Intel Corp. forecast sales that may top analyst estimates.
Mizuho Financial Group Inc. extended its rally to a fourth day after the chief executive of Lehman
Brothers Holdings Inc. said the worst of the credit-market contraction has
passed. Ibiden Co., which makes packages for memory chips, soared the most in
two weeks. Property companies advanced, led by Sumitomo Realty & Development Co., on renewed confidence
easing credit conditions will provide a boost to the real estate market. Sumitomo Realty, Japan's third-largest developer,
rose 6.7%. Bigger rival Mitsui Fudosan Co. jumped 4.9%.
Ibiden surged 10%, the most since April 2, while Tokyo Electron Ltd. jumped
5.2%. Toshiba Corp. advanced 3.4%.
Victor Co. of Japan jumped 12% after the Nikkei newspaper reported the company
will end sales of flat- panel televisions in Japan this year to focus on the
more profitable U.S.
and European markets.
European stocks rose for a second
day, led by semiconductor makers and mining companies, after Intel Corp.'s
sales forecast beat analysts' estimates and Chinese economic growth of more
than 10% lifted metals prices.
Infineon Technologies AG gained the most this month after Intel Chief Executive
Officer Paul Otellini said there were no signs of economic weakness hurting U.S.
or European sales. BHP Billiton Ltd. increased the most since February as
copper, lead and nickel advanced. Anglo American Plc added 4.5%.
Deutsche Bank AG led the region's lenders to their first gain in seven days
after Wells Fargo & Co. and JPMorgan Chase & Co. of the U.S. reported
earnings that exceeded some analysts' predictions. Societe Generale SA climbed
3.2%.
L'Oreal SA fell 7.4% after saying first-quarter revenue rose 2.1% to 4.36
billion euros, compared with analysts' estimates of 4.41 billion euros. UBS AG
downgraded the shares to ``neutral'' from ``buy,'' saying this was ``a
disappointing start to the year.''
Stocks rallied on Wall Street too as better-than-expected earnings reports from
bellwethers Intel and JP Morgan overshadowed record oil and gas prices and
another dour reading on the housing market.
More news: Dow stock Coca-Cola reported higher sales and earnings
that topped estimates Wednesday morning.
Washington Mutual reported a $1.1 billion quarter loss late Tuesday, as
it had warned it would a week earlier. The company also said it has concluded
its plans to raise $7 billion in capital from private equity firm TPG.
Wells Fargo reported lower quarterly earnings that nonetheless topped
analysts' forecasts. The company's profit was hurt because it had to increase
loss reserves, setting aside $2.03 billion to cover higher delinquencies and
defaults on mortgages and other loans.
Economic news. In the latest troubling sign for the housing market, new
home construction fell more than expected to a 17-year low. Building permits, a
measure of builder confidence, also declined. The Consumer Price Index
(CPI) rose 0.3% in March, up from a flat reading in March, but in line with
analysts' estimates. The so-called "core" CPI, which strips out
volatile food and energy prices, rose 0.2%, up from a flat reading in March and
also in line with forecasts.
|
| 17.04 06:47 |
FOREX. Wednesday summary
The dollar fell to a record low
against the euro as
European inflation accelerated last month, reducing chances the European
Central Bank will follow the Federal Reserve in cutting interest rates. The
currency had its biggest decline versus the euro in three weeks, weakening to
$1.5979 as U.S.
housing starts dropped more than twice as much as forecast to a 17-year low. Futures
on the Chicago Board of Trade showed a 28 percent chance that policy makers
will reduce the fed funds target by a half-percentage point to 1.75 percent on
April 30, compared with a 42 percent likelihood a week ago. The rest of the
odds were for a reduction of a quarter-percentage point.
The European inflation rate accelerated to 3.6 percent last month, the
highest in almost 16 years, the European Union's statistics office in Luxembourg said
today. ECB executive board member Juergen Stark said yesterday that interest
rates at 4 percent may not be high enough to contain inflation.
Work began on 947,000 U.S.
homes in March at an annual rate, down 11.9 percent from February and the
fewest since March 1991, the Commerce Department said. Starts were projected to
fall 5.2 percent to a 1.01 million pace from an originally reported 1.065
million rate in February, according to the median forecast of 72 economists
surveyed.
The pound fell to the lowest level ever against the euro after a report
showed European inflation accelerated more than initially estimated in March,
bolstering speculation the U.K.
currency's yield advantage over the single currency will diminish. Britain's
currency declined to a record for a second day as the euro region's inflation
rate rose to 3.6 percent last month, the highest level in almost 16 years, the
European Union's statistics office said today. Rising consumer prices have
forced the European Central Bank to keep the benchmark rate at a six- year high
of 4 percent, while the Bank of England has cut its main rate three times since
December, to 5 percent.
EUR/USD rose
sharply from $1.5670 to a new life-time high on $1.5980 before retreated a bit. GBP/USD strengthened
following the euro from $1.9600 to $1.9805. Later rate corrected to $1.9690. USD/JPY printed
lows around Y100.80 before rebounding to Y101.90.
Thursday won’t bring anything
important in Europe. At 11:00 GMT
Canada
will release its CPI report. At 12:30 GMT US Labor Department will issue
Jobless Claims data. At14:00 GMTPhillyFed’sindexwillcome. Analysts predict the index rose to -13,0
versus -17,4 in
March.
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| 17.04 06:31 |
USD/JPY techs:
Resistance 3: Y103.60 Resistance 2: Y103.00 Resistance 1: Y102.30 Current price: Y102.07 Support 1: Y101.70 Support 2: Y101.30 Support 3: Y100.80 Comments: Dollar tries to rebound. Support is around Apr 11 highs on Y102.30 with a break above will target Apr 03 highs on Y102.90/00. Stronger level is near Mar 11 highs on Y103.60. Support comes near session lows Y101.70. Under there is a room for a dipper correction to Y101.30 and then – to Wednesday’s low on Y100.80.
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| 17.04 06:16 |
USD/CHF techs:
Resistance 3: Chf1.0170 Resistance 2: Chf1.0100 Resistance 1: Chf1.0010 Current price: Chf0.9995 Support 1: Chf0.9940 Support 2: Chf0.9880 Support 3: Chf0.9820 Comments: Dollar retreats with support comes at yesterday’s low on Chf0.9940, then – on Chf0.9880 (Apr 10 low). Break under will widen losses to Chf0.9820. 0100/10. Resistance comes near session high at Chf1.0005/10 with a break above will extend rise to Chf1.0100 and Chf1.0170 (Apr 09 high).
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| 17.04 06:09 |
GBP/USD techs:
Resistance 3: $1.9840 Resistance 2: $1.9800 Resistance 1: $1.9730 Current price: $1.9709 Support 1: $1.9700 Support 2: $1.9660 Support 3: $1.9610 Comments: Cable continued to trade contained with minor resistance comes at session high on $1.9730. Stronger level is on Wednesday’s high on $1.9800/10. Key resistance comes near channel line from Mar at $1.9840. Support comes near $1.9700, further – at $1.9660. Key level is around trend line from Apr 2006 at $1.9610.
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| 17.04 05:43 |
EUR/USD techs:
Resistance 3:$1.6080 Resistance 2: $1.6020 Resistance 1: $1.5980 Current price: $1.5933 Support 1: $1.5900 Support 2: $1.5860 Support 3: $1.5750 Comments: Euro holds a bit below new record high on $1.5980 (key resistance). Above the recover may extend to $1.6020 and $1.6080. Strong support comes near session low on $1.5900/10. Below correction may target $1.5860 and $1.5750 (Wednesday’s low).
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| 17.04 05:20 |
Daily History for April 16, 2008
High Low Close EUR/USD 1.5976 1.5760 1.5942 USD/JPY 101.92 100.81 101.77 GBP/USD 1.9805 1.9601 1.9726 USD/CHF 1.0108 0.9940 0.9999
EUR/JPY 162.46 160.41 162.23 EUR/GBP 0.8096 0.8021 0.8078 GBP/JPY 200.93 199.12 200.75 GBP/CHF 1.9820 1.9646 1.9725
Change % Change Last Nikkei 225 +155.55 +1.2% 13,146.13 Topix +15.91 +1.3% 1,271.88 FTSE 100 +139.30 +2.36% 6,046.20 CAC 40 +74.42 +1.56% 4,855.10 Xetra Dax +117.79 +1.79% 6,702.84 DOW +256.80 +2.08% 12,619.27 NASDAQ +64.07 +2.80% 2,350.11 S&P 500 +30.21 +2.26% 1,364.64 10yr Note +1.2600 +0.353% 3.696% NYMEX Crude Oil +1.14 +1.00% 114.93 Gold +16.30 +1.75% 948.30
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| 17.04 05:09 |
Schedule for today, Thursday, April 17, 2008
04:30 Japan Industrial output (February) final - -1.2% 04:30 Japan Industrial output (February) final Y/Y - 4.2% 09:00 EU(15) Trade balance (February) unadjusted, bln - -10.7 11:00 Canada CPI (March) - 0.4% 11:00 Canada CPI (March) Y/Y - 1.8% 11:00 Canada CPI excluding food and energy (March) - 0.5 (0.4)% 11:00 Canada CPI excluding food and energy (March) Y/Y - 1.3% 12:30 USA Jobless claims (week to 12.04) 380K 357K 14:00 USA Philadelphia Fed index (April) -14.0 -17.4 14:00 USA Leading indicators (March) 0.1% -0.3% 20:30 USA M2 money supply (07.04), bln - -30.3
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